About
JADE Is A Leading Source Of Capital, Providing Tailored Debt Solutions.
Our ownership experience & capital markets expertise allows us to identify opportunities & deploy capital with conviction.
JADE’s investment platform targets opportunities resulting from the historically rapid interest rate moves in 2022 and subsequent dislocation in property valuations. Currently, there is roughly $53B worth of outstanding CRE CLO’s - which are secured primarily by non-recourse floating rate transitional loans with three-year maturities and are reliant on a refinancing or sale. Due to rising interest rates, many properties securing this debt will be impacted in their ability to service floating rate debt and/or refinance bridge loans thus requiring additional capitalization or sales. JADE seeks to provide preferred equity and mezzanine financing to fill gaps in the capital structure of multifamily sponsors who are unable to protect their assets against valuation declines and refinancing challenges.
Despite property value declines and the oncoming supply of maturing/problematic bridge loans, fundamentals support Class B/C multifamily; unemployment and real wages remain solid, mortgage affordability has dramatically declined, and replacement costs for new construction are uneconomic. Simultaneously, going in cap rates of 5.5%+ present an opportunity to achieve positive fixed rate leverage amidst the current agency lending environment.
JADE’s strategy concentrates on opportunities in which preferred equity and mezzanine financing will provide the existing common equity with more flexibility to withstand an elevated interest rate environment, while lowering the weighted cost of debt.
General Investment Terms + Guidelines
Check Size: $2MM-$10MM Per Transaction
Term: Up to 3 Years
Leverage: Up to 90% LTV (Deal Specific)
Rate: 15% + (Comprised of Current & Actual Component)
Geography: Nationwide
Asset Class: Existing Multifamily
