Representative Transactions

$28,000,000 Bridge-to-Perm Refinance - 144 Unit Class A Multi

Terms: Confidential

SCG arranged $28,000,000 in bridge financing for the refinance of a 144-unit Class A multifamily property in Washington state. The project is a newly constructed and is currently finishing lease up.

From a bidding standpoint, this was the most competitive deal we've originated since 2016. Lenders were keen to deploy capital into this growing submarket alongside a high-caliber sponsor group. Certificates of occupancy were obtained throughout the summer of 2023 with final CO being delivered in October. Leasing velocity was very strong despite an uptick in new multifamily deliveries in the submarket. The subject was 80% leased at closing.

The loan proceeds were used to retire the senior construction loan and provide sufficient reserves to carry the project through lease up. The loan will flip to an in-house Fannie/HUD perm loan at stabilization with no exit fee. The loan structure also included a $1,000,000 earn out, subject to debt yield hurdles.

$3,850,000 Bridge Loan - Redmond, WA Industrial

Term: 2 years

LTV: 43%

Our borrower’s business had been disproportionately impacted by Covid and their relationship bank could not renew their loan until their revenues were re-established, which would take another 1-2 years. SCG quickly sourced a new two year, interest only, senior bridge loan to refinance the bank’s matured mortgage which provided the borrower with the additional time they needed to prove their post-Covid business was thriving again. Since 2016, we’ve assisted many commercial banks and credit unions with situations just like this. Borrowers are able to exit on friendly terms with their bank and the bank keeps a relationship - everyone’s happy.

$11,665,00 - Perm Loan for Class A Mixed Use Acquisition

Term: 7 Years
Rate: 5.45%
LTV: 61%
Amortization: 5 Years IO, 35 Years
Repayment: Non Recourse

SCG arranged $11,665,000 in permanent financing for the acquisition of Thrive Flats, a recently constructed Class A 100-unit mixed use property outside Kansas City, MO. Sponsorship was excellent and the property cash flow was strong.

SCG was tasked with securing a lender who could overcome a number of property-level obstacles. First, the property is on a long term ground lease with a municipality. Second, the lender would only be financing the multi family above the first floor retail. Thirdly, the ground floor retail is classified as a broken condo. Despite the complexity of the deal SCG was able to source a lender who would underwrite to pro forma rents as well as a 35-year amortization, which dramatically increased loan proceeds.

$23,700,000 - Perm Loan for160-Unit Class A Apartment

Term: 10 Years
LTV: 58%
Amortization: 7 Years IO, 30 Years
Rate: 5.99% Fixed
Repayment: Non Recourse

SCG arranged $23,700,000 in permanent financing for the refinance of Breckenridge Apartments, a Class A 160-unit multifamily property in Nampa, ID.

SCG was tasked with finding a lender who could rate lock and close prior to stabilization. The project received final certificate of occupancy on the last buildings in October of 2022 and was only 85% leased at the closing of the loan. The selected lender only required 75% of the units to be occupied at closing. They provided a 10-year fixed rate with 7 years interest only.

$16,000,000 Construction Loan for 71-Unit Mixed Use Project

Term: 5 Years
LTV: 64%
Amortization: 24 Months IO, 30 Years
Rate: 4.87% Fixed
LTC: 85%
Repayment: Recourse

SCG placed a $16,000,000 all-in-one construction, mini-perm, and perm loan for Anthony’s Place, a 71-Unit mixed use project in Salem, OR. When complete the building will also include 13,000 sf of ground floor retail. While the rate on most construction loans floats during construction, this loan features a fixed rate from construction through perm. The fixed rate insulates the borrower from both interest rate exposure and potentially needing to “right size” the loan once stabilization occurs. The loan was sized to 85% of total project cost which is roughly 10% more leverage than the typical commercial bank.

$4,000,000 Perm Financing -4-Property Retail Portfolio

Term: 7 Years
LTV: 75%
Amortization: 25 Years
Rate: 4.17% Fixed
Prepayment: 5-4-3-2-1-0 0

SCG successfully advised on a $4,000,000 cash-out refinance for a 4-property retail portfolio in the Salem, OR MSA. The portfolio included a mix of single-tenant restaurant and multi-tenant retail buildings spread across western Oregon. SCG was able to source a lender who was comfortable with the tertiary nature of the market given the properties performed very well during COVID. The refinance provided cash out to the sponsor, future funding facilities for CAPEX, and much higher leverage than any other lender in the market.

