Fairchild News

Fairchild Announces the Launch of the FRC Small Balance Lending Platform

 

November 3, 2013

Fairchild is pleased to announce the launch of its small balance lending platform that will serve owners and investors of commercial real estate nationwide. FRC’s three prong approach provides a comprehensive solution to lower cost short term bridge lending, just missed bank style lending, and conventional long term lending. FRC's competitive marketplace will streamline the loan process, while eliminating inefficiency and providing the best execution in loan placement

 

 

Fairchild Announces the Launch of CapLinx,™ A Revolutionary Capital Platform

 

October 3, 2013

Fairchild is pleased to announce the launch of CapLinx™, a revolutionary nationwide capital platform consisting of over 750 fully qualified and well capitalized financial institutions, high net worth individuals and family offices, foundations, endowments, corporate and public pension plans, seeking to deploy debt and equity capital in the domestic markets.

 

 

Fairchild Realty Capital Closes a $800,000 Multi Tenant Office Loan

 

August 30, 2013

Fairchild Realty Capital is pleased to announce the closing of a $800,000 first mortgage loan on a A 9,608 square feet multi-tenant office building in Hilton Head Island, SC.  The Fairchild team worked in conjunction with the Sponsor to overcome the underwriting constraints present within this transaction. Working with variable shorter term leases, non-credit rated tenancy, and an overall shortfall of underwritten cash flows to cover the required loan proceeds, Fairchild worked diligently to structure a facility that exceeded 80% LTV while delivering competitive rate and terms that maximized overall cash flows.

 

 

Fairchild Realty Capital Closes a $5,200,000 Office/Warehouse Loan

 

 July 2, 2013

Fairchild Realty Capital is pleased to announce the closing of a $5,200,000 first mortgage loan on a 250,000sf multi-tenant Office/Warehouse facility in Charleston, South Carolina.The Fairchild team brought exceptional structured finance expertise to this special situation lending scenario. Structuring the loan around credit issues with the reorganization of the existing operating agreement, Fairchild brought the necessary credit enhancement and additional guarantor strength to enhance the overall transaction. In addition, Fairchild overcame valuation constraints with the addition of supporting collateral which greatly improved overall underwritten cash flows. The property’s variable lease terms including 3, 5, 7, and 10 year leases posed a unique situation when structuring a longer term loan. The financing provided additional flexibility to the Borrower with proceeds for cash out, funds for completed and future TI/LC reserves, replenishment of operating reserves, payment of overdue property taxes, and payoff of existing debt. In light of various lending constraints present within this transaction, Fairchild closed a fully amortizing fixed rate loan with favorable terms including a 5 year term, a 4.35% rate, structured with par pricing.

 

 

​Fairchild Realty Capital Closes $1,450,000 Multifamily Loan​

 June 24, 2013

Fairchild Realty Capital is pleased to announce the closing of Oak Tree Apartments,  a $1,450,000 first mortgage loan on a 78 unit apartment building in Ohio. Due to the property's location in the lending averse Ohio market and an out of state Borrower based in California, the financing of Oak Tree Apartments did not fit within conventional lending guidelines.  In addition, the property showed signs of aging and need of renovations and upgrades.  Despite all the challenges present in this transaction, Fairchild overcame all obstacles and closed this permanent, fully-amortizing loan, with competitive terms and sub 5% interest rates.

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Fairchild Realty Capital announces "just missed" bank product for 2013

April 15, 2013

​Fairchild Realty Capital is  pleased to announce its  new program offering  designed to meet the needs of sponsors and developers in terms of long term fixed rate financing. The program specifically targets deals that fall outside of traditional underwriting guidelines for reasons such as credit limit exposures, leverage requested too high, debt service not sufficient and the like. The just missed program has the following enhancements to aid in the approval process. Leverage up to 75% of value and amortizations up to 30 years on the long term fixed rate program. Clients will also respond well to the interest rates which are slightly higher than banks but in the 5-5.5% fixed range. Fixed periods run from 5 to 7 to 10 years and prepayment is an option for all program with limited penalty. In fact, the prepayment of up to 20% per year carries no prepayment at all. Excellent program choice for cash out requests and longer term fixed rates. The program also can be modified to bridge a situation from unstabilized to stabilized by adjusting the rates for risk. Interest only options only for the bridge product.



