Case Studies
Brewerytown Apartments, Philadelphia, PA
Linden Lane Structured Capital (LLSC) closed on a $4.8 million preferred equity investment for the redevelopment of a 162-unit project located in the Brewerytown neighborhood of Philadelphia, PA. The existing 6-story building was being gut rehabbed into loft-style apartments. Additional funds were required for the retail buildout. The investment was out for approximately 2 years and paid a mid-teens IRR. Sponsor recourse was provided to solve for a complex, over-levered capital stack. LLSC’s knowledge of the local market, familiarity with the asset, and knowledge of the sponsor provided a competitive edge.
Situation
Strategy
W Hotel, Atlanta, GA
Linden Lane Structured Capital (LLSC) purchased at a discount a $15 Million mezzanine loan (last dollar – 66% of cost) on an existing 237-key hotel. The face yield on the note was a single digit yield. Due to the discount and quick payoff, investors received a mid-teens yield. LLSC’s deep relationships with major commercial bank trading desks, hotel experience and ability to close quickly provided a significant competitive edge.
Situation
Strategy
University Grande Apartments, Hammond, LA
Linden Lane Structured Capital (LLSC) originated a $6.1 million preferred equity investment for a ground-up student housing development in Hammond, LA. The loan was originated in July of 2019 and was repaid 2 years later. Pricing was low double digits; last dollar funded equaled 83% of cost. The project was built in 12 months, quickly fully occupied but repayment delayed due to COVID market concerns. Significant value was created quickly, reducing our last dollar of LTV exposure to approximately 55%. “The loan was paid fully current every month and the yield was exceptional for the risk.
Situation – Experienced sponsor seeking accretive preferred equity for a ground-up, student housing deal in a tertiary market.
Strategy – LLSC recognized the sponsor as being extremely strong financially and professionally. Though a small university town, Freddie Mac and Fannie Mae would lend and size a take-out loan in excess of our exposure.
Results
Property stabilized in 12 months at a value equal to LLSC last dollar of risk at 55%. Deal level IRR 14%+.
MTP Hotel Portfolio, N.J. & PA
lender. LLSC’s disciplined approach to investing secured not only a great return but avoided a significant loss of time and money.
Situation
Strategy
The Edge at College Hill, Providence, R.I.
Situation – Sponsor required additional dollars to cover construction cost overruns on a stabilized student housing property
Strategy – LLSC put a 2nd mortgage on the property recognizing that its last dollar of risk was 70% of value in highly desirable, difficult to build northeast student housing market with great universities.
Results
The Airdrie at Paoli Station
The Airdrie at Paoli Station is a 154-unit multifamily community adjacent to the Paoli Train Station on Philadelphia`s Main Line. The 7-acre property formerly held four functionally obsolete office buildings. Stepping in after several developers is failed, the Principals of Linden Lane worked with the Township and community to transform the run-down site and remake it into a Class A, award-winning community.
Situation
Frustrated Seller – having gone through several national developers who failed to obtain approvals from the township, selected Linden Lane to attempt the development
Strategy
Work with Township and community to produce a quality project sensitive its the surroundings, while at the same time increasing density.
The Hannah Callowhill
Situation
Strategy
Obtain zoning approval quickly and design engineered the building for high quality / cost effective construction
Gettysburg Village Festival Center
Gettysburg Village is a greenfield development of a 268,000 SF factory outlet retail shopping center, plus hotel, restaurants and movie theater in central Pennsylvania. Linden Lane principals stepped into a stalled, to-be-developed project by The Boyle Group, replaced an equity partner and added the necessary resources, including direct principal involvement, to complete the entitlements, capitalize, construct and lease-up the project.
Situation