$5,900,000 Perm Financing for Multi-Tenant Retail

Term: 10 Years
LTV: 65%
Amortization: 30 Years
Rate: 4.46%
Fee: Par
Repayment: Non Recourse

SCG successfully arranged a $5,900,000 loan for the cash out refinance of Turnridge Corner, a Class B multi-tenant retail building in Salem, OR. The loan proceeds were used to retire the existing mortgage as well as provide cash out to the project sponsor. The non-recourse execution was provided by a national life insurance company.

12 and 16-unit Build-to-Rent Townhome Construction Loan

Term: 15 months
LTC: 80%
LTV: 67% (at completion)
Rate: 8.50% Fixed

SCG successfully sourced two $4,800,000 and $3,650,000 vertical construction loans for two build-to-rent townhome projects in a bedroom community of north Salem, OR. The loan was sized to 80% of cost and features a fixed rate at 8.50% interest only with no minimum interest period. Despite the market turmoil caused by the prolific rise in interest rates during Q1 and Q2 2022, the loan closed in 45 days.

$26,600,000 Construction Loan for 94-Unit Build-to-Rent Townhome Community

Term: 18 months
LTC: 74%
LTV: 59% (at completion)
Rate: 7.99% Fixed

SCG successfully placed a vertical construction loan for Boones Crossing, a 96-unit for-rent townhome project in Woodburn, OR. The loan proceeds were used to refinance an existing mortgage, fund vertical construction costs as well as an 18-month interest reserve. The recourse loan was sized to 74% of cost and 59% of completed value which gave the sponsor credit for imputed equity in the project.

$19,500,000 Construction Loan for 61-Unit Subdivision

Term: 15 months + 3 Month Extension
LTC: 85%
LTV: 72% (at completion)
Rate: 7.75% Fixed

SCG successfully placed a high-LTC construction loan for Timberline Hills, a 61-unit for-sale single family subdivision in Salem, OR. The loan proceeds were used to refinance an existing mortgage, fund vertical construction costs as well as a 15-month interest reserve. The recourse loan was sized to 85% of cost and 72% of completed value which gave the sponsor credit for imputed equity in the project.

$19,750,000 Construction Loan for 31-Unit Subdivision

Term: 12 months
LTC: 100%
LTV: 68% (at completion)
Rate: 8.00% Fixed

One hundred percent loan-to-cost financing is essentially extinct, but when you’re dealing with a common-sense lender and a best-in-class developer with a long history of delivering custom-home quality product to market at the speed of a production builder - 100% LTC can be resurrected. SCG’s mandate was the source a non-bank lender who would recognize and give credit for the sponsor’s imputed equity in the project and close quickly. Time to close from executed LOI: 40 days. Location: Eugene, OR. We are often asked why our clients choose “more expensive” non-bank construction financing vs traditional bank financing. Three reasons: 1) higher LTC 2) easier funding/draws 3) no brain damage incurred 4) cost of capital, for faster builders, is almost the same as bank financing.

$9,000,000 Bridge Loan for 68-Lot Single Family Lots

Term: 18 months
LTV: 50%
Rate: 8.00% Fixed

The Sage Creek Group successfully placed an interest only bridge loan on a 68-paper lot subdivision in Eugene, OR. The loan proceeds were used to retire a maturing loan as well as fund an 18-month interest reserve to give the sponsor adequate time to finish developing the lots. The loan has no prepayment penalty or minimum interest requirement and the lender is ready to fund the vertical starts upon completion of the infrastructure improvements.

$36,000,000 Construction Loan for 83-Unit Single Family Subdivision

Term: 24 months
LTC: 75%
LTV: 67% (at completion)
Rate: 7.99% Fixed

SCG successfully placed an all-in-one development and vertical construction loan for Bethel Park, an 83 unit, for-sale, single family subdivision in Salem, OR. The loan was sized to 75% of total project cost and 67% of as-complete value. Similar deals typically require two separate closings - one for the infrastructure and another for the vertical construction. This transaction featured a single closing, providing not only significant savings to the best-in-class sponsor but also the assurance of a lender committed to the completion of the entire project. Origination to closing = 30 days.

