A Niche Lender
Based in downtown Chicago Rothchild Capital Solutions of Illinois is a commercial real estate investment firm and direct niche lender. We deploy and managed our own capital in house under Rothchild Capital Holdings Inc. The firm is managed under an umbrella limited partnership know as the ULP. Our focus is niche lending opportunities in the commercial real estate arena.
The Rothchild team draws from a broad variety of real estate and investment banking experience. Our objective is to leverage an extensive depth of commercial real estate and finance expertise to the benefit of high-quality real estate project's through out the Midwest and Southwest regions.
The Rothchild team has over fifty-five years of experience providing innovative short-term loans, while considering the big picture and the long-term financial needs of our clients. Our custom RE Preferred equity, bridge-exit and senior secured debt products provides the borrower up to three or four years to stabilized with the opportunity to prepare their properties to meet the requirements of permanent long term financing.
We are a niche market private lender. Our real estate focus is special use commercial real estate. Niche lenders are best defined exclusively by the financial products provided and the actual real estate use and business activity. Special purpose or special use properties are best defined as limited or specialized use such as religious buildings, private schools, museums, campgrounds and other specialized commercial real estate that has limited marketability other than its original use.
Our Signature Niche: Our new RE Preferred Equity for Cannabis later stage development. Gary Williams 708-540-1711
We are composed of five separate entities under an umbrella limited partnership known as the ULP.
Rothchild Capital Solutions of Illinois
Rothchild Capital Solutions of Atlanta
Rothchild Commercial Real Estate Holdings LLC
Rothchild Capital Holdings Inc
Rothchild Capital Umbrella Limited Partnership LP
Fast transparent decision process
Preferred equity & debt discretionary capital
leverage ratio case by case
Terms up to 36 months other terms case by case
Reserves & capital improvements
Other capital use subject to borrower needs
Acquisition & AD combination case by case
Early-Stage Assessment Items:
· Executive summary
· Proforma: ability to service and exit
· Use of funds & project assessment
· Standard pro-letter (one page)
· Summary of terms
· Official engagement letter
· Term sheet/commitment draft for review
Since the mid 90"s, Gary Williams, Alan Shelton and Garcia Spaulding has originated, managed and closed more than $25 billion in financial transactions in the Midwest Southwest and Southeast. This includes real estate preferred equity, senior secured debt and a number of custom built bridge loans.
The complexities of real estate finance markets present constant challenges for even the most sophisticated real estate investors. Sourcing capital that offers the right fit and structure in today's environment can be a time-consuming and frustrating task. Rothschild turns confusion into clarity through a customized lending facilities and several specialty products delivered through a build-to-suit approach.
SPONSOR IN THE RE JOURNALS EVENTS JULY AUGUST & SEPTEMBER 2021
Rothchild Capital Group of Illinois (funding platform LLC/SPE)
Key Area of interests: technology AMGV
"Alan Shelton Leverage Lending Solutions"
Many investors are drawn to commercial real estate due to the widespread and secure use of leverage. Commercial real estate lending is typically considered stable due to the real estate market’s low relative volatility. Commercial real estate debt is collateralized by tangible assets and provides investors with the opportunity to receive risk-adjusted returns and obtain exposure to leverage within a broader investment portfolio. Consequently, the real estate debt market is well-established and highly competitive.
While often accretive to returns, debt also has the potential to compound losses. Under normal market conditions, the cost of debt (interest rate) is lower than the rate of return produced by a commercial property asset. Accordingly, investors seek to arbitrage this spread in order to boost investment returns. However, when this spread reduces through either increased interest rates or reduced rental return, the investment’s margin of safety to meet repayment obligations narrows. As higher rates of leverage are used, the potential for outsized gains or losses is increased.
When making investment decisions relating to leverage, an investor must consider whether the additional return generated is sufficient compensation for accepting the related risk. Achieving that balance involves the consideration of the impact on return on equity and the engaged debt level. In the hypothetical case, the investor would receive an additional yield of 68 basis points for accepting the additional risk associated with a leverage increase from 45% to 60% LTV.
Commercial Real Estate Analyst Report
Level one due diligence:
a). cash flow modeling review-third party
b). demographic and or economic analysis review-third party
c). investment loan grade review and equity decision-in house
a). real estate and or project inspection-third party
b). collateral evaluation-third party
c). desktop review with field study case by case-third party
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