Fairchild Banking Group Announces Revised Product Offering for 2013

February 6, 2013

 

Fairchild Banking Group (FBG) is pleased to announce its revised 2013 product offering for its banking clientele. FBG provides tailored solutions to its banks including community, regional, and larger institutions who are seeking a definitive competitive edge in the marketplace.  FBG's solid platform lays the foundation for success for any banking institution as it provides innovative product solutions, methods to increase fee income, increase client loyalty/retention, gain a competitive advantage with a differentiated product offering, and join a platform of participating institutions that cross exchange products and services.  Fairchild works hand in hand with all participating banks to customize solutions to assist in attracting new customers, depositors, and client relationships for the long term, increase customer loyalty through a comprehensive product offering, gain access non-competing bank offerings to enhance the bank product profile, and partner with and/or syndicate projects with other participating banks.​

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Fairchild launches its Multifamily and A&D  finance unit 

February 4, 2013



Fairchild Realty Capital through our investment division has structured a comprehensive capital program to address the needs of the multifamily housing and residential subdivision industries. After long break in the marketplace the executive team at Fairchild felt the  the timing to be correct to provide a comprehensive capital solution for this space to include all areas of the capital stack including  equity. The Realty Capital's multifamily and subdivision finance offers senior debt up to 85% LTC on new construction projects including value added renovation. Equity infusions range from $1-10MM  with a typical deal size in $2.5MM area. For Value Added acquisitions, Fairchild has a lowered yield solution starting at 8% to be used independent of our equity or in conjunction with our infusion. The FRC unit will specifically concentrate on offering a total solution to developers who have demonstrated a consistent track record on projects in the southeastern US and Texas. For more information please contact Mark S. Kelley, Fairchild US's managing partner at 843.842.9400





Four alternative lending options for entrepreneurs

​January 3, 2013

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When the  credit crunch began in 2008 it  caused a major shift in which type of institution would accept, approve, and fund small to mid-size business financing requests. During the 2008-2012 time frame. larger banks declined financing at a record breaking pace (almost nine out of ten business applicants were rejected). The lack of financing lead to opportunity for the alternative lending space to gain significant market share. Interesting enough, smaller banks and credit unions during that same period approved nearly half (47.67%) of their business finance requests. In addition to the above mentioned statistics, cash flow lenders including accounts receivable financing groups approved nearly 65% of loan requests from small businesses.



The new alternative lending groups for the new economy in 2013 include:



• Community Banks

• Credit Unions

• Micro Lending Groups

• Accounts Receivable financing groups

Fairchild US, through its specialty finance unit, provides specialized solutions in the alternative lending space to its growing clientele base.  Currently, FUS' specialty finance unit remains focused on designing and offering alternative lending programs to cash craved entrepreneurs in need of capital. Through its vast bank & credit union network, cash flow lending, and micro lending, product offerings, Fairchild is strongly poised to assist in launching the new economy in 2013. For more information on Fairchild's alternative lending offerings, please contact 843 842 9400. 





Fairchild US enters into mezzanine space

​December 12, 2012



Fairchild US is entering the mezzanine or subordinate debt space to alleviate the pressure from commercial loans coming due or rolling over without exit ability.  Commercial related loans that were originated 5-10 years ago are now coming due in record numbers and the trend will continue to escalate for the next two years. Typically these loans would be absorbed back into the conduit space however the loan to value ratios with property income decreases have jeopardized the potential of recapitalization. The mezzanine or subordinate debt structures are the logical answer increasing  the loan-to-value ratio on properties up to 85%. Loans can carry either fixed or floating rates, with terms of 3-15 years. At current rates, coupons would range from 10% to 13%, with origination fees of 1-2%. The collateral can include office, multifamily, retail, industrial or high-quality hotel properties. The targeted internal rate of return is 12-15%.



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The New Economy
​November 12, 2012
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The new economy is taking hold as we see the last of the elections and set up for the next term. Our notion of how investments and the capital markets intersect has also begun to change, by the formation our private capital groups taking the place of more traditional investments and credit lending. As an example, the commercial real estate lending marketplace traditionally dominated by GSA's, Wall Street Conduits and Life Companies has seen competition by non- securitized, private funding sources that require higher yields when funding transactions.

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With the roll over of a large percentage of securitized loans originated in the early 2000's in 2013 and 2014, the private markets will continue to fund the gap.  Privatized types of funding remains on the horizon. These opportunities can make excellent alternative investments if underwritten and fully vetted by a true lending platform. Stay tuned for more information on private and alternative capital from Fairchild and its investment divisions.

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Private Label Trust and Wealth Management Services Launched
October 30, 2012
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Fairchild US, LLC through its affiliated Delaware Trust Company and Banking Partner is now offering banks, registered investment advisory, and select law firms the ability to offer their clients trust services without the cost and expense of implementation and day to day operations.
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Fairchild's "Private Label Trust  and Wealth Management Platform" can be implemented with a simple teaming agreement between our Delaware Trust  Company and the the specific group.  All customer interface will be private labeled to keep marketing and branding consistent with current operations support. For more information on our Private label trust platform please email info@fairchildus.com