Funding pioneering developments in real estate

Transcription

1 Funding pioneering developments in real estate AltosGroups.com AltosGroups.com Offices in Florida, Mexico, London, Costa Rica, & Panama Toll Free: (888-96Altos)

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3 Altos Geographic Focus CANADA UNITED STATES MEXICO CARIBBEAN CENTRAL AMERICA OTHER LOCATIONS PROJECT BY PROJECT How We Started AltosGroups is the outcome of a process that began in 2001 when Solutions Project Funding, SA, was formed to fund construction and development real estate projects in Costa Rica. Altos has focused on the Commercial Real Estate and Renewable Energy Sectors As a financial broker, Solutions submitted projects to various funding programs. It opened its first direct-funding program in 2005, focusing on real estate resort construction and development, as well as renewable energy in Costa Rica, Panama and Mexico. Expanding to the Caribbean in 2008 and the USA in 2012, our growth, focus on specific sectors/geography, and increasing ability to fund generated the new brand AltosGroups. From the start, Altos has focused on the commercial real estate and renewable energy sectors. Our programs are innovative and competitive. Decisions are made by a team with real world development, management, operations and construction experience supported by the financial resources to evaluate, approve and fund projects. PAGE THREE

4 Altos funds projects that meet specific criteria described in our funding guidelines. We never fund 100% loan to costs under any conditions and always require a cash-down payment at closing. Our funding process begins with our submission form, which gives us a snapshot of the project. If it meets our guidelines, calls and meetings are scheduled to get full details on the project and the borrower. Then we issue a proposal that outlines funding options, our underwriting process, and a stepby-step process to closing. Once we and our client agree on a basic structure, the underwriting process begins to verify the borrower and project, as well as timing and location. This process includes: Business plans Projections for cash flow and construction Construction, management, debt service and exit strategies Advertising and marketing Architectural and engineering schematics Environmental studies Cost control parameters Entitlements Loan-to-costs and loan-to-value The underwriting process ends with site inspections, executing an LOI with conditions to close, and eventually, a final commitment to fund. Closing is What We Do scheduled, and the project commences. We fund projects in sectors including resort, hospitality, multi-family, office, retail, ILF/ALF senior housing, student housing, casino, marina, medical, sports and entertainment-themed projects. Under internal groups, we fund programs for investment-graded clients in the hospitality, sports and resort sectors. Programs include senior debt and joint ventures, for both real estate and renewable energy, under the guidelines available on our website at AltosGroups.com. We also fund corporate and individual programs to refinance existing cash-flow real estate or energy projects, acquire existing cash-flow projects, or build new projects. Our reach extends globally Our primary project territory includes North America, Central America and the Caribbean. However, we accept hospitality and sports sector projects globally. PAGE FOUR PAGE FIVE

5 General guidelines vary, and the funding proposal lists all requirements, costs, terms and conditions. Our program offers: 1 Construction Interest Interest typically accrues through the construction process and is added to the total draws taken. Borrower savings can be 4 6% over institutional lenders. 3 2 Term and Rate Term is matched to the borrower holding strategy whenever possible. Rates may be locked in and fixed or variable. You will find us aggressive in both. 4 Loan-to-Cost Higher than most institutional lenders. We calculate it on a project-by-project basis, with options for both straight debt and joint venture. Joint ventures are reserved for the best of the best projects, usually with extended terms, reduced interest and reduced down payments. Underwriting Common sense approach focusing on the project, the plan and the end goal, not strictly on financial formulas used by banks. REAL ESTATE PROGRAMS We ask ourselves, Is this the right developer/borrower? Do they have the right plan, architecture, location, strategies and background to build and operate a great project? We fund: Projects with a one-time close, construction/perm loan for projects to be built Refinancing of existing real estate with positive cash flow Acquisition of existing real estate with positive cash flow Straight debt and joint venture programs We look at deals that are fully approved and shovel ready or will be in 90 days from closing. Documentation is the key, and verification is the rule. Your ability to supply the documents needed for underwriting, and the quality of those documents will control the time needed to approve and close. Our funding range starts at U.S. $20 million and goes up to whatever is required by a qualified developer on an approved project in one stage or multiple phases, in large mixed-use master plans. Smaller amounts are considered case by case. We focus on all commercial income-producing sectors and will also fund end-unit buyer mortgages in Central America and Caribbean joint-venture resort projects. We have funded mixed-use retail, office, hospitality, assisted living, medical tourism and offshore facilities, multi-family, mixed-use resorts, condos, hotels, casinos, marinas, golf and beach clubs, and more. We typically do not fund pure residential projects in the U.S. We have multiple working relationships with hotel flags, development firms, general contractors and management firms. We can assist you with architectural, engineering, feasibility, master planning and design, as well as legal and inspection services, to name a few. PAGE SIX PAGE SEVEN

