COVID-19 has undoubtedly caused a major economic shift and many developers and property owners are faced with distressed and under-performing assets with uncertain futures.
Twain offers developers and property owners multiple options when it comes to rescue capital. These financing tools provide a cash infusion to distressed assets in their time of need.
Twain began offering ground lease capital in early 2020. Ground leases are a low-risk way for owners to gain upfront capital in their time of need. With a ground lease, the property owner retains ownership and operational rights to their current or future improvements while making ground lease payments to Twain. This allows the property owner to receive a lump sum payment for a portion of the value of the ground and current or future improvements. Twain’s flexible repurchase options make ground leases a low-risk way for commercial properties to weather the storm.
Retroactive C-PACE financing is another option for gaining liquidity. Retroactive C-PACE provides distressed assets with a much-needed capital infusion. This can be used to pay down senior debt and fund reserve. C-PACE assessments can be capitalized up to 24 months, further helping a project’s near-term cash flow. The use of retroactive C-PACE allows property owners and developers to reduce more expensive debt service and bring in additional capital.
In 2020 alone, Twain Financial has provided over $100MM in rescue capital to under-performing hotels.