WHAT WE DO
We get to know hundreds of real estate entrepreneurs every year, mostly by providing them with debt financing through Spring Garden Lending (“SGL”). We see how they work, the kinds of projects they target, and how they operate when things don’t go as planned. This gives us a unique position to identify and support promising developers, and particularly to help them with one of the most daunting hurdles in the industry: access to equity.
We know that raising money in small increments from personal contacts and private investors is tedious and difficult to manage. And for developers who don’t already have extensive networks of investors to whom they can readily turn, the lack of available equity can hamper their ability to grow their businesses.
That’s where Spring Garden Equity (“SGE”) comes in.
PRODUCTS
Amount
SGE can contribute up to 75% of the equity required for a given project, not to exceed $350k per project. Combined with an SGL loan, which can contribute up to 85% of total project costs, this means Spring Garden Capital Group can collectively contribute up to 95% of the total capital required for a project.
Sizing
There is no term on SGE equity contributions – our equity stays in the project until it is complete and sold or takeout financing has been secured. Preference is given to projects that are likely to return our capital in 24 months or less.
Return
SGE sets its return objective on a project-by-project basis during underwriting.
Other
To receive SGE project financing, the project must utilize an SGL loan for debt financing. Projects intended to be refinanced and held long-term must evidence projected debt service coverage to enable a cash-out refinancing at stabilization sufficient to repay the SGE equity contribution and target return.