For Lenders
Strong Basis. Proven Operator. Zero Lender Losses.
Financing partners benefit from a disciplined sponsor, favorable cost basis, and a model that has never produced a lender loss.
Structure
Typical Loan Structure
$5M -- $25M
Typical Loan Amount
65% -- 75%
Loan-to-Cost
24 -- 36 months (bridge)
Term
12 -- 18 months funded
Interest Reserve
65% LTV permanent
Stabilized Refinance
Full recourse during bridge
Sponsor Guarantee
Risk
Key Risk Mitigants
Every deal is structured to minimize downside risk while maximizing the speed and certainty of delivering affordable housing to market.
Zoning Secured Pre-Close
Properties are rezoned for multifamily use before acquisition closes, eliminating entitlement risk.
Funded Interest Reserve
12 -- 18 months of debt service funded at closing. The property can carry itself through renovation and initial lease-up.
Day-One Cash Flow Potential
Many acquisitions have existing occupants, generating partial revenue immediately. Renovation is phased to maintain occupancy during upgrades.
Massive Cost Basis Advantage
All-in cost of $60 -- $90K/unit vs. $280 -- $290K/unit for new construction. Even in a stress scenario, the basis provides meaningful downside protection.
Track Record
Sponsor Track Record
2,100+ units acquired and managed
12 communities across the Southeast
3rd largest dedicated conversion operator in the U.S. by units
No lender losses in company history
Experienced operators since 2016
Multiple successful refinances completed
Interested in Financing a 5SCP Property?
We welcome conversations with debt providers interested in affordable workforce housing.