Services – LICA Equities

OUR SERVICES

LICA Equities understands the importance of transaction structure. Our team possesses the necessary expertise to effectively structure a deal, ensuring its successful completion while prioritizing the best interests of our clients.

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LICA Equities' team is equipped to finance real estate capital projects of any size, including but not limited to retail, office, multifamily, and industrial projects. Whether it's ground-up construction, acquisition financing, or capitalizing an entire transaction, our team can meet your capital requirements.

By leveraging technology and our extensive network of leading lending sources, we can provide a wide range of financing options to suit your needs.

Permanent/Fixed Rate Financing

The most commonly used product in the commercial real estate industry is Permanent/Fixed Rate Financing, which typically offers the lowest interest rates, longest terms, and longest amortization schedules. At LICA, we collaborate with banks, Wall Street, life insurance companies, and Fannie Mae/Freddie Mac to provide our clients with a diverse range of permanent solutions to suit their needs.

Construction Financing

Construction financing refers to a short-term loan that borrowers utilize to fund the construction costs of a facility from the ground up. The loan terms vary depending on the product type and the duration of the building process. At LICA, we have the capability to provide higher leverage and non-recourse construction financing for a higher cost.

Bridge Loans

Bridge financing is a flexible short-term financing solution that encompasses various strategies, often involving challenging or complex components as part of the transaction.

At LICA, our bridge financing services enable borrowers to reposition and stabilize their properties by providing the necessary time. Once the property is stabilized, a longer-term loan is provided to pay off the bridge/renovation loan. Bridge loans typically have a duration ranging from six months to five years, and lenders may be willing to underwrite to lower debt-service-coverage ratios (DSCRs) and lend on higher loan-to-costs (LTC). Such lenders have confidence in the borrowers' business plans to increase revenue from the property, thereby improving the DSCR in the future.

Land loans

Some of our clients purchase land with the intention of developing it, but may face entitlement risks. At Mansfield, we monitor land lenders who can underwrite these risks and offer loans ranging from 12 to 24 months, amounting to 50% to 75% of the land cost.

Generally, our land loans have interest rates ranging from 7.5% to 10%, and are offered with recourse.

Preferred Equity / Mezzanine Loans

LICA offers assistance to borrowers who require funding beyond what a conventional lender is willing to finance to complete a transaction. The transaction can be structured in various forms, including partnership debt, preferred equity, or mezzanine loans.

Mezzanine debt is generally structured as a loan secured by a property and is senior to any equity, but junior to the senior loan on the property. In contrast, preferred equity is an equity investment in the property-owning entity that is not secured by the property but rather by an interest in the entity investing in (or owning) the property. Both structures carry a preferred return that can be paid off with a refinance or sale. Some structures may require the lender/investor to remain in the deal with a look-back IRR.

OUR SERVICES

Permanent/Fixed Rate Financing

Construction Financing

Bridge Loans

Land loans

Preferred Equity / Mezzanine Loans

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