A Land Advisors Company
What We Do
As an extension of our clients’ executive teams, we evaluate, structure, and negotiate real estate debt financing and joint venture equity partnerships. With broad institutional capital and principal investment experience, our team delivers on the following attributes:
- Adept at complicated transactions including, entitlement, ground-up construction, partnership recapitalizations and adaptive re-use projects
- Provides a unique breadth of knowledge extending across commercial real estate, residential land and development
- Significant expertise raising and structuring equity from a diverse array of sources, including difficult to access HNW and family office investors
Our ability to understand and convey the complexities of a given real estate project, coupled with our relationships with capital decision makers and insight into investor risk tolerances, elevates the certainty of execution for our client transactions.
The Ranch at Eastvale
$5,000,000
Joint Venture Equity
California
On behalf of Summit Development and two Southern California family office investors, Landmark Capital is pleased to announce the successful closing of The Ranch at Eastvale. Equity proceeds to the joint venture partnership were used to buy-out an equity interest held by Lehman Brothers, extend the escrow period, complete entitlements, and provide balance sheet capacity to close on 76 net acres of land in Eastvale, CA. The development will consist of approximately 2,000,000 square feet of mid-range industrial and commercial space.
Challenge of the assignment included: Capital was required to extend an option period with remaining entitlement risk, precluding most institutional equity sources from pursuing the project. Funding was required within six weeks of being introduced to the project, and due to the large acquisition price, called for two separate investment groups to fund the joint venture.
Solution: Landmark Capital identified two, well-qualified family office investors capable of understanding and assessing an option and entitlement risk profile, as well as developing a large-scale industrial project. Landmark Capital invested significant upfront time with the sponsor to understand the complexity of the transaction and to develop a simplified summary approach to the business plan, enabling investment partners to quantify the risks and mitigants in short order despite a complicated structure and variable entitlement timeline.
“After working to raise “entitlement equity” for over 12 months and encountering a lot of “blank stares” I was fortunate to meet Adam Deermount and Dave Kidder. They quickly underwrote the transaction and introduced me to several smart/qualified equity sources. Landmark had instant credibility with these investors and we were able to close a very complex transaction in 45 days start to finish. I highly recommend Landmark Capital Advisors.” Bryan Bentrott, Principal at Summit Development Corporation.
The Strand
$13,860,000
Senior Debt
California
The Sponsor acquired an unimproved +/- .86-acre oceanfront site on The Strand in Oceanside. The site was previously a hotel, which had been demolished and was entitled for 24 attached condo units, which were not feasible to construct in current market conditions. The business plan was to re-entitle the site for 17 condo flats above an on-grade podium, close escrow contingent upon approval of the entitlements, and build and sell units. The Sponsor successfully re-entitled the site and is currently under construction. Landmark sourced the debt and JV equity for the transaction. Given the podium construction and an average proforma price of +/- $1.5MM per unit in Oceanside, identifying sources for both the debt and equity was a challenge that was accomplished through extensive market research and Landmark’s ability to identify new sources of capital entering the market.
Lake Atlin
$6,200,000
Joint Venture Equity
California
The project was an acquisition of a +/- 9-acre former school site in the Lake Murray area of San Diego. The Sponsor’s business plan was to purchase the site, record a Tentative Tract Map for +/- 50 single-family lots and sell the site to a homebuilder. The residential use conformed to the underlying zoning but there was no map in place when it was purchased. The seller was the San Diego Unified School district and they insisted on a quick close rather than allowing the Sponsor to close upon approval of entitlements. The project is still being processed and on track to receive approvals this year. Landmark sourced the JV equity for the transaction operating in a short time frame, which required a 45-day close of escrow.
Sol Palm Spring
$4,850,000
Joint Venture Equity
California
The Sponsor acquired an unimproved +/- 7.5-acre site in Palm Springs caddy corner to the Palm Springs Convention Center and within easy walking distance of downtown. The site had an existing Tentative Tract Map for 81 attached multi-story units. Recognizing that the product was not feasible to construct in current market conditions, the business plan was to purchase the site, re-entitle the property for 46 single-family detached units, and construct and sell homes. The Sponsor successfully re-entitled the site and is currently constructing and selling homes. Landmark identified a new, emerging capital provider and sourced the JV equity for the transaction in 2012 at a challenging time in the market when there were very few capital providers willing to fund entitlements and vertical construction.