$7,500,000 Bridge Loan for Future 179-Unit Apartment Project

Term: 6 months
LTV: 65%
Rate: 7.95%
Repayment: Interest Only

SCG secured a $7,500,000 cash-out refinance of a 13-acre land tract permitted for 407 apartment units in Woodburn, OR. The 6-month term is fixed at 7.95% and the loan was sized to 65% of value. The site is a half mile east of Amazon's future 3.84 million square foot distribution facility near I-5. Most land lenders are restricted to 50% leverage. This high-leverage financing structure allowed the sponsor to repay a maturing loan as well as give him enough time for his construction loan to fund.

Closing: 30 days

$16,000,000 Construction Loan for 60- Unit for BTR Townhomes

Term: 21 months + 3 month extension option
LTC: 90%
LTV: 75% (at completion)
Rate: 7.75%
Fee: 2.25%
Repayment: Recourse

Sage Creek successfully arranged $16,000,000 in vertical construction financing for the development of the Young Street Townhomes, a 60-unit for-rent townhome project in Woodburn, OR. The 90% LTC financing is priced at 7.75% fixed for a term of 21 months. High-LTC construction projects like this are typically funded with double-digit interest rates from hard money lenders. SCG highlighted the sponsor's long and successful track record of single-family development and secured best-in-class pricing for a high LTC loan.

$11,400,000 Perm Financing for 52-Unit Student Housing

Rate: 3.375% Fixed
Term: 8 years
LTV: 74%
Amortization: 24 Months Interest Only (28-year thereafter)
Prepayment Penalty: None

SCG successfully placed $11,400,000 in permanent financing for a 52-unit student housing project in Bellingham, WA known as Samish Station.

(Jan 2021) The disruption of Covid has caused traditional capital sources (Fannie/Freddie/Regional Banks) to completely stop funding student housing projects for fear of students potentially canceling their leases. Although both buildings (24 units and 27 units) were 100% occupied at application, both buildings had only recently leased up so there was very little collection history that could mitigate concerns of potential non-payment by students. In addition, both buildings had an 8-year multi-family tax exemption which prevented most lenders from delivering the long term fixed rate the borrower wanted.

SCG identified a capital source that clearly understood that the uncertainty with student housing would soon pass. They also leaned on the sponsor's long history of building and operating apartments in western Washington. They structured a full-leverage loan along with an 8-year term to match the tax exemption. They also provided cash out at closing as well as two years of interest only payments so the sponsor could recapitalize over time. Debt service reserves were not required and the loan is open to prepayment at any time.

$11,750,000 Bridge Loan for 96-Unit Apartment

Rate: Floating - WSJ Prime (4.25%) + 150 bps
LTV: 75%
LTC: 85%
Amortization: Interest Only
Prepayment Penalty: None

The Sage Creek Group successfully arranged $11,750,000 in bridge financing for a recently constructed 96-unit garden style market rate apartment asset in Salem, OR. The loan proceeds were used to retire the senior construction loan, fund an interest reserve, and cover closing costs. Sized to 75% of As-Stabilized value, the project was 50% occupied at application and featured a term of 18 months with extension options. SCG had previously arranged a high-LTC construction loan for the asset in 2018. Despite the COVID disruption, which caused many lenders to shy away from lease-up plays, SCG was able to identiy a capital source that clearly understood both the quality of the asset and the exceptionable ability of the sponsor to execute the lease up and stabilize the property. Application to closing was 40 days.

SCG successfully arranged acquisition financing for a owner-occupied commercial site in the Seattle MSA. The borrower acquired the site to build a new office building and the loan proceeds were used to acquire the building and cover closing costs.
Most banks were pricing 5-year money in the low 4%-range with origination fees of 50 bps. SCG was able to leverage its wholesale banking relationships to obtain a 70 bps pricing discount for its client. The client chose to "buy out" the prepayment penalty which included a 16 bps rate-adder without which the rate would have been fixed at 3.36%.

$5,400,000 Perm Financing for Medical Office Building

Loan: $5,400,000
Rate: 3.75% Fixed
LTV: 75%
Amortization: 25 Years
Guaranty: Recourse
Term: 5 years

SCG secured a $5,400,000 cash-out refinance for a 20,000 sf medical office building in Bellingham, WA. The loan represented 75% of value and over 80% of the building is occupied by one credit tenant. Most lenders viewed the subject property as a single-tenant building and underwrote to a higher stress test than they would a standard MOB, thus cutting loan proceeds. The selected capital provider had none of these constraints and was able to provide a full leverage loan. As a result, the loan provided a considerable return of equity to the sponsor. The index rate dropped considerably at closing and the lender adjusted the rate accordingly.

