Loan Workouts / Rescue Financing
Is your commercial property facing financial challenges due to rising interest rates, increasing vacancies, deferred maintenance, or other issues? Need funding to stabilize your asset when selling isn’t ideal in today’s market?
Understanding Rescue Financing
Rescue financing works like bridge equity – a temporary infusion of capital for up to three years – giving your property time to stabilize and return to its optimal value. Our rescue financing solutions provide both immediate relief and strategic leverage for negotiating with senior lenders.
How Our Rescue Financing Solutions Help You
Work with NetLeaseX Capital to explore rescue financing solutions tailored to your needs. Structured as preferred equity and/or debt financing, rescue financing provides an infusion of capital to help you:
- Negotiate more favorable loan terms with your senior lender, such as interest rate reductions, maturity extensions, or limited guarantee releases, to improve cash flow and reduce personal risk
- Fund operating deficits and avoid mortgage default, protecting your credit and ownership position
- Renovate the property to attract new tenants and increase NOI
- Buy out limited partners or make strategic moves to improve property performance
- Gain leverage in loan workout negotiations, potentially securing release from personal loan guarantees
- Pay down a portion of your senior loan to improve your loan-to-value ratio
- Fund an interest reserve for your senior loan
CALL NOW FOR A FREE CONSULTATION
Why Choose NetLeaseX Capital
As a specialist in structuring rescue financing, NetLeaseX Capital has decades of experience helping borrowers with loan workouts and sourcing rescue capital from our network of investors. We understand the perspectives of all stakeholders and know how to negotiate win-win solutions, including bringing in third-party capital on terms that protect the sponsor's ownership and limit personal liability while still providing attractive risk-adjusted returns for investors.
Finding the right team is critical when your asset is in trouble—we'll help protect your equity during challenging times.
Ideal Situations We Address
We specialize in helping property owners facing:
- Maturing loans in a challenging refinancing environment
- Properties with declining occupancy but strong turnaround potential
- Operating shortfalls requiring immediate capital infusion
- Partnership disputes requiring capital for buyouts
- Value-add opportunities lacking sufficient capital for improvements
- Properties at risk of foreclosure or triggering personal guarantees
The NetLeaseX Advantage
Unlike traditional financing sources, our approach offers:
- Flexibility in structuring deals to fit your specific situation
- Various options for capital stack positioning, from senior to subordinated financing
- Creative solutions that benefit all stakeholders
- Speed of execution when time is critical
- Experience navigating complex workout situations with multiple parties
Request a Consultation
Contact us today to discuss your situation in a complimentary consultation. We'll work with you to evaluate all available options and chart the best path forward. To get started, please contact Ron Zimmerman at (513) 621-1031, via online chat on this website, or email him directly at ronz@netleasex.com.
Famcap.com
October 2023
This article discusses how family offices and other sophisticated real estate investors can access NetLeaseX’s platform to freely review NetLeaseX’s pre-screened, “investment-ready” transactions, including rescue financing, preferred equity and co-GP investment opportunities. The article further discusses why NetLeaseX believes that a better way to invest in commercial real estate in today’s market is to provide rescue financing to sponsors, particularly in multifamily.
White Paper
Original: September 2022
Updated: October 2024
This whitepaper discusses how NetLeaseX works with real estate investors to structure investment relationships with “below the radar” high net worth investors, family offices, registered investment advisors, equity funds, and institutional investors to help such investors, including non-institutional sponsors and even new sponsors who lack financial resources, to raise preferred equity so that they can close more deals and earn more fees.
The Scotsman Guide
December 2018
This article gives an overview on how real estate investors can increase leverage by raising preferred equity to fill the gap between the amount an investor can raise in senior debt financing and the sponsor’s equity investment. This article further discusses various ways preferred equity investments can be structured including, for example, creating one or more tiers, waterfall priority order (e.g. A/B structure vs. pari passu), recourse, repayment schedules, control rights, and capital shortfall requirements.
The Scotsman Guide
July 2020
This article discusses how real estate investors may be able to raise rescue financing to cover operating losses and/or mortgage payments during the Covid-19 crisis. Raising rescue financing is especially important for real estate investors who may face substantial liability due to personal loan guarantys if their lender were to foreclose; thus, triggering a forced sale at a fire-sale price.
The Scotsman Guide
August 2020
As a follow-on article to “Throw Out A Lifeline”, this article discusses how rescue financing, in effect, works like bridge equity, a temporary infusion of cash from an investor that well eventually be bought out via refinancing or sale when real estate markets normalize. This article further lists various ways how rescue financing can be structured both as debt and equity investments.