CSV Capital, LLC, is a $400 million mezzanine and preferred equity venture, which has been established between Carlton Strategic Ventures and one of the country’s largest insurance companies.  CSV Capital is a proprietary lending platform that will provide capital between 65% - 85% of the capital structure for cash flowing properties across the country.  In addition, the venture will also acquire secondary market b-notes, mezzanine and preferred equity loans.   

Because of CSV Capital’s low cost of capital, we intend to provide mezzanine capital to borrowers (on a risk-adjusted basis) at a less expensive rate than most of the “high temperature” mezzanine providers in the market today.  Leading this venture is former Citi senior investment banker, Ken Spears.  Ken has closed billions of dollars in balance sheet, mezzanine loans and preferred equity.   

The general lending parameters of CSV Capital are as follows:

• Loan amounts of $20 - $50 million per individual transaction, and up to $150 million per transaction for large portfolios
• All asset types (except hotels will only be considered if included in a portfolio of diverse assets)
• 65% to 85% LTV
• Term of 2- 5 years preferred, but will consider longer terms up to 10 years
• Primarily floating rate loans, but fixed rate loans will be considered on a select basis
• Minimum DSCR of 1.1x (inclusive of reserves)
• Location: primary markets throughout the United States

During the on-going credit crunch, most, if not all, borrowers have felt the affects of tightening in the capital markets, through both lower leverage and more expensive debt.  This has lead to the need to contribute more equity to close transactions.  Even well capitalized borrowers with strong cash flowing assets find it difficult in today’s market to find capital north of 65% LTV. Through this venture, CSV Capital aims to provide a much needed source of liquidity for borrowers in the higher leverage range of the capital stack at a lower cost than is generally available.

 Please feel free to call me at 212 716-5609 or e-mail me at kspears@csvcapital.com for additional information.