Murrieta 130
$3,660,000
Joint Venture Equity
California
The Sponsor acquired an unimproved +/- 130-acre site fronting Winchester Road in Murrieta. The business plan was to purchase the site, record a Tentative Tract Map for 283 single-family detached lots and 15.7 acres of commercial, and sell the residential lots to a homebuilder(s). Landmark sourced a JV equity partner that quickly identified the strength of the location and the business plan and closed the transaction in a timely manner.
$16,000,000 Beach-Side Mixed Use Project Refinanced
$16,000,000
Bridge Loan
California
Landmark Capital is pleased to announce a successful $16 million bridge loan transaction in Huntington Beach, CA. Proceeds were used to refinance a 29-acre site within close proximity to the Pacific Ocean and immediately inland from Pacific Coast Highway.
Challenge of the assignment:
The lack of entitlements, including a coastal permit requirement, and the former oil storage use, presented financing challenges. The quality of the sponsor, the sophistication of the lender, and the uniqueness of the asset all contributed to a successful funding.
Solution:
Landmark Capital was able to identify a sophisticated lender who would fund on an entitled former oil terminal and execute under a tight timeframe.
$19,500,000 Bridge Loan to Recapitalize Flex Office Building
$19,500,000
Bridge Loan
Texas
Challenge of the assignment:
At the time of closing, a structural remediation program to mitigate foundation movement was only 50% complete. In addition, the majority tenant at the property (85% of GLA) had an open termination option which they could exercise at any time.
Solution:
Landmark Capital identified a lender that was comfortable with the sponsor’s ability to complete the remediation and negotiate new leases with the existing tenants. The financing enabled the owners to partially pay down their equity partner’s capital account to bring down the all-in cost of capital to the transaction.
$6,900,000 Bridge Loan - No Prepayment Penalty
$6,900,000
Bridge Loan
Colorado
Landmark Capital secured $6,900,000 of short-term bridge financing to replace a maturing land loan on a 251-acre site with final plat approval for 329 residential lots in, Douglas County, CO.
Challenge of the assignment:
Secure short-term, non-recourse debt financing to provide the Sponsor with sufficient time to complete: final agency approvals; builder sale documentation; the infrastructure financing plan for the ultimate sale of this 329 lot subdivision. The underlying hard-money loan had less than 60 days remaining without extension options at the outset of the assignment. The Sponsor had existing offers for preferred equity and debt; however, was looking to avoid the proposed prepayment penalties.
Solution:
Having completed multiple bridge loan transactions based on pre-sold lots, Landmark Capital was able to identify a lender who understood the demand drivers of Metro-Denver and the immediate sub-market. Landmark Capital quickly learned the intricacies of the project, enabling the company to present the risks and opportunities in a coherent manner, leading to a successful close.
$14,000,000 Jv Equity Capital Raise
$14,000,000
Joint Venture Equity
California
Landmark Capital sourced $14,000,000 of Joint Venture Equity to finance the acquisition, development and construction of 152 residential units in Oxnard, CA.
Challenge of the assignment:
Persuading a capital partner to invest in a project located in a secondary market with a relatively large number of lots.
Solution:
Landmark Capital had the resources and the collaboration to analyze the opportunity, identify a qualified investor, assemble the relevant market data to support a significant investment in a secondary market, and provide ongoing support to insure a successful close.
“Coming out of the severe downturn, we have been primarily using internal resources to capitalize our projects. It had come to a point, that in order to meet our growth goals, we needed to expand our capital sources to those more institutional in nature. Landmark Capital approached some select institutional candidates and we were able to consummate a deal with a premier residential equity capital provider. Landmark was also able to exhibit that the Oxnard market, which although considered a secondary market, has compelling attributes that make it attractive for an investor.”
Office Campus
Landmark Capital Advisors is pleased to announce the successful recapitalization of a 300,000 square foot office campus in Northern California. Challenges of the assignment included: Heavily concentrated tenant rollover schedule Maturing CMBS loan pay-off was nearly 100% of appraised value […]
The Oviatt Hotel - Bridge Loan
$6,000,000
Bridge Loan
California
Landmark Capital arranged financing for the acquisition of a 117 unit hotel building in downtown Los Angeles, CA.
Portola Center South
$100,000,000
Senior Debt
California
LAKE FOREST, CA—GlobeSt.com has learned exclusively that Landmark Capital Advisors has completed a $100-million refinancing and development loan for Portola Center South, a 626-home community on a 95.5-acre site here. The firm completed the complex transaction on behalf of SunRanch Capital Partners, a partnership between Sunrise Co. and Baldwin and Sons, two private residential community development companies based in the Western US.
