Address: 132 Lincoln Street, Suite 6L, Boston, MA 02111
States They Lend In: MA, NH, RI, ME, CT, VT
- Bridge Financing
- Foreclosure Workouts
- Partner Buyouts
- Unique Acquisition Situations
- Construction Loans
- Vacant Building Financing
- Financing of Discounted Loan Payoff
- Working Capital Needs
- Condo Conversion Opportunities
- DIP (Debtor in Possession) Loans
Wallace Capital serves a niche segment of the real estate loan market and uses the following parameter for loans:
- Lending Area: Massachusetts, New Hampshire, Rhode Island, Southern Maine, Eastern Connecticut, Vermont (VT Loans more than $1,000,000 only) ACTIVELY LENDING IN NANTUCKET, CAPE COD & MARTHA’S VINEYARD
- Loan Size: $200,000 to $20,000,000
- Collateral Types: Non owner-occupied residential, single family, multifamily, office, retail, industrial, land, hotels, motels, condominium developments, subdivisions and other commercial real estate
- Interest Rates: 10%-15%
- Security: 1st or 2nd mortgages and mezzanine debt (partnership interests)
- Loan to Value: Up to 75%
- Loan Term: 3-24 months (longer terms accommodated through extensions)
- Closing Times: 5-10 business days
- Underwriting: Collateral based lending. Loans are not credit driven.
Joint Venture Equity:
Wallace Capital provides joint venture equity capital to qualified real estate investors and sponsors. We invest in existing and to be built real estate projects on a joint venture basis with property owners and real estate developers. Our typical joint venture structure provides for 80-95% of required equity. Once a preferred return is paid, profits are split with the real estate sponsor on an agreed-upon basis. Our joint ventures also pay market fees to sponsors for development and leasing. Contact Wallace Capital for a joint venture proposal in which Wallace Capital provides equity, guarantors, development expertise or some combination of these for new real estate projects.
Note Acquisition Financing:
We finance performing and non-performing note acquisitions or loan purchases
We provide loans secured by partnership interests or LLC interests of entities that own real estate.
A bridge loan is a short-term loan that “bridges” the gap between today’s need for immediate cash and the final closing of a long term financing, recapitalization or sale.
Bridge loans enable a borrower to complete a purchase or close a transaction in a more timely manner.
Information required for Issuance of Term Sheet and Letter of Intent
- Photos of the property: Please include the inside, outside and the neighborhood.
- Rent rolls if property is currently rented
- Short Executive Summary that includes:
- - Property Type
- Purchase Amount/Estimated value in refinancing
- Requested Loan Amount
- Time Frame - Exit Strategy: (Refinance, Sale, etc.)
- Equity: Please indicate where the balance of funds for this purchase will come from.
Timetable for Closing
- Step 1: Send Wallace Capital the information described above.
- Step 2: Within 48 hours, if your request is approved, we will send you a Letter of Intent and term sheet.
- Step 3: Return the Letter or Intent and the term sheet with a down payment toward the costs of due diligence.
- Step 4: Close the deal. From the time we receive the signed letter and due diligence funds, we can typically close within two weeks. By having the documents listed below prepared ahead of time, a quick closing can be guaranteed.
Documents Required for Closing
- Current signed Financial Statements (less than 6 months old)
- Use-of-Proceeds letter, signed by the borrower
- Current, signed Rent Rolls if the property is rented
- Credit authorization signed by the borrower
- Upon request, prior 2 years tax returns - signed - for all entities and guarantors
- Upon request, Bank Statements
- Appraisal - assigned to Wallace Capital.
- Upon request, opinion letter - Borrower's attorney is to review documents and prepare an opinion letter to Wallace Capital which addresses the validity and enforceability of the documents and the authority of the entity and signers to complete the transaction.
- Insurance Information
- Payoff amounts — A document must be provided from each/all lien holders on the property who will be paid with this loan indicating the payoff amount.
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