Multifamily properties, both apartments and condominiums. Both ground-up construction and value-add acquisition opportunities (e.g., apartment rehabilitation).
A joint venture arrangement (e.g., partnership agreement) utilizing third-party senior debt. Overland usually places its capital as pari-passu equity without priority of return.
$3 million to $20 million per transaction. Typical deal has all-in costs of between $15 million and $100 million.
Typically 2 to 3 year holding period for ground-up apartment or condominium construction projects. Usually 3 to 5 year holding period for value-add apartment acquisition deals.
Typically a single senior lender will provide a 70% to 85% LTC loan. Overland will contribute 80% to 95% of the required equity amount. The sponsor-developer will contribute the remainder in the form of cash and/or the subject land.
Minimum Target Return
Flexible. Preferred returns, developer promote, IRR thresholds and other deal characteristics vary depending upon the transaction risks and amount of partner equity.
4% of Overland’s equity investment amount.
Asset Management Fee
0.15% to 0.20% (of total project cost) per annum, paid monthly.
Major markets in the United States. Prefer submarkets with higher geographic and governmental barriers to entry.
Strong local presence. Multifamily industry specialization; experience as developer and/or investor of multifamily properties. Track record of having successfully and recently carried out comparable business plans as a development or operating principal.