Investment Criteria

Morrison Street Capital is a trusted source of small- and mid-market debt and equity financing. Our investment options include mezzanine loans, B-notes, preferred equity, structured equity, and joint venture equity.

Mezzanine/B-note

Property Types:

All commercial and multifamily property types considered. No ground up development.

Investment Amount:

$2 million to $15 million

Markets:

Nationwide with a preference for top 100 MSAs

Max LTV/LTC:

80% to 85%

Pricing:

Fixed or floating.
10% to 12+%

Minimum DSCR:

1.10x combined DSCR

Term:

3 to 10 years

Amortization:

Interest-Only

Fees:

Fixed: none
Floating: market fee structure

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
Preferred Equity

Property Types:

All commercial and multifamily property types considered. No ground up development.

Investment Amount:

$2 million to $15 million

Markets:

Nationwide with a preference for top 100 MSAs

Max LTV/LTC:

85% to 90%

Pricing:

Overall target return of 11% to 14+% with flexible pay and accrue structures available

Minimum DSCR:

1.00x to 1.10x; may include reserves

Term:

3 to 7 years

Amortization:

Interest-Only

Fees:

Negotiable

Prepayment:

Yield maintenance/minimum profit multiple determined case-by-case

Recourse:

Non-recourse subject to market-standard carve-outs

Collateral:

None

Not all investments will meet each of the criteria described above. We will consider opportunities outside of the parameters on a case-by-case basis.

Sample Transaction Scenarios

PROPERTY/LOAN ACQUISITION

Minimize the amount of equity required at the acquisition of an existing project or loan in order to enhance overall leveraged returns.

EQUITY GAP AT REFINANCING

Bridge the gap between an expiring loan and new lower loan-to-value.

TRAPPED EQUITY

Appreciation and/or amortization have lowered the LTV of an existing loan. Sponsor desires to monetize a portion of the “trapped” equity; however, the existing loan contains an onerous prepayment obligation which complicate refinancing options.

FUNDING RESERVES

Complete capital improvements and leasing programs in order to stabilize project cash flow and enhance value.

PARTNERSHIP INTEREST ACQUISITION

Conflicting hold periods or investor motivations necessitate recapitalizing some portion of the ownership.

Trust and dependability are the keys to any great partnership.

Meet The Team
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Morrison Street Capital, LLC is a wholly owned subsidiary
of Norris, Beggs & Simpson Companies, LLC.

LOCATIONS
4949 Meadows Road, Suite 490, Lake Oswego, OR 97035
1460 Broadway, Suite 16018, New York, NY 10036
503-952-0700


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