All asset classes for development, acquisition and redevelopment for single tenant and near single tenant properties located in the United States. Other properties will be considered on a case by case basis. The following property types are eligible:
Advoca Capital Partners, LLC will invest up to 85% of the cash equity required to finance a qualified project. The Project Sponsor will be required to maintain its development fee in the project and provide 1% cash equity. The development fee will be funded upon sale or refinancing of the project.
Advoca Capital Partners, LLC shall contribute 60% of Total Project Costs less net proceeds from the construction loan.
The Project Sponsor shall contribute 40% of Total Project Costs less net proceeds from the construction loan including a 3% Development Fee.
There will be 100% recourse to the Project Sponsor through completion of the project. There will also be recourse to the Project Sponsor for any construction cost overruns beyond the agreed upon Cost of Project Completion and limited recourse until the project is occupied by the tenant.
A Performance and Completion Bond shall be purchased acceptable to Advoca Capital Partners and the Construction Lender.
The parties including the Project Sponsor, Advoca and the Construction Lender shall enter a Cost of Project Completion Agreement. Such Cost of Project Completion Agreement shall call for an acceptable neutral third party to audit the project completion costs prior to construction and upon Project Completion to verify the final Cost of Project Completion. The Developer shall be responsible for any excess project costs.
Advoca Capital Partners and the Project Sponsor will be entitled to a 12% Preference Return on their Capital Contribution until Project Completion. Such return shall accrue during construction and be added to each joint venture partner’s Capital Contribution.
Advoca Capital Partners and the Project Sponsor will participate in 100% of the project cash flow after debt service and reserves on a pro rata basis to reduce its Capital Contribution after each joint venture partner receives the Preference Return. Once 100% of the developer and Advoca Capital’s contributions have been returned in full, additional cash flow, after debt service shall be shared equally among the partners.