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Fund Overview
 

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Investment Criteria

Morrison Street Capital is a trusted source of mezzanine debt and preferred equity under the following general guidelines. Investment opportunities that do not fit within the parameters detailed below will be considered on a case-by-case basis.

 

MEZZANINE & B-NOTE

PREFERRED EQUITY
Property Types:
Multifamily, office, industrial/flex, retail, hospitality; no new construction
Loan Amount:
Generally $3 million to $15 million
Markets:
Nationwide with a preference for top 100 MSAs
Max LTV/LTC:
80% to 85%
85% to 90%
Pricing:

Fixed or floating.
10% to 13%

Overall target return of 13% to 15% through current pay + accrual lookback IRR and/or profit participation

Minimum DSCR:
1.10x combined DSCR
1.00x to 1.10x; may include reserves
Term:
3 to 10 years
3 to 5 years
Amortization:
Interest-Only
Fees:

Fixed-none
Floating-market fee structure

Negotiable
Prepayment:
Yield maintenance/minimum profit multiple
determined case-by-case
Recourse:
Non-recourse subject to market-standard carve-outs
Collateral:
Equity pledge and intercreditor agreement/co-lender agreement
None

 

 
Integrity • Flexibility • Ingenuity

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