Scroll
We allow a one-time step up on incurred expenses
We anchor the deal and can share in pre - development expenses
We do not participate in more than 25% of the development fees
We help raise LP equity
We do not expect to participate in LP promote from investors outside of our network
| Project Underwriting Parameters | ||
| Ground-Up Development | Value-Add | |
|---|---|---|
| Cimbra Partners Co-GP equity | $3 to $5 million; additionally, we can raise LP equity (flexible on this amount but typically $10 to $15 million) | |
| Target minimum IRR (project level) | 20% | 15% |
| Target minimum equity multiple | 2.5x on build to rent 1.7x on build to sell | 2.0x+ |
| Leverage | LTC up to 70% | LTV up to 75% and DSCR of 1.2x |
| Project hold/life | 5-8 years from start of construction to sale for build to rent; 3 years for build to sell | 5 years (may go longer depending on yield and/or proceeds from a refinance) |
| Other financial metrics | Target 75%+ capital recovery after 36-48 months through refinance (on build to rent) | Yield on equity of 7%+ upon stabilization |