Landmark secured senior debt through a bank lender with the intent of providing capital to improve the site and deliver lots to builders in a blue-topped condition. The team representing the client was composed of Landmark’s managing director Adam Deermount and senior advisor Terry Ruckle.
According to Shawn Baldwin, president of Baldwin and Sons, “We made the decision to begin grading, and land development began in June, prior to completing the restructured financing, so that we could meet our development schedules to deliver lots in the first and second quarters of 2016. We have had a very productive relationship with Landmark Capital Advisors, which gave us the confidence to commit to move forward.”
SunRanch plans to begin selling lots to homebuilders by early 2016. The site, composed of five planning areas, will be improved in one phase, taking about seven to nine months. In all, the site will consist of 569 for-sale units and 57 affordable units.
The team notes that a key aspect of completing this transaction is having excellent relationships with a large rolodex of capable lenders, permitting Landmark to identify the best capital source for the deal. Randall Bone, CEO of Sunrise, says, “The landscape of active lenders in large-scale community development has been changing rapidly, and Landmark’s extensive relationships allowed them to deliver attractive and well-structured financing options for Portola Center South. They are a ‘go-to’ source for seasoned development firms with well-positioned projects that are ready to move forward.”
David Kidder, president and managing director of Landmark, says, “We are excited to have executed this transaction on behalf of SunRanch. This project is a great example of our ability to navigate complex transactions and utilize our strong capital relationships to successfully meet our clients’ financing objectives.”
Deermount adds, “The market for large non-recourse transactions is thin, and banks doing large land-development debt deals is somewhat uncharted territory.” He says that Landmark’s strong relationship with the lender allowed it to be able to arrange financing and raise the capital needed to successfully recapitalize Portola Center South.”
Tom Farrell, Landmark’s director of business development, tells GlobeSt.com, “The capital-markets environment for large land development loans remains challenging as most banks continue to shy away from this product type. Landmark Capital, through its vast network of capital sources in the land development space, was able to identify a source and structure a loan that was a ‘win-win’ for the sponsor and the bank.”
As we reported in January, Farrell told us exclusively, “On the debt side, similar to equity, each bank or private lender seems to have their unique comfort zone. We try to match our client’s needs with the debt provider’s focus to insure a greater success rate. We try to save our client’s time and effort by not just shot gunning a project out to many providers who might not have an interest. Narrowing it down to two or three is more efficient and productive for all.”
The Barlow
CBU Student Housing - $33.5MM Tax Exempt Bond Financing
$33,500,000
Senior Debt
California
Assignment: Private University in Riverside needed to recapitalize a multifamily facility adjacent to its campus that had gone up in value when it was converted from market rate apartments to student housing.
Challenges: University had owned the student housing facility for less than a year but was growing quickly and needed to re-deploy capital into other campus construction projects. The University couldn’t refinance into a GSE loan because the project wasn’t yet seasoned as a student housing asset. The University also couldn’t enter into a JV equity deal with an investor due to their tax structure as a not-for-profit.
Solution: The Principals of Landmark identified an east coast lender active in the tax exempt bond financing market which enabled the University to borrow at a higher advance rate and lower cost than they would have otherwise been able to through conventional lenders.
$5,400,000 Equity Placement
$5,500,000
Joint Venture Equity
California
Landmark Capital is pleased to announce the successful capitalization of 46 to-be-built single-family homes and townhomes in Cotati, Sonoma County, CA
Challenge of the assignment included: Gaining a capital partner’s confidence to enter a market considered as secondary by institutional capital providers where transactional data is not as readily available as other markets due to a lack of development in the past 8 years.
Solution: Landmark Capital Advisors identified an equity partner that knew the market, was familiar with the sponsor, and had a relationship with the land seller which helped facilitate the timely close of the transaction.
$28,200,000 Equity Placement
$28,200,000
Joint Venture Equity
Texas
Landmark Capital is pleased to announce a successful recapitalization of a flex office building.
Challenge of the assignment included: The transaction was a recapitalization and restructuring of a legacy tenant-in-common investment that had been in bankruptcy. At the time of closing, the property was approximately 50% complete with a structural remediation program to mitigate foundation movement that was the result of expansive soils and defective construction. In addition, the majority tenant at the property (85% of GLA) had an open termination option which they could exercise at any time.
