Senior Debt Financing
For existing, stabilized assessor less risky tranches of investment capital that meet underwriting criteria, DMI will provide competitive, longer-term senior debt financing solutions.
Mezzanine Capital is a critical financing source for Develop Michigan projects. DMI will underwrite and provide shorter-term mezzanine capital for higher-risk tranches of a real estate transaction’s capital sources.
Bridge Lending is another critical financing source for DMI projects. DMI will underwrite and provide shorter-term bridge capital during construction periods for capital that cannot be made available until a project is complete, such as tax credits