A significant percentage of our transactional work is for real estate offerings. These offerings are typically for real estate development projects, multi-asset real estate investment funds, and also single asset acquisitions.

The majority of our work is equity based securities offerings as most real estate operators are raising equity to be paired with institutional debt for asset acquisitions or equity paired with construction financing for development projects.

Private debt offerings tend to be more rare for several reasons:

The first is lenders prefer to see cash equity on the balance sheet of the borrower for extending debt financing thus the need for most real estate clients to raise that required equity through the offering. The second reason involves sharing in the accretive value built into a real estate portfolio. A typical note or bond does not provide an investor with participation in equity value of the asset.

Since debt offerings are usually only providing a fixed rate the investors do not participate in the upside of the portfolio’s value over time. While it is possible to execute a debt offering for real estate the rate of return provided by the debt instrument must be attractive enough for the investor to forgo participation in the upside of equity.

Interested in raising capital for your company or project? Call us today to discuss! (720) 586-8610