| INVESTMENT SIZE: | $1,000,000 to $10,000,000 Private Equity Investment $10,000,000+ Institutional or Fund Equity |
| PROPERTY TYPE: | All property types considered – stabilized, unstabilized, construction projects. |
| LOCATION: | Institutional Equity: Primarily core markets (24 hour cities) in mainland USA. Stabilized or cash flowing assets in sub markets considered. Private Equity: all markets considered. |
| SPONSOR: | Sponsor must have strong asset management resume in asset class and size, strong credit and strong financials. Please note: From existing client base Lexden may be able to match supporting resumes to the project as needed. |
| INVESTMENT RETURNS: | Depending on the transaction Lexden would seek to obtain a preferred return of 10-12% and equity participation to achieve IRR’s of 15%-28% commensurate with the transaction risk profile. |
| TERMS: | Investment periods between 24-48 months. Investment structures may be in the form of debt, mezzanine debt or preferred equity or a combination as applicable thereof. |
| UNDERWRITING FEE: | 2.0%-3.0% paid at closing. |
| BUY-OUT CLAUSE: | Sponsor typically will have a buy-out clause that they are able to put to Lexden or Lexden’s Investor based on performance hurdles. Lexden will typically have the right to buy-out Sponsor should Sponsor not meet agreed upon performance hurdles. |
| RECOURSE: | Non-recourse to all principals. |
| UNDERWRITER COSTS: | A Retainer Deposit of between $25,000 and $50,000 is typically required to cover the cost of due diligence. Some of these costs may run parallel with senior debt underwriting. |
| TIME FRAME: | Typically 30 days to funding from time of receipt of Retainer Deposit & signed term sheet subject to receipt of all requested documentation in a timely manner, title and legal. |
Submission Requirements:
∙ Written description of project (please include property description, project costs and revenues, sources and uses, 3 year I & E projections).
∙ Digital color photographs
∙ Current financial statement for each principal/guarantor
∙ Project related CV for each principal/guarantor
∙ Purchase contract (if applicable, not required for initial quote)
∙ Three-year historical property income and expense statements (if applicable)
∙ Current rent roll. Rent roll should include tenant names, square footage, lease start/end dates, reimbursements, monthly rents, and vacancies (if applicable)