$3,600,000 Perm Financing for 28-Unit Apartment

Loan: $3,600,000
Rate: 3.95% Fixed
LTV: 75%
Amortization: 30 Years, 5 years IO
Guaranty: Non-Recourse
Term: 10 years
Lender Fee: None
Prepayment Penalty: YM

The Sage Creek Group successfully arranged a $3,600,000 cash-out refinance for a 28-unit garden style apartment complex located in Oregon. The project sponsor recently completed construction of the asset and leased 16 of the 28 units to a hospital via a master lease. The master lease and the tertiary market (100 miles from the nearest MSA and a population of only 11,000) had proven challenging for previous capital providers. SCG was able to leverage the sponsor's proven track record of operating multi family assets in tertiary markets to obtain a 10-year fixed rate agency loan with 5 years of interest only at max leverage.

$7,750,000 Dealership Refinance

Rate: L+300 Floating
LTC: 70%
Amortization: 20-Year
Guaranty: Recourse
Term: 60 months
Fee: Par

The Sage Creek Group successfully arranged a cash out refinance for three used car dealerships and a single-tenant warehouse. The loan proceeds were used to acquire a Chevrolet/Nissan franchise dealership in Central Washington for a total of five loans sourced by SCG.

The goal of the transaction was for the sponsor to acquire his first franchise auto dealership. The acquisition required enough cash out from three of his used car dealerships and warehouse not only for a down payment on the franchise dealership but to satisfy General Motor's liquidity requirements for approval as a new franchise dealer. Banks are reluctant to provide cash out on special use properties and prior attempts by the borrower to refinance the used car dealerships were unsuccessful. SCG obtained terms sheets from commercial banks within two weeks and a commitment letter from the lead lender was secured in 45 days.

$4,650,000 Bridge Loan for Value-Add 44-Unit Apartment

Rate: 7.99% Fixed
LTC: 80%
Amortization: Interest Only
Guaranty: Non-Recourse
Term: 24 months
Lender Fee: 1% In, No Exit

The Sage Creek Group successfully arranged acquisition financing for a value-add multifamily asset in Salem, OR. The 44 unit, 1990's vintage property had some deferred maintenance issues but the real value to the sponsor was that rents were 18% below market and expense ratio was 40% of gross income. The sponsor's plan was to re-clad the exterior envelope on all four buildings, reduce expenses, as well as raise rents to market. Sized to 80% of total project cost, the loan included a future funding facility for the exterior renovations.

$9,945,999 Perm Financing for La Quinta Acquisition

Rate: 5.50% Fixed
LTC: 65%
Amortization: 20-Years
Guaranty: Recourse
Term: 60 months
Fee: 50 bps

The Sage Creek Group successfully arranged acquisition financing for a 101-key limited service La Quinta Hotel in Lynnwood, WA
Challenge: The sponsor was a first-time hotel buyer with no prior experience in hotel management.
Solution: SCG obtained numerous terms sheets from conventional lenders who were attracted to the hotel's strong historical occupancy and cash flow as well as its highly desirable location off Interstate 5. SCG was able to mitigate the sponsor's lack of experience by highlighting their strong secondary sources of repayment and outside cash flow and the fact that the sponsor was choosing to retain the seller's current management team.

$11,400,000 Construction Financing for 96-Unit Apartment

Rate: Prime + 549
LTC: 83%
Amortization: IO
Guaranty: Recourse
Term: 24 months
Fee: 1% in 1% Exit

SCG arranged ground-up construction financing for a 96-unit residential mid-rise apartment complex in Oregon. The client was a local real estate developer and operator with a long history of successfully managing and completing construction projects. Bank financing for the project was out of reach as many of the local and regional banks were full on multi-family construction or could not offer the leverage necessary to complete the project.

SCG targeted a capital provider who was not only comfortable lending in a tertiary market but could meet the high LTC (83%) needs of the project and was comfortable with the borrower's experience and ability to execute. One unique feature of the financing facility uncommon with non-bank lending is the loan proceeds were not fully funded at closing so the borrower only pays interest on disbursed funds (no negative arbitrage).

