About Us
About Us

Investment Criteria

RiverBanc provides capital structured under various legal formats, subject to the unique attributes of a given transaction and goals of the project sponsor. We typically provide capital in one of four ways:

  • Joint Venture Equity
  • Preferred Equity
  • Mezzanine Debt
  • Ground Lease Acquisition
products infographic

Joint Venture Equity

  • RiverBanc will invest directly in a property on a pari passu basis alongside an experienced, high quality operating partner
  • We can provide up to 95% of required equity (after senior debt)
  • Operating Partners earn an incentive fee over a 10% hurdle rate, commensurate with equity co-investment
  • Seeking middle market properties between $15 million and $75 million in value with opportunity for value enhancement through capital improvements, improved management or improving market dynamics
  • Focused on the southeastern quadrant of the US (Maryland and south, Texas and east)

Preferred Equity & Mezzanine Debt

  • Supplemental capital in conjunction with new or existing bank, conduit or life company senior financing
  • Focus on middle-market properties requiring subordinate debt in increments as low as $3 million, with no upper limit
  • LTVs up to 90%, minimum 1.05x DSCR
  • Current pay rate of 8% to 13% with lookback IRR of 12% to 15%
  • 2 to 15 year terms
  • Generally non-recourse
  • Mezzanine loans are secured by the special purpose owner of a property and documented through a loan agreement
  • Preferred equity is structured as a senior equity interest in the special purpose owner of a property, and documented through an Operating Agreement

Ground Lease Acquisition

  • RiverBanc will acquire the ground under an income producing property as an alternative form of equity capital investment
  • The ground lease generally represents no more than 50% of the fee simple property value and utilizes no more than 20% of gross property income
  • Cap rates of 6.0% and up provide positive leverage on the remaining leasehold asset, especially in conjunction with value-add situations or hospitality properties
  • RiverBanc's lease is unsubordinated, 99 years in term, senior-debt friendly, and may offer a purchase option to the leasehold estate