Underwriting Development Projects: How to Get Fast and Positive Results from Experienced Lenders
— October 2002
The Financing Challenge: Putting the Pieces Together
— August 2002
Financing Condominium Conversions
— July 2002
Mountain Funding Announces New One-Stop Lending Program
— April 2002
Multi Family Financing Trends: One-Stop Financing, Does It Exist?
— April 2002, Scotsman Guide
2002 Forecast, A Need For Opportunistic Equity
— February 2002, Scotsman Guide
Mountain Funding Acquires Controlling Interest in Major Real Estate Development Company
— Jan 2002
Investment Opportunities Continue to Rise
— Jan 2002, Scotsman Guide
Mountain Funding Acquires Controlling Interest in Major Real Estate Development Company
Synergistic Alliance to Benefit Both Mountain's Lending/Investment Business and Paramount's Acquisition/Development Programs
Charlotte, NC/Boca Raton, Florida - January 22, 2002 - Mountain Funding LLC, a national real estate lending and investment company based in Charlotte, NC, has acquired a controlling interest in the Paramount Group of Companies, a multi-faceted real estate development, management and investment company based in Boca Raton, Florida. The acquisition expands Mountain Funding's existing development due diligence and asset management capabilities well beyond those of traditional private capital firms. Paramount's national presence, and its expertise in development, construction, asset and property management, will expand Mountain's ability to underwrite and manage a greater number of complex debt and equity opportunities.
"Capitalizing on the opportunities in today's market requires access to multiple resources and a strong national reach with a depth of experience in a variety of areas," said Peter Fioretti, CEO/President of Mountain Funding, LLC. "This acquisition strengthens our development underwriting, operational and asset management abilities, and creates a solid platform for us to expand into more complex "hard to finance" high leverage transactions."
Mountain Funding joins The Paramount Group of Companies which also includes: Paramount Enterprises, an investment holding company which acquires or joint ventures with real estate owners and developers located nationally; The Siegel Group, a developer, owner, operator, investor and manager of commercial and residential projects, responsible for the development of approximately 13,000 homesites in Florida, New Jersey and California, with home values aggregating approximately $2.4 billion, and the development and ownership of approximately 3 million square feet of commercial space valued at approximately $450 million; and Paramount Residential, a premier builder of custom residences in the finest country club, golf and gated communities in Southeast Florida.
"Mountain Funding's exceptional track record and financial strength increases our ability to provide fast financing alternatives to our existing strategic development partners," said Ned L. Siegel, president of The Siegel Group. "Furthermore, together our team will be able to expand our overall geographical reach throughout the country, and increase the penetration within areas that we already have a presence in, such as Florida, California, the Carolinas and the Northeast."
One of the Paramount Companies is Paramount Enterprises, an investment holding company, which acquires or joint ventures with real estate owners and developers nationwide. Fred B. Rothman, Mountain's Director of Operations and a principal of Paramount based in the company's Boca Raton office, will spearhead this operation. In addition to acquiring an interest in a significant national development company, Mountain views its investment in Paramount Enterprises as a built-in customer base for its development lending business.
Although headquartered in Charlotte with branch offices in Princeton and Boca Raton, Mountain Funding's investment and lending activities have been shifting towards the West Coast where there have been excellent opportunities but a shortage of high leverage lending and investment institutions. As part of its continued expansion program, a full service originations office for Mountain and development office for Paramount is slated to open in California in the second quarter of this year.
"The alliance of Mountain Funding and Paramount results in combined experience in virtually every product type and market, making us extremely flexible and competitive," said Rothman. "Our investment philosophy is based on our ability to quickly react to great opportunities. As we attract most of our transactions from commercial mortgage brokers, we will dedicate the next several months to visiting with as many of them as possible to explain how this alliance between Mountain Funding and The Paramount Group of Companies can work to their personal benefit."