$23,900,000 Perm Financing for 330-Unit Apartment

Rate: Fixed for 20 years at 4.92%
Amortization: 30 Years
Guaranty: Non-Recourse
Fee: Par
Prepayment: Yield Maintenance

SCG secured a 20-year fixed rate mortgage secured by a 330-unit apartment complex in Yakima, Washington. The loan proceeds were used to refinance the existing debt but also included $5,500,000 cash out to the borrower.

The sponsor's existing loan would not mature for another year and the early payoff was subject to yield maintenance. The property rents were scheduled to increase in the next 90 days which would maximize their cash out but they were concerned about rising rates and wanted to lock in with the pull back in treasuries. The sponsors also wanted to be able to access the equity the rental increases would create post-closing. SCG identified a lender who could refinance the existing debt now and allow the borrowers to obtain supplemental financing from them at a later date once the new rents had time to season.

$12,300,000 Perm Financing for 165-Key Best Western

SCG secured a 10-year fixed rate mortgage secured by a 165-room Best Western Plus in the Pacific Northwest. Constructed in 1999 by the borrower, all proceeds were used to refinance the existing debt. SCG identified a lender who was comfortable with the borrower's track record in operating hotels and their non-US Citizenship. The deal also included a large operating line of credit.

Term/Rate: 10 years fixed @ 4.96%

$4,600,000 Permanent Refinance

SCG secured a 5-year fixed rate mortgage on a Class B multi-tenant retail building from a national bank. SCG's client had a competing terms sheet from a large regional bank but SCG was able to improve on their rate by 80 bps as well as obtain par pricing form the lender.

3.65% Fixed (June 2017)
5-yr term, 20 yr Amortization

$2,100,000 Senior Bridge

An SCG client was facing a maturity on their 10-year note secured by a 20,000 sqft Class A office building. Their bank would not refinance or extend their note after having acquired it during the acquisition of a smaller bank. The combination of a 50% vacancy in the subject building as well as the borrower's lack of liquidity were roadblocks to conventional financing. SCG secured a two-year bridge loan, with no prepayment penalty or yield maintenance, as well as a seven month interest reserve to enable to borrower to pay for leasing commissions and tenant improvements.

Close time: 14 days
Rate: High single digits

$980,000 Single Tenant Acquisition, North Carolina

A California-based investor was acquiring a NNN Credit Tenant Leased Burger King in North Carolina through a 1031 exchange. The buyer's local bank could not provide funding outside their footprint and he was unfamiliar with the NC banking environment. He retained SCG who was able to quickly provide a solution via a large regional NC credit union.

70% LTV Acquisition
10-year term; 20-yr amortization
4.375%

$1,250,000 Fix and Flip Credit Line

SCG obtained an active Pacific Northwest investor with an evergreen fix and flip LOC that provides up to 90% of the purchase price of acquisitions and 95% of rehab dollars provided the after repair value of the asset is 75% or less. The line provides a 12-month term for SFR's, 1-4 Units, Condos, Townhomes and multi-family properties up to 20 units as well as high-leverage financing for new construction.

Rate: 8.50% IO

$775,000 Multi-Use Refinance and Renovation, Oregon

A group of investors were facing a hard payoff on a private money note and were unable to refinance conventionally due to their building's low occupancy. The asset also required additional Capex and TI dollars to lease up and stabilize the second and third floors. SCG arranged a refinance of their balloon payment as well as future funding facilities for TI and Capex. This solution gave them 18 months (with extensions) to complete the building's renovations as well as lease up and stabilize the property. No prepayment penalty, as always.

Denny's Refinance, Ohio

A California-based investor needed to refinance his Denny's in Ohio but was unfamiliar with the banking environment in the mid-west. In addition, his relationship bank was unable to provide competitive terms for this type of asset. SCG secured a fixed rate permanent mortgage from national bank with the following terms:

3.66% Fixed
5 yr term, 20 yr Amortization

$1,875,000 Land Acquisition

SCG secured a 3-year floating rate acquisition loan from a regional bank on behalf of a best-in-class assisted living operator and developer. The unimproved site is slated for the development of a future assisted living living facility.

LIBOR + 375
56% LTC