Just Closed: $1.8MM Joint Venture Equity deal in Willow Grove, PA. We are actively providing JV Equity, Preferred Equity, Mezzanine Financing, Second Mortgages and First Mortgages. We closed this deal in less than two weeks and was about to get creative with the structure.
“Marcy: Hi, we’re back on.
Jack: We’re back.
Marcy: We’re going to talk about something different though.
Jack: We just closed a JV equity deal. So what is a JV equity? First of all, I always forget. Like the YouTube, like the YouTube channel, leave your comments, we’ll get back to it. Promise, we try to answer them all. So what is a JV equity deal? Let me tell you. A couple of local operators found a property in Willow Grove, Pennsylvania, suburb of Philadelphia. It was a fantastic property, mixed-use property, stabilized but with upside potential. They went out and got a first mortgage from a local bank. We provided all the equity, the closing costs, and the startup capital. They get a percent of the property; we get a percent of the property. We’re partners with them. They’re going to operate; they’re going to do everything. We’re absentee partners. We put up the equity. This happens a lot in real estate. You know, it doesn’t happen with the small guys. It happens with the small guys as well as the big guys. When you hear about a major building being sold or shopping centers or a mall, there’s often—
Marcy: There’s a couple of people involved in it.
Jack: That’s correct. It’s called the capital stack. There are different players on the capital stack. Usually, we’re the debt, but in this case, we were the JV equity, and we closed the deal very, very quickly.
Marcy: Again, like I think that was four business days.
Jack: Very, very quick. It closed very quickly. We’re perfect real estate partners. Give us a call at 561-221-0900, ext. 103. Check us out at geltfinancial.com. And remember, if you need JV equity, preferred equity, mezz, seconds, we have a mezz deal closing this—
Marcy: Closing next week. Three seconds on three properties in three different states, blanket loan.
Jack: Check us out at geltfinancial.com. Remember when your bank says no, we say yeah. Have a great day.”
Category: Deals Done
Tag: joint venture equity
