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Structure |
OneCap is a
limited partner in a limited partnership or a member in a limited
liability corporation. The developer is the general partner of a
limited partnership or the managing member of a limited liability
corporation. As an equity participant, OneCap does not place a lien
on the real estate, but rather takes an assignment of the partner or
member's interest in the project. |
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Equity |
OneCap provides, in the form of a lender of
credit or cash, up to 100% of the equity required by a construction
lender. The percentage of equity OneCap will provide is related to
the credit of the tenants and the amount of space pre-leased.
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Guarantees |
In a typical
transaction, the developer provides any guarantees required by the
construction lender. In addition, the developer guarantees the
development costs and construction completion to OneCap |
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Developer's
Fees |
Developer's fee may be drawn on a
pro rata basis during the construction period. |
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Profit
Participation |
The developer's
profits sharing with OneCap is mutually beneficial and occurs upon sale of
the facility and payment of a preferred return. OneCap's percentage
of the profits is determined by the profitability of the project, the
amount of equity required, the credit of the tenants and the time frame of
the investment |
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