Debt
Since 2012, Sundance Bay has actively supported owners and developers as a private lender. We source and asset manage all of our loans though our vertically-integrated team. Sundance Bay offers a range of debt products with a strategic focus on multifamily/residential, industrial, and other commercial properties. Sundance Bay can facilitate senior loans (acquisition, bridge, and construction), mezzanine loans, preferred equity, B-notes, and other structured debt products. Since inception, Sundance Bay has originated over $2.7 billion in loans spread over 450 projects.
Debt
Since 2012, Sundance Bay has actively supported owners and developers as a private lender. We source and asset manage all of our loans though our vertically-integrated team. Sundance Bay offers a range of debt products with a strategic focus on multifamily/residential, industrial, and other commercial properties. Sundance Bay can facilitate senior loans (acquisition, bridge, and construction), mezzanine loans, preferred equity, B-notes, and other structured debt products. Since inception, Sundance Bay has originated over $2.7 billion in loans spread over 450 projects.
Creating Value While Effectively Managing Risk
The unique combination of both development and multifamily operator backgrounds, allows our team to underwrite projects from an equity perspective – while also implementing the constructs and protective measures of a senior or structured debt instrument.
Why partner with Sundance Bay's Debt Strategy?
Streamlined Execution
Conventional banks & other lending sources remain under fiscal and regulatory pressure. Sundance Bay’s Debt Strategy can reduce the ‘red tape” and provide decisions within days vs. weeks.
Flexible Terms and Customized Debt Solutions
Very few institutional private lending opportunities exist, particularly those with a focus on the Mountain West and Sunbelt. We evaluate each investment opportunity based on its own merits. We try to find pricing and structure that is appropriate given the underlying risk, but we strive to find terms that will put our Borrowers/Sponsors in a position to succeed. Sundance Bay has the ability to creatively customize a structure that meets the Borrower/Sponsor needs including lower-leverage senior loans, high-leverage senior loans, and mezzanine loans/preferred equity.
‘Consulting Approach’ to Partnership
We are owner/developers of multifamily and possess a seasoned team of in-house construction/redevelopment experts who understand what it takes to own, manage, develop/redevelop and complete projects. We draw on our experience to set up debt investments for success.
Balance Sheet Lender
We maintain and service all of our loans in-house; we do not sell tranches of the loan nor outsource servicing and asset management. From the time the loan is originated to when it is repaid, Borrowers/Sponsors know exactly who they are working with and who to call if there is an issue. We have a seasoned team of draw managers and asset managers to ensure Borrower/Sponsor draws are processed in a timely manner. We have funded 430+ loans and have never missed a funding date since inception.
Unleveraged Funds
Sundance does not use leverage to increase yield within its funds. Therefore, we are not beholden to others when financial markets become tumultuous. This is especially important in construction finance where stalled draws can lead to failed projects.
Structured Debt & Equity Parameters
Investment Types
Mezzanine Loan, Preferred Equity, B-Note
Loan Amount
$5MM +
Loan Term
Varies; 1-6 years
Eligible Properties
Preference for Multifamily & Industrial
Security
Varies; UCC1, Second Deed of Trust, Pledge with Intercreditor/Recognition Agreement, Other removal rights.
Borrower
Single-purpose entity
Sponsorship
Strong credit, depth of team, and a demonstrated track record in similar transactions
Senior Debt Lending Parameters
Loan Term
3-36 months
Recourse
Limited
Rates
8%-12%
Funding
1-4 weeks
Origination
1.0%-4.0%
Prepayment Penalties
Limited
Loan Size
$2MM-$80MM
LTV
Up to 80%
Footprint
National with strong Mountain West and Sunbelt focus
LTC
Up to 85%
Loans we offer
Finance the acquisition of all multifamily and commercial assets types, including residential subdivisions (horizontal and vertical).
Secure finished lots to enable builders to move forward with vertical construction.
Rehab “value-add” multifamily, office, retail, industrial, and senior living.
Provide construction financing for residential and commercial projects.
Structure multi-phase horizontal and vertical construction financing on large-scale condo, townhome, build-for-rent, and stacked multifamily projects.
Offer office and retail financing for projects with 50%+ pre-leased. Industrial financing is available for spec buildings. Medical office, senior living, hospitality financing is also available.
First position loans secured by high-quality real estate projects.
Consider a range of commercial asset types such as multifamily, industrial, office, retail, medical, and hospitality.
Build creative structures and employ cross-collateralization strategies to help borrowers acquire properties at appropriate LTVs.
- Mezzanine Loans
- Preferred Equity
- Distressed Debt
Loans we offer
Finance the acquisition of all multifamily and commercial assets types, including residential subdivisions (horizontal and vertical)
Secure finished lots to enable builders to move forward with vertical construction
Rehab “value-add” multifamily, office, retail, industrial, and senior living.
Provide construction financing for residential and commercial projects
Structure multi-phase horizontal and vertical construction financing on large-scale condo, townhome, build-for-rent, and stacked multifamily projects.
Offer office and retail financing for projects with 50%+ pre-leased. Industrial financing is available for spec buildings. Hospital, medical office, Senior living financing is also available.
First position loans secured by high-quality real estate projects
Consider a range of commercial asset types such as hospitality, multifamily, office, retail, industrial, and medical buildings
Build creative structures and employ cross-collateralization strategies to help borrowers acquire properties at appropriate LTVs
- Stabilized Commercial Properties
- Lease-up/Non-stabilized Properties
- Opportunistic Purchases
- Distressed Asset or Note Purchase
- Reposition
- Mezzanine and Preferred Equity