"The combined effects of the recession, September 11th, the real estate slowdown and declining corporate profits have all resulted in a narrowing of conventional debt and equity sources available for real estate opportunists in today's market," says Fioretti. "Lending criteria have tightened while non-conventional capital sources have become fewer. At the same time, and maybe as a result, we are seeing a sharp increase in the rise of opportunistic value-added transactions and special situational "story" deals particularly in the mid-market $5-$50 million range. We expect this trend to continue through 2002 and into 2003. We view our strategic alliance with Paramount as a platform to expand our business, capitalize on the opportunities we are seeing, and position Mountain Funding as a premier institutional provider of high leverage debt and equity capital for such opportunistic situations."
Mountain Funding LLC, headquartered in Charlotte, NC with branch offices in Princeton, NJ and Boca Raton, FL, provides high-leverage senior/mezzanine debt and equity to real estate projects and entities. Established in 1993, Mountain Funding has closed approximately 50 equity and debt transactions involving real estate projects valued in excess of $2.8 billion. Mountain targets "value-added" situations which are undervalued or underperforming and have realistic potential for significant value and/or cash flow enhancement. Typical value-added projects include condominium conversions; commercial/residential repositionings, expansions and improvements; and low-leverage land. Mountain Funding also provides quick closings for special situation financing where a complex or distressed ownership, debt or capital structure presents an urgent need. First mortgages range from $5-$50 million; mezzanine and equity transactions range from $2-$20 million.
Mountain Funding Announces New One-Stop Lending Program
Specifically designed for value-added income properties and condo conversions
Charlotte, NC -April 5, 2002- Mountain Funding LLC, a national real estate lending and investment company based in Charlotte, NC, has announced the availability of a new lending program designed to provide one-stop financing for value-added income projects and condominium conversions. The program combines, in one blended instrument, the senior, mezzanine and even equity components required in a typical transaction.
"Due to the current economic conditions, first mortgage loan levels continue to decrease thereby increasing the need for mezzanine debt and equity loans," said Peter Fioretti, president and CEO of Mountain Funding. "Our blended loan program allows developers to save time and money while still maintaining more of the deal's profit and control than they would if raising separate pieces of mezzanine and equity. In addition, the developer is spared the hassle of coordinating three different levels of capital each requiring separate due diligence and attorneys. What's more there are no intercreditor agreements."
Designed as a one-stop financial solution, this program is a cost effective alternative to more traditional lending procedures. The firm provides the complete financing package (up to 95% for residential projects and condominium conversions; 90% for retail, office, industrial), $5-$100 million, with interest rates as low as 7.5%. The firm has the capability to provide immediate quotes, commitments in twenty-four hours, and closings in two to three weeks. The following is the firm's Residential Matrix (different rates will apply for other property types):
Maximum
LTV/LTC |
Interest
Rate (a) |
Closing
Points |
Mezz/Equity
Exit Fee(b) |
Maximum
Term (c) |
| 80% |
7.50% |
2.5 |
0.00% |
3 years |
| 85% |
7.75% |
2.5 |
2.00% |
3 years |
| 90% |
8.50% |
2.5 |
4.50% |
3 years |
| 95% |
9.25% |
2.5 |
6.50% |
3 years |
| Condo Conversions: Add Loan Admin Fee of 1% of Sales |
(a) This is all-in rate inclusive of LIBOR (minimum 3.0%) plus margin.
(b) Due at end of term. No equity participation.
(c) Minimum one-year lockout, except for condo conversions.
Mountain Funding LLC, headquartered in Charlotte, NC with additional offices in Princeton, NJ and Boca Raton, FL, provides high-leverage senior/mezzanine debt and equity to real estate projects and entities. Expansion plans include the opening of a West Coast office in the summer of this year followed by a Midwest office by the end of 2002. Established in 1993, Mountain Funding has closed equity and debt transactions involving real estate projects valued in excess of $2.8 billion. Mountain targets "value-added" situations, which are undervalued or underperforming and have realistic potential for significant value and/or cash flow enhancement. Typical value-added projects include condominium conversions; commercial/residential repositionings, expansions and improvements; and low-leverage land. Mountain Funding also provides quick closings for special situation financing where a complex or distressed ownership, debt or capital structure presents an urgent need. First mortgages range from $5-$100 million; mezzanine and equity transactions range from $2-$20 million.
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