Solution: Landmark Capital Advisors identified an equity partner that closed all-cash with the sponsors within 3 weeks. The financing enabled the owners to pay off their existing debt, re-commence the remediation work, and fund a TILC reserve to negotiate new leases with the existing tenants. The financing also contained a feature to enable the bulk of the investment to be refinanced out shortly after closing with traditional bridge debt to bring down the all-in cost of capital to the transaction.
$22MM JV Equity for Construction
$22,000,000
Joint Venture Equity
California
Assignment: Private homebuilder in Northern California needed equity to purchase the first phase of finished lots and construct homes in a large, infill subdivision in the City of Sacramento.
Challenges: Lack of comparable infill subdivisions to support new home values, smaller lot and home sizes than preferred by many investors, perception of Sacramento as a secondary market, complicated acquisition structure with the land developer.
Solution: The Company identified an equity investor who understood the challenges of infill development well and had a bullish outlook on the interior Sacramento market. The investor was willing to work side-by-side with the Sponsor to solve some of the structural challenges in the deal.
Met Center 10
The Preserve - $15.7MM AD&C Loan
$15,700,000
Senior Debt
California
Assignment: Public homebuilder client needed non-recourse AD&C debt to purchase and build a 65 lot subdivision in the Preserve master plan in Chino.
Challenges: Builder had a relatively weak balance sheet and credit was impaired coming out of the Great Recession. In addition, the structure of their bonds didn’t allow them to put up a corporate guarantee for any construction loans, making it difficult to obtain debt from traditional lenders.
Solution: Land Advisors Capital identified a regional bank that was increasingly bullish on the homebuilding market in Southern California and had lending officers with extensive experience lending to the publics. The bank was able to underwrite the builder’s balance sheet and got comfortable with the steady improvement that was taking place. The bank was willing to get creative and structure a low advance rate loan with a completion guarantee to a related entity that was to hold a minimum amount of liquidity. They were also able to negotiate loan carve outs that were acceptable to the builder’s bond holders
91 St & McDowell - Bridge Loan
1,275,000
Bridge Loan
Arizona
Landmark Capital arranged financing for the acquisition of 21 acres of unentitled land fronting I-10 in suburban Phoenix, AZ.
Reliant Corporate Center
Cornerstone Ranch
Revelle
$9,000,000 JV Equity Capitalization
$9,000,000
Joint Venture Equity
Washington
Landmark Capital Advisors is pleased to announce a successful JV equity capital raise for phase I of the Green Mountain master planned community in Camas, WA, a suburb of Portland, OR. Proceeds will be used to finance the acquisition and development of approximately 51 acres approved for 201 single-family lots. The overall master planned community is 283-acres with 1,300 SFR lots and consists of a mix of SFR and attached product.
Challenge of the assignment included: Getting a capital partner comfortable with entering a new market where transactional data is less readily available because equity for local homebuilding and land development projects has not traditionally been dominated by institutional investors.
Solution: Landmark Capital, with its affiliated companies Land Advisors Organization and Market Insite, has the unique capabilities and resources to analyze an opportunity, assemble the relevant market data to support a significant investment, identify a qualified investor, and provide ongoing support to insure a successful close.
Grocery Anchored Mixed-Use Center
Landmark Capital Advisors is pleased to announce the successful recapitalization of a 37,047 square foot grocery anchored mixed-use center in Northern California. Challenge of the assignment included: Loan provided both cash out to the borrower as well as good news funds […]
Gracies Place
Alisal Oaks
Industrial Project – Collis Roofing
Landmark Capital Advisors is pleased to announce the successful closing of a non-recourse permanent loan to acquire a portfolio of 3 industrial buildings totaling 86,822 SF of space in Central Florida. Challenge of the assignment included: The transaction represented a single-tenant sale […]
Artisan Palm Valley
Prosperity Business Park
5,200,000
Construction Loan
California
Landmark Capital announces the successful closing of a $5,200,000 construction loan. Proceeds will be used to finance the construction of a 60,000 square foot industrial project with 30 for-sale condominium units located in West Covina, CA.
Golden Hill
Challenge of the assignment included: Client wanted non-recourse financing at a fairly aggressive advance rate. Solution: Landmark Capital was able to source non-recourse financing at 75% LTC.
The Strand
Del Mar Mesa
Curtis Park Village – 12
Litchfield Park
Grapevine
Harmony Lane
Pinnacle Point
Arbor Lane
Preface Seascape
Rancho Cabrillo
Ave 66
X Changer Center
Ave 66
Preface Long Beach
Winchester Hills