Financial Compound, a prolific commercial real estate finance broker based in Bel Air, California has been an innovator in identifying and structuring capital markets opportunities. Financial Compound and its staff have closed over $3.6 billion in transactions, running the gamut from low leverage first mortgages on trophy assets, to structured debt and equity placements for properties in need of renovation, to construction and unentitled land financing. For example we assembled a 100%-of-all-in-cost financing package (including land, hard and soft improvement costs, interest reserve, and closing costs) for the developer of a shopping center with minimal pre-leasing. The transaction was crafted so that the developer kept all of the upside after a 7.5% IRR to the financial partner.
Financial Compound is experienced with many types of financial structures, including acquisition, predevelopment, construction, mini-perm, refinance, bridge, rehabilitation, value added, credit lines, forwards, mezzanine loans, joint venture equity, preferred equity, highly leveraged participating debt, unsecured debts, pledge of partnership interests, personal loans, tax exempt bonds, tax credits, credit enhancements, letters of credit, improvement district bonds, and balance sheet financings including inventory and accounts receivable loans.
Financial Compound has longstanding relationships with many types of capital providers including institutional equity, private equity, life company, bank, CMBS, hard money, hedge funds, venture capital, and “friends and family” as well as lenders specializing in non-conventional projects.
Financial Compound and its staff have financed a variety of product types, including (in alphabetical order) apartments, bingo parlors, car washes, diners, entertainment center, farms, gyms, homes, industrial buildings, jewelry building, karate studios, land developments, mixed use, nightclubs, office buildings, peaches, quiznos, retail centers, supermarkets, theaters, USTs, vacant lots, warehouses, x-ray machines, yards, and a Zany Brainy.
Financial Compound also has the skills and proven track record to assist borrowers and lenders with commercial loan workouts, having performed numerous successful modifications in a distressed context. We have resolved complex financial problems with our proven methodology and helped the parties determine the best course of action. With Financial Compound no up-front fees are required and we receive compensation only upon the closing of a restructure. This pricing model is an outgrowth of our company philosophy and is unique in the industry. Our long history and relationships with the capital providers, coupled with our in-depth market knowledge, have helped us complete restructurings efficiently. Its the Financial Compound stimulus plan- When we work out your loan, we make a beneficial impact on the economy and capital markets of greater magnitude than the transaction itself.
COMMITMENT TO CLIENTS
Financial Compound maintains the highest standards of integrity and ethics in its business practices. Our processes and practices are an outgrowth of our analytical approach and keen market observation. Financial Compound’s commitment begins by carefully analyzing the client’s needs and the characteristics of each transaction. We underwrite and package a financing request, and confer with the client regarding its content and marketing approach. We often structure a creative solution derived from our extensive knowledge of the capital markets. Depending on the client’s desires, Financial Compound can “make a market” by contacting numerous capital providers and managing a competitive bid process, or we can undertake a more focused marketing strategy, for example, working with one capital provider that fits well for a specific transaction.
Once we obtain preliminary financing terms for a transaction, Financial Compound then evaluates the options in light of the client’s objectives and makes a recommendation. We often provide an ‘apples-to-apples’ comparison of financing proposals by quantifying the present value of terms such as amortization methods, promote and waterfall structures, escrows, holdbacks, lender fees, defeasance and other prepayment penalites, etc. Additionally, Financial Compound’s work ethic, attention to detail, and passion for the business- characterized by customer service, minimizes the client’s involvement with processing and paperwork.
Capital providers offer cutting edge terms to Financial Compound and often their senior level professionals work with us because of our technical expertise and large business flow. We can work quickly and place a transaction within hours if necessary. We have closed an institutionally priced loan in eight business days and “hard money” loans in two days.
Financial Compound’s networking advisory board of leading finance experts, accountants, tax specialists, investment bankers, appraisers, title officers, engineers, and lawyers facilitates efficient processing of transactions.
EDUCATION AND BACKGROUND OF OUR STAFF
Columbia Business School
San Jacinto Seminary
University of Michigan
University of Southern California
PRIOR WORK AFFILIATIONS
Aetna real estate
Avanti Properties Group
Council Rock Partners
The Yarmouth Group
COMMUNITY AND INDUSTRY AFFILIATIONS
American Red Cross
Boy Scouts of America
Mortgage Bankers Association
Real Estate Cabinet
Shelter for the Homeless
The Urban Land Institute