residential real estate finance company seeking $30 million of debt/equity to provide preferred equity and/or debt capital to national and regional single family real estate developers for land acquisition and development

Industry

Financial Services, Real Estate

Company Type

Real Estate Company – Single Family Developers

Location

Georgia

Size

$30,000,000

Investment Type

Equity

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Helping Great Companies Grow

Overview

  • Seeking $30 million of equity and debt capital
  • Polara Capital (“Polara” or the “Company”) provides preferred equity and/or debt capital to national and regional single family real estate developers for land acquisition and development
  • Robust pipeline of live transactions – locations with strong demographics
  • Short loan terms (12 to 35 months) – projects have established take-out builders
  • Clear loan repayment strategy – lot-takedown contracts with either publicly traded national builders or large regional/local builders with strong balance sheets and substantial construction financing available
  • Typically seek 80% to 90% loan-to-cost, contingent on the strength of the take-out builder(s)
  • Relationships with developers who have development contracts with national and regional builders including the Providence Group/Green Brick Partners, Cal Atlantic, Lennar Homes, DR Horton, Pulte Homes, and Jim Chapman Homes
  • Management has extensive experience and expertise in real estate and finance
Helping Great Companies Grow

Opportunity

The new rules implemented under Basel III have created significant opportunities for non-bank lenders

  • lending in this sector is now extremely challenging for banks
  • limited availability of credit for builders and developers

Under Basel III the regulators created a new category of acquisition, development, and construction (ADC) loans called High Volatility Commercial Real Estate (HVCRE)

  • 150% capital requirement imposed on most banks
  • rules apply regardless of the borrower’s track record, balance sheet, or take-out strategy

Borrowers on ADC projects are generally required to invest a minimum of 20% of the as-completed value in equity; or approximately 25% of the cost

Many banks are requiring ADC borrowers to invest 40% of the cost

Acquisition & Development Loans
Helping Great Companies Grow

Solution/Strategy

Polara Capital specializes in commercial real estate finance from $500,000 to $20,000,000 for real estate investors, developers and businesses.

Polara Capital is a relationship-based company that seeks to understand our clients’ business, develop flexible loan products, and provide reliable execution.

Our team has an array of real estate knowledge in banking, finance, mortgage, development, and small business. We take the time to understand the goals and metrics of each project and assemble a capital stack that will maximize our client’s return.

While we offer all the traditional loan products, our relationships with private equity funds allow us to create proprietary loan products for our clients. Our Commercial Mezzanine, Land Bank, and High Bridge products were developed to allow higher leverage than most bank loans.

  • Constant Innovation
  • Flexible Loans
  • Common sense underwriting
  • Integrity
  • Real Estate Experience
  • Efficient Execution

Loan Terms

  • Loan amounts from $1,000,000 to $10,000,000
  • 80% – 90% loan-to-cost
  • 12-35 month term
  • lot-takedown contracts
    • publicly traded national builders
    • large regional/local builders with strong balance sheets
    • substantial construction financing available
  • Residential single family, 55+, and townhomes
  • Solid takedown schedule
  • Top metro areas considered
Helping Great Companies Grow

Management

Will Colley

Principal and Managing Director

(404) 557-9053

will.coley@polaracapital.com

Mr. Colley is a principal and Managing Director of Polara. Responsible for developer and builder lending, loan product development, and capital relationships.

Hired in 1995 to head up mid-balance commercial lending in Atlanta for Wachovia Bank. At the time, Wachovia had almost no assets in this space. Colley developed relationships with investors and developers in the Atlanta area and built a sustained portfolio of over $50,000,000. The construction-based portfolio was a broad cross section of collateral. Was the top loan producer in this group every year.

In 1999 became a partner in a residential development company.  The company developed residential land, built single-family homes, and built small commercial office buildings.  The company was awarded Best Renovation in 2003 by the Greater Atlanta Homebuilders Association and nominated for numerous high-end single-family projects; won Best Building Restoration by the Roswell Historical Preservation Committee in 2007.

Founder and president of a vertically integrated platform of residential and commercial brokerage, mortgage lending, title services, property management, and construction.  ERA United Realty had over 300 sales associates and over $200,000,000 in annual sales. Was named Power Broker by RIS Media in 2008 and 2009.  ERA United as also named a Top-25 brokerage nationally each year.  ERA United was sold to Coldwell Banker Commercial in 2009.

Bachelor of Business Administration from The University of Georgia and a Master of Science in Real Estate from Georgia State University. Currently, serves on The University of Georgia Terry College of Business Alumni Board.

John Stanforth

Principal

(678) 516-1425

john.stanforth@polaracapital.com

Mr. Stanforth is a Principal for Polara Capital. He is responsible for broker relations, operations, and national sales.

He was the founder and CEO of NCS Mortgage Services; co-founder of Block Mortgage Corporation (an H&R Block company), and Director of Companion Servicing; a $4 billion servicing platform that serviced both agency and non-conforming securitized loan portfolios.

Stanforth has significant experience structuring and issuing mortgage backed securities; issuing over $10 billion of MBS during his career. He began his professional career in public accounting working for both Deloitte & Touche and KPMG. Stanforth graduated from the University of Mount Union and is a certified public accountant formerly licensed in Ohio and Georgia.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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