FUND STRATEGY
FUND STRATEGY
We invest in commercial debt
Spectra Capital’s investment strategy focuses on commercial debt investments in niche opportunities underserved by traditional lenders.
We have developed deep expertise in analyzing, underwriting, and structuring debt transactions secured by first position mortgages. We have also developed a proprietary network of clients and referral partners which allows us to secure consistent nationwide deal flow.
| Typical Loan Structure | |
|---|---|
| Eligible Locations | Nationwide |
| Focus Areas | Multifamily, Self-Storage, Flex Space, Warehouse, Light Manufacturing, Hospitality, Infill, Mixed Use, Retail |
| Transaction Size | $2,000,000 to $10,000,000 |
| Loan Programs | Construction, Bridge, Acquisition, Refinance |
| LTC/LTV | Generally, less than 52% |
| Security | 1st Lien Deed of Trust or Mortgage |
| Rates | 20%+ |
| Origination Fees | 2-6% |
| Exit Fee | 1% |
| Recourse | Recourse required |
| Repayment | I/O or Monthly P&I |
| Prepayment Premium | 2% |
| Due Diligence Deposit | Upon acceptance of term sheet, borrower to remit a deposit for all third-party reports, legal, and documentation expenses (these can vary depending on the loan request) |
| Loan Term(s) | 3 - 36 months |
| Closing Time | Under 30 days |
| Targeted States | Non-judicial foreclosure states |
| Key Investment Facts | |
|---|---|
| Minimum Investment | $250,000 |
| Asset Class | Real Estate |
| Investor Qualifications | Open to Accredited Investors as defined in Regulation D of the U.S. Securities Act of 1933 |
| Fees | |
|---|---|
| Origination Fees | The first 2% to the GP, split evenly between Fund and Sponsor thereafter |
| Performance Fee | 10% preference, then split evenly between Fund and Sponsor thereafter |
| Details | |
|---|---|
| Legal | Geraci LLP |
| Administrator | Opus Fund Services |
| Auditor | Spiegel Accountancy |
| Sponsor | Spectra Capital, LLC |
| Offer Summary | Ownership units offered under Regulation D / 506 (c) |
| Contributions | Bank wires |