A single-asset real estate holding company operating as a subsidiary of a broader multi-family / student housing real estate syndication portfolio.
The Financing Situation:
The Company needed capital quickly to execute on additional portfolio purchases and support working capital at the parent level, where COVID-19 restrictions had temporarily affected occupancy rates at some of the student housing assets.
Although the parent company and guarantor had a demonstrated history of success, there was no single property that had a value sufficient to provide collateral coverage on the loan. By utilizing a holistic approach of looking at both business and guarantor assets, SG was able to get comfortable with a $6MM facility secured by two properties.
This transaction highlights SG’s ability to structure and underwrite collateral-based / guarantor-based loans. While many of you know us as a cash flow-based lender, we now provide special situation (balance sheet) loans requiring creativity, flexibility, and speed to close.