Parse seeks to lend to, and invest opportunistically in, assets owned by experienced multifamily developers and sponsors.
Investment Type
Debt and non-control structured equity capital
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- Preferred equity
- Mezzanine debt
- Joint venture equity
- Hybrid joint venture equity
- Stretch senior/unitranche loans
- Bridge loans
Investment Criteria
Preferred equity and mezzanine debt:
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- $5.0 – 75.0 million
- Last dollar of exposure up to 95%
- Low-to-mid-teens pricing, scaled to risk
- 1 – 7 year terms
- Non-recourse financing
- Preferred – interest only, all accrual Mezzanine – varies, typically 25% current pay
- Prepayment anytime, subject to minimum multiple
Joint venture equity and hybrid joint venture equity:
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- $15.0 – $75.0 million
- Up to 90% / 10%
- Targeted Return: High teens and up
- 1 – 7 year terms
Stretch senior/unitranche loans:
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- $25.0 – $200.0 million
- Last dollar of exposure up to 80%
- LIBOR + 5.50% – 7.00%
- 1 – 5 year terms
- Non-recourse financing
- Interest: Portion current pay and portion accrual
- Prepayment anytime, subject to minimum interest
Capital Use
- Development of new assets
- Acquisition of existing assets
- Recapitalization of existing assets
- Rescue financing
Property Type
- Multifamily
- Market rate
- Student
- Affordable
- Senior (IL & AL)
- Adaptive reuse
- Mixed-use (Multi 70%+)