Senior Debt Program
Sundance Bay’s Senior Debt Strategy provides private financing, construction, and bridge loans to experienced real estate developers and operators. Our investment strategy is predicated on:
- Limited Credit Availability: Conventional lending sources remain under fiscal and regulatory pressure.
- Less Competition and Regulation: Traditional bridge/hard money lenders are localized, unstructured, and carry exorbitant pricing and terms; few institutional bridge/private lending opportunities exist.
- Manageable Default Risk: Implied default rates are mitigated with significant protective equity, property cash flows and adherence to strict underwriting.
We utilize a robust due diligence process to verify that the assets we lend against meet our lending parameters. By partnering with third parties to provide independent market, legal, and title work, we can expedite the approval process with confidence that the proper care and rigor has been applied to each respective lending opportunity.
Our Due Diligence Process
Our team strives to complete due diligence within 1-4 weeks of receiving the loan application so we fund projects in a timely manner.
- Credit score
- Equity in project
- Loan-to-value (LTV)
- Loan-to-cost (LTC)
- Pro forma feasibility
- Use of funds
- Comps and/or BPO1
- Market growth
- Significant risks
Title and Legal Review
- 1st or 2nd Deed of Trust
- Clear title – no tax/mechanic liens
- Outside legal docs
- Interest rate
- Loan term
- Retail sell-out value
- Projected cash flow
- Refinance options
Sundance Bay Debt Strategy
Our debt strategy invests in senior debt opportunities.
Private financing, construction, and bridge loans to experienced real estate developers and operators.
128 current loans in the portfolio across 22 states.
*as of 6/30/2022
Expertise and track record in the Intermountain West and Sunbelt regions
Several of the asset managers on our team have over 40 years of development experience. That’s why we believe our borrowers often consider us more as advisors rather than traditional lenders or capital providers. Over 60% of our borrowers are repeat borrowers.