Joint Venture Equity


Joint Venture Equity

Basic Terms: NYMT’s investment must meet the general requirements as noted in its Investment Focus.

Investment Amount+$8.0 million
EquityNYMT will invest up to 95% of required equity
Minimum Return Requirements15.0% IRR on a project level basis
Waterfall StructureNegotiated on a deal-by-deal basis
Acquisition Fee to the SponsorUp to 1.0%
Minimum Return Multiple1.50x with a 2-year lockout
Asset Management Fee1.0% to NYMT, up to 1.0% Sponsor
Investment TermUp to 10 years with buy/sell available after year 2
Senior Loan CarveoutsSponsor to provide carve out guarantees

General Characteristics

NYMT’s ‘Joint Venture’ Equity investment structure has the following characteristics:

  • NYMT’s position is Pari-passu with our partner
  • Partner can self manage or hire an outside property manager
  • Buy/Sell is available to either party after a 2-year lockout
  • NYMT will allow our partner to manage any value-add programs
  • NYMT will be involved in the direction of management of the property up to disposition