Assembling Property Portfolio for Yield-Seeking Investors

St. Louis is the symbolic gateway to the American West

A Greek consortium approached us for help in designing and implementing a real-estate acquisition program in the United States. The focus was quality multi-family properties able to produce above-average long-term income; the objective was to meet the needs of a buy-and-hold strategy. Our mandate included finding competitive lending sources suitable for an overseas entity—one without a US domestic banking record—given that most major banks were not a realistic alternative at the time.

Solution. We developed a proprietary demographic model for evaluating property locations nationwide, worked with counsel to set up a tax-efficient legal structure, and assembled professional service providers for acquisition expediency. Our efforts included due diligence on the properties, identifying and resolving potential acquisition problems. We acted as the domestic ombudsman for our client on a wrap-around basis.

Summary Points

Capital Structure. We worked to identify the most competitive sources of capital for the overseas group, ensuring know-your-client criteria were smoothly met. The consortium had no heritage in the commercial mortgage business in America. Part of our responsibility was to structure bank introductions and manage the early stages of the bank relationships, meeting with financial entities on our client’s behalf. We partnered with our client in developing an optimal capital structure.

Follow-Through. We closed on two properties: one on the Eastern Seaboard and another in the Midwest. We advocated for our client in other negotiations nationwide. In tandem with these efforts, our client built a boutique wealth-management organization in an offshore location to prepare to access the US market on a recurring basis.

Note: This work was completed by our principal at a now-dormant firm. The featured image depicts St. Louis, Missouri, one of the target real-estate markets for the project.

Banner Image: Digidreamgrafix at Can Stock Photo Inc.