Joint Venture Equity
acquisition
Joint Venture Equity
Basic Terms: NYMT’s investment must meet the general requirements as noted in its Investment Focus.
| Investment Amount | +$8.0 million |
| Equity | NYMT will invest up to 95% of required equity |
| Minimum Return Requirements | 15.0% IRR on a project level basis |
| Waterfall Structure | Negotiated on a deal-by-deal basis |
| Acquisition Fee to the Sponsor | Up to 1.0% |
| Minimum Return Multiple | 1.50x with a 2-year lockout |
| Asset Management Fee | 1.0% to NYMT, up to 1.0% Sponsor |
| Investment Term | Up to 10 years with buy/sell available after year 2 |
| Senior Loan Carveouts | Sponsor 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