Joseph Merrill Capital (JMC) arranges GP and LP passive equity capital for commercial real estate assets in primary, secondary, and gateway adjacent locations nationwide. With a niche originally founded in the equity markets, JMC’s speed and approach of understanding complex ownership structures and executing on structured equity investments adds value to the capital stack for all JMC clientele and transactions.
Passive Joint Venture LP Equity Investments
JMC structures passive discretionary joint venture equity capital for owners and operators of commercial real estate assets in need of acquisition, repositioning and/or recapitalization of equity capital. The structure provides commercial real estate passive limited partners with attractive promote structures to incentivize efficient management of the underlying commercial real estate. Most capital stacks are structured using 70% LP Equity /30% GP Equity up to 95% LP Equity /5% GP Equity. Preferred Equity structuring can also provide up to 90% - 92% leverage on specific assets and portfolios nationwide.
Passive Secondary Equity Investments
JMC structures discretionary equity capital that makes secondary ‘passive’ equity investments into stabilized commercial real estate assets, thereby liquidating or monetizing a portion of the existing joint venture limited partner and co-investment interests without requiring the partnership to dispose of the entire asset in an open market sale. This customized equity structuring is a useful tool not readily available through a traditional commercial bank, and is ideal for commercial real estate properties or portfolios of all major asset classes to: (i) provide existing partners with the ability to replace one or more partnership interests without having to sell the entire asset, (ii) recapitalizing investments, (iii) restructuring balance sheets, (iv) re-deploying capital for new investments, (v) partnership resolutions or specific limited partner divestments due to existing investment durations or equity repatriation needs, and (vi) provide existing limited partners with a highly structured alternative to traditional commercial banks which is designed to maximize investor returns.
Primary Equity Investments
JMC makes principal equity investments into select commercial real estate transactions as well as ‘passive’ GP equity investments into select transactions. JMC will also look at various debt opportunities pending overall yield, leverage, and proposed co-investment partnerships when applicable, and is an active buyer of dpo commercial loan portfolios from commercial banks.