Whether the client’s desire is to refinance, repurpose, finance capital improvements, or acquire a property, Sheer arranges non-recourse senior lien term loans through hundreds of our firm’s capital relationships. Leverage generally maxes out at 80% Loan-To-Value (LTV), however many of Sheer’s banking relationships allow Loan-To-Cost (LTC) to exceed LTV. Fixed interest rates, floating interest rates, and adjustable interest rates are available depending upon the lending institution. The closing timeframe is generally 30-60 days and mainly contingent upon the borrower’s (i) intensity in negotiating the loan documents and (ii) promptness in providing the required due diligence. Sheer’s term loan sources include Life Companies, CMBS Groups, GSEs, Commercial Banks, Debt Funds, Family Offices, and Ultra-High Net Worth Individuals. A client seeking a term loan will benefit from Sheer’s negotiation of not only basic terms such as leverage, coupon, escrow caps, 3rd party report costs, and origination fees but also more complex terms such as prepayment structure, interest rate protection, springing lockbox provisions, holdbacks, earnouts, and more.

Minimum loan size: $1,000,000
Maximum loan size: No limit
Loan Term: 5-20 years
Loan Amortization: 15-30 years
Coupon: Available upon request

Whether the client’s desire is to refinance, repurpose, finance capital improvements, or acquire a property, Sheer structures non-recourse short-term loans through its most innovative debt relationships. The maximum leverage is generally 85% LTV, however, many circumstances allow LTC to approach 95%. Typically, interest rates are structured as floating over LIBOR with floors/caps, however, fixed rates are also available through several of Sheer’s bridge capital relationships. The closing timeframe generally varies from 15-30 days, primarily depending upon the borrower’s eagerness to reach closing. Sheer’s bridge loan sources include Debt Funds, Commercial Banks, Private Lenders, CMBS Groups, Family Offices, and Ultra-High Net Worth Individuals. A client seeking a bridge loan can expect Sheer to negotiate key terms (e.g. points in/points out, additional future funding(s), extension options, lockout, etc.) that borrowers frequently overlook.

Minimum loan size: $1,000,000
Maximum loan size: No limit
Loan Term: 1-5 years
Loan Amortization: Interest-Only
Coupon: Subject to daily credit market movements. Available upon request.

Sheer arranges non-recourse construction loans through more than 100 capital relationships. The maximum leverage is generally 65% LTC, however, financially strong sponsors with sites in irreplaceable locations often allow lenders to push the leverage higher. Typically, interest rates are structured as floating over Prime or LIBOR with floors/caps. The closing timeframe averages 60 days, but often hinges on the turnaround time of the final third-party reports and the equity partners’ readiness to invest. A completion guarantee is standard. A client seeking a construction loan can trust Sheer to not only cast a very wide net out to its capital relationships but also negotiate key terms that borrowers sometimes overlook.

Minimum loan size: $3,000,000
Maximum loan size: No limit
Loan Term: 12-36 months
Loan Amortization: Interest-Only
Coupon: Subject to daily credit market movements. Available upon request.

Sheer arranges stretch non-recourse construction loans through 20 capital relationships. The maximum leverage can stretch as high as 90% LTC. Typically, interest rates are structured as floating over Prime or LIBOR with floors/caps. The lender will sometimes bifurcate the loan into two notes (A Note & B Note), holding the B Note and selling the A Note. The closing timeframe varies widely due to the complexity and higher risk profile (i.e. higher leverage) of the debt. A client pursuing a stretch construction loan will be able to trust Sheer with our ability to weigh the many pros/cons versus arranging the capital stack utilizing numerous capital sources/types.

Minimum loan size: $15,000,000
Maximum loan size: No limit
Loan Term: 12-36 months
Loan Amortization: Interest-Only
Coupon: Subject to daily credit market movements. Available upon request.

Sheer arranges non-recourse Mezzanine construction loans through rare specialty capital relationships. The maximum leverage can stretch as high as 90% LTC for strong collateral. Typically, interest rates are fixed, however, some capital sources will consider adjusting the rate downward upon achieving certain hurdles (e.g. certificate of occupancy, stabilization, a specified debt service coverage ratio). The closing timeframe is generally between 30-60 days. A client who selects the Mezzanine route should be especially cognizant of potential pitfalls associated with collateral pledges, cure rights, the intercreditor agreement, and other nuanced deal points that Sheer will negotiate.
Minimum loan size: $5,000,000
Maximum loan size: No Limit
Loan Term: Coterminous with Senior Lien Creditor; generally 2-5 years
Loan Amortization: Interest-Only
Coupon: Negotiable, depending upon notable factors such as (i) total leverage, (ii) dscr, and (iii) asset quality

Sheer either invests in preferred ("pref") equity opportunities internally or arranges them through our firm’s specialty capital relationships. Sponsors seeking to keep a larger portion of the real estate asset’s upside hire Sheer to structure pref equity in lieu of JV equity. The maximum leverage above the senior lien is generally 85%-90% LTC. Typically, the coupon is fixed and has a maturity/balloon. The closing timeframe varies widely between pref equity groups, often depending upon necessary collaboration with the senior lien lender.

Minimum loan size: $1,000,000
Maximum loan size: No Limit
Term: Generally 2-5 years
Amortization: Interest-Only
Coupon: Negotiable, depending upon notable factors such as (i) total leverage, (ii) dscr, (iii) asset quality, and (iv) existence of back-end splits

Sheer either invests in joint venture (“JV”) equity opportunities internally or structures them by way of our firm’s closest capital relationships. Sponsors/Clients seeking to keep a smaller portion of their own equity in the deal hire Sheer to identify and introduce the ideal JV equity partner. JV equity investors will generally bring 90%-95% of the transaction’s total equity requirement. Typically, there is no maturity/balloon. JV equity generally enters the ownership entity as a Limited Partner, with the Client retaining the General Partner role. However, there are other times that a Client seeks a Co-GP investor necessitated by lender requirements as a credit enhancement (e.g. increasing Key Principal net worth/liquidity or bolstering Guarantor real estate experience). The closing timeframe for JV Equity varies widely, commonly hinging on the degree to which the partnership agreement is negotiated.

Minimum size: $250,000
Maximum size: No Limit
Pref coupon: Negotiable, depending upon notable factors such as (i) promote structure, (ii) % of equity provided by client versus JV equity partner, (iii) asset quality, and (iv) leveraged IRR