Commercial Real Estate Loans & Investment Sales

Structured Finance Industry Expert Moderates Session at Multi-Housing World 2005

San Diego, CA – September 14, 2005 – www.pacificsecuritycapital.com - Pacific Security Capital (“PSC”), a leading commercial real estate investment bank and provider of commercial real estate loans, announced today that Director, Simon Acheson, is moderating a session at the Multi-Housing World Conference, beginning September 12, 2005, at the San Diego Convention Center.

The session, entitled “Structured Finance: Strategies for Effectively Bridging the Gap”, brings together key industry experts to offer guidance on how to find the right structured-financing source for your deal and how to structure it at the best terms.

“With multi-housing sales prices breaking all sorts of records today, it can be difficult to get all the necessary financing from your senior loan source,” said Acheson. “In order to bridge this gap, more multi-housing borrowers are turning to providers of mezzanine debt and preferred equity.”

There is no longer a clear division between debt and equity in the commercial capital markets. Structured Finance allows for the proper blend of debt, equity, synthetic, derivative and hybrid capital in order to resolve particular transactional needs that cannot readily be met by conventional senior financing.

“Understanding how to access and maneuver within the commercial capital markets and effectively leveraging the many benefits of structured finance techniques can be the defining difference in optimizing the scalability and efficiency of your commercial real estate venture,” said Acheson.

Acheson's presentation on "Structured Finance" discusses the various benefits of understanding how to engineer the right capital structure.

Session:    “Structured Finance: Strategies for Effectively Bridging the Gap”
Date:        Tuesday, September 13, 2005
Time:        9 am – 10.15 am
Location:    San Diego Convention Center, CA

To learn more about Pacific Security Capital’s structured finance offerings or its preferred borrower program, PacificEliteTM please visit www.PacificSecurityCapital.com or call 1-800-844-6085
                                                                                                         
About Pacific Security Capital
Pacific Security Capital is a leading commercial real estate investment banking firm providing commercial real estate loans, structured finance, investment sales and advisory services. The combination of direct lending, advisory, intermediary, corporate and professional services, syndication, investment sales and development services consistently allow PSC to rank among the leaders in the industry. PSC is headquartered in Beaverton, Oregon with other offices in major markets in North America and Europe. More information about the company can be found at www.PacificSecurityCapital.com.

For more information about Pacific Security Capital's structured finance offerings, please visit www.pacificsecuritycapital.com or call 1-800-844-6085.

Mike Myatt To Moderate Structured Finance Session at Multi-Housing World 2005

Pacific Security Capital, Executive Managing Director, Mike Myatt, will moderate a session at the upcoming Multi-Housing World conference. 

"Structured Finance: Strategies for Effectively Bridging the Gap"
Tuesday, September 13, 2005
9 am - 10.15 am
San Diego Convention Center, CA

Register for Multi-Housing World at http://mhw.com/mhw/registration/index.jsp

For more information about Pacific Security Capital's structured finance offerings, please visit www.pacificsecuritycapital.com or call 1-800-844-6085.

How to use structured financing to release trapped equity in a single property or entire portfolio

The concept of "Trapped Equity" is a common misconception in today's commercial real estate market. In most cases equity is only "Trapped" if you don't know how to free it up. Granted, the growth of the CMBS market (specifically understanding the impact of securitization as it relates to more uniform and restrictive loan documents and the increased complexity of servicer, sub-servicer and special servicer relationships) since 1996 has made monetizing on the appreciation of an asset more complex, however not at all unfeasible.

Pacific Security Capital's advisory group can assist you in releasing "Trapped Equity" by using anyone or combination of the following strategies:

• Defeasing Assets or Portfolios of Assets; 
• Using Preferred Equity, Mezzanine or other structured finance solutions; 
• Making entity level investments, or; 
• The use of other synthetic or derivative financial engineering strategies.

Authored by Mike Myatt
Executive Managing Director of Pacific Security Capital
Contact Pacific Security Capital today 1-800-844-6085

Filed under: trapped equity structured finance, commercial loans, commercial real estate, preferred equity, mezzanine finance

How to use structured financing to maximize capital formation efforts

Many real estate sponsors view capital formation as the last peice of the transaction to worry about. It is our opinion that a project will come together much better if capital formation drives the deal, rather than the deal driving the capital formation.

Understanding how to maximize the use of all levels of the capital structure through the use of structured financing when financially engineering your next transaction will help you create a successful project. The following items are just a few of the benefits of understanding how to engineer the right capital structure:

1. Use all levels of the capital structure to move up the leverage curve: By using the proper combination of senior debt, subordinated debt and third party equity it is possible to realize leverage well in excess of 90% of total project cost while maintaining control of the investment.
2. Use different levels of the capital structure to prevent project ownership dilution: By using mezzanine financing to fill as much of the equity gap as possible you will lower your overall cost of capital while not being forced to give up as much ownership in the project as you would by closing the entire equity gap with a joint venture equity partner.
3. Negotiating the proper type of equity joint venture can be critical to the financial success of a project: If you move up the leverage curve with the proper combination of senior and subordinate debt the amount of equity needed from outside investors is minimized. Using the right pari-passu, or preferred equity investment structure can leverage the sponsor co-invest to as little as 2% -5% of the project equity requirment while still leaving them with the majority of project ownership.

More information on how to design the proper capital structure is available from Pacific Security Capital.

Authored by Mike Myatt
Executive Managing Director of Pacific Security Capital
Contact Pacific Security Capital today 1-800-844-6085