REReal Estate
Debt structuring, sponsor returns, acquisitions
Physical collateral with an explicit capital stack. I started with hotel acquisitions in Spain and now do debt structuring at BREIG. I am also interested in the niche corners, historic preservation loans, green loans, and agricultural lending.
Niche structures I follow
- Historic Preservation Loans. Financing for rehabbing buildings on the National Register. The federal historic tax credit covers 20% of qualified rehab costs and many states stack their own credit on top, so the capital stack usually has a tax credit investor sitting next to the senior lender. The deals are slow and document-heavy, which is why I find them interesting.
- Green Loans. Debt where the rate or the availability is tied to an environmental outcome. PACE financing is repaid through the property tax bill and stays with the building when it sells. Green bonds and sustainability-linked loans do something similar at a corporate scale.
- Agricultural Loans. Farm and ranch lending. The collateral is land, equipment, and a crop that does not exist yet, so the underwriting leans on operating history and USDA guarantees through the Farm Service Agency. A different shape of risk than anything in a city.
