Alcova Capital is a private commercial real estate lending firm offering flexible bridge capital for mid-market commercial real estate. Offerings include preferred equity, senior note, B-note and first mortgages. They have a preference for easier lease-up properties and more proximate cash flow, and target $3-30 million loans that show visibility to repayment in 9 to 18 months.
They also offer Opportunity Zone equity investments in high growth markets with investments underwritten on a stand-alone basis and with enhanced upside through favorable tax characteristics, including deferral of capital gains, reduction in capital gains and tax-free returns on investment on a 10-year hold.
Alcova’s relationship-driven approach to lending achieves repeat business with experienced sponsors.
High Level Lending Profiles:
- Loan Amounts: $3-30 million
- Loan to value: Typically 50 to 75% on loan size of $3-30 million and < 85% on an investment size of $3-20 million
- Lending terms: 12 to 18 months with extension options. Typically 12 to 36 months (can be tied to term of senior debt) plus extension options.
- Markets Existing markets include Atlanta, South Florida, Las Vegas, Los Angeles, Nashville, Greater New York City, Philadelphia, Phoenix, Reno, Salt Lake City and San Francisco
- Property Type: A & B quality assets across all property types with a focus on multifamily, student housing, residential master plan and industrial
Recently Closed Deals
- Mixed-use: In August 2021, Alcova closed on a $6.25 million first mortgage loan for a 24-acre mixed-use development site in Phoenix, Arizona. The loan financed land acquisition and pre-development of the site, which is located adjacent to 1 to 10, in a prime location surrounded by a mix of commercial and residential development.
- Multifamily: In January 2021, Alcova’s $15 million loan financed the acquisition of a portfolio of six multifamily properties in Philadelphia, PA. The portfolio contains 156 market rate units and a development site, and is located in a section of Northeast Philadelphia with a low housing supply and -3% vacancy rate.
- Student Housing: Also in August 2021, Alcova financed the recapitalization of a 2.75 multifamily development site adjacent to the University of Nevada’s campus in Downtown Reno with a $8.25 million loan. Located in an Opportunity Zone, the site will become a 277 unit, 619 bed student housing project, complete with fitness center and pool.