6 Sovereign Capital Our focus is on counties, cities, states and nations that are too small for Wall Street, but too big for block grants and other subsidy programs. Schools, toll roads, harbors, refining, transportation, medical, redevelopment, energy and infrastructure needs can be funded by Altos and funding partners that specialize in sovereign debt. Programs offered are based on the investment rating of the sovereign, the term and payment provisions of the contracts or leases in place, the technology, logistics, engineering and environmental requirements, and the form of guarantee offered by the sovereign. Bonds Bond programs are available for most sectors and locations in the U.S.A, on income producing assets and projects. Bond markets are highly regulated so it takes longer for underwriting. Programs combine Altos funding with bond underwriters and institutional firms. RENEWABLE ENERGY PROGRAM Projects to be built, refinancing and acquisition of existing projects in positive cash flow from U.S. $20 million up to U.S. $750 million with larger projects case by case Sectors include any renewable source such as wind, solar, hydro, waste-to-energy and biofuels Bonds can be used to buy, refinance or build most types of incomeproducing assets. Your ability to utilize bonds will depend on the amount, strength and verification of income flow as well as the terms behind it, borrower/firm credit rating, and bond market fluctuation. The funding available for your energy project will depend greatly on: The type and term of your PPA or offtake agreement, minimum monthly income generated, investment grade of the off-taker, loan-to-total costs, feedstock supply agreements, location and risk factors based on geography, technology and legislation Verifiable monthly income from operations, term and type of offtake agreements in hand, and verifiable cashflow history CORPORATE, SOVEREIGN & BOND PROGRAMS Corporate Capital Corporations require funding for many reasons, including expansion, new product marketing, acquisitions, buying the competitor and many others. AltosGroups can bring your company to the capital markets in several ways, and we have the verified funding programs for the underwriting, issuance and successful sale of corporate bonds, capital funding against your corporate stock, or traditional project funding for fixed assets, new facilities, renovation and expansion. PAGE EIGHT PAGE NINE

7 We are very aggressive in rate and term and require lower down payments than institutional lenders or banks. Debt Programs As a direct fund, we often receive 50 to 100 projects per month, and only the best of the best will receive straight debt offers to fund. You must demonstrate that your project is carefully planned, conceived, and that you have the confidence to have invested your own funds prior. All funding programs require a cash down payment at closing by the borrower or third-party investor arranged by the borrower or Altos. We do not fund 100% and most debt programs will fund a maximum of 60% to 80% loan to costs. Joint Ventures Funding via joint venture is going to require, in most cases, your ability to prove staying power to the new funding partner. A lender funding your project will require you to demonstrate financial reserves or ability to complete the project in the event costs increase or How We Do It sales decrease from the projections you provide. As your joint venture partner, Altos will fund from 75% to 90% loan to costs. Joint venture programs typically extend the term of the loan, reduce or eliminate interest, and in international mixed-use resorts Altos will fund end-unit buyer mortgages for condominiums, homes, vacation ownership and others. Using our funds and lines of credit, or combining our funds with other corresponding programs or joint ventures with our equity, AltosGroups is the check writer. We perform processing and underwriting in-house with contract employees and outsource budget, cost verification, appraisals and feasibility studies to third-party professional firms. And of course, we only work with top legal and banking institutions on every proposal. Developer Programs For qualified developers with a group of projects, now or over the next two to five years, Altos can set up a line of credit based on those projects, your financial ability, and our programs, in both debt or joint ventures. Draw schedules that include soft costs, land deposits, zoning, architectural, engineering and other criteria are available to highly qualified partners. Developers, general contractors, manufacturers and others use this program to develop in the assisted living, mixed-use resort/entertainment, hospitality and renewable energy sectors, end-unit buyer mortgages for condominiums, homes, vacation ownership and others. Altos is a hybrid firm, combining the flexibility of private equity with the structure and market presence of a hedge fund. We evaluate projects on: Equity invested prior to funding A convincing business plan, product and documentation for the local economy, price point substantiation and Borrower ability and experience 2 other relevant factors 3 4 Liquidity, down payment and net worth Permits and approvals 6 7 The credentials of the architect, engineers and management involved Inspections, verifications and draw schedules 9 10 Strategies for construction, management, marketing, sales and exit Full location analysis, value and site inspections with third-party verifications Proper structure for the location, mortgage, trust or SPV PAGE TEN PAGE ELEVEN

8 Our Direct Funding process, in brief: 1 Project Submission Borrowers fill out a submission form detailing the project. This snapshot will indicate if it meets general guidelines. 2 Funding Proposal This is the first document we issue to the borrower. This is a non-binding proposal that details one or more funding programs we believe the project qualifies for. It is not an offer, LOI or approval. 3 SITE INSPECTION Once the borrower provides the underwriting documents listed in the funding proposal, our team works through the underwriting. We require a site inspection with the borrower present. 4 Letter of Intent (LOI) Assuming no material issues on the site inspection, we will issue an LOI with intent to fund. 5 Final Approval and Closing Your down payment will either go into escrow with AltosGroups or into an attorney-controlled escrow account created for your project. Draws are disbursed on monthly or quarterly schedules. 6 Funding Process Your down payment is held in escrow and is the last funds going into the project, following the Altos construction loan. PAGE TWELVE PAGE THIRTEEN

9 Groups Our main entity, and your eventual lender or joint venture partner, combining our programs and sectors Focus: Hotels, golf, vacation rental and mixed-use leisure properties and oceanfront resorts. under one brand. Focusing on assisted living, independent senior living Our source of funds, a hybrid structure combining the and memory care projects nationwide. flexibility of private equity/investment banking with a regulated hedge fund focusing on real estate construction and development as well as renewable energy projects. Focusing on both boutique and flag hotels, and concentrating on our nsports Hotel & Fieldhouse Flag, investment grade Flag development owned by Altos and managed by global flag operators, and individual flag or boutique sites for clients. PAGE FOURTEEN

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11 Funding pioneering developments in real estate AltosGroups.com AltosGroups.com Offices in Florida, Mexico, London, Costa Rica, & Panama Toll Free: (888-96Altos)