Value-add Commercial & Apartment Financing

Bridge Loans

Park West Consulting Group DBA Park West Capital has significant experience helping mid-level investors with the financing of their real estate investments through the implementation of value-add financing strategies. Since 2007, we have executed hundreds of value-add Bridge Loans and short term interim commercial real estate loans valued at over $200 million on behalf of mid-level clients.

 

  • Value-add: purchase of poorly leased properties or those with substantial near term lease rollover, typically at prices below reproduction costs, then renovating or repositioning them to a stabilized, core status
  • Development: ground-up development of new properties, ranging from strong pre-leasing to speculative development

 

Value-add strategies
Our clients employ the following strategies to help add value to their investments

 

Renovate
Underperforming due to lack of capital investment and/or poor management by prior owner
Properties with functional design that can benefit from upgrading
Capital budget – typically 10% or more of total investment
Achieve LEED® certification if economically viable

 

Reposition
Undermanaged properties that may have below-market rents
Curing deferred maintenance
Improve the quality, diversification, or average lease duration of tenant profile
Capital budget – typically less than 10% of total investment

 

Develop
Experience and track record ranges from land banking/entitlement process through construction/lease-up
Substantially all new construction will be LEED certified
Typically higher risk than renovation and repositioning with opportunities for higher total returns

 

Leasing: The key to value-add success
Securing tenants to lease an upgraded or newly constructed property at or above targeted rental levels is the true test for any successful value-add investment.

 

This update is provided to you by Park West Capital. With over a decade experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 866-289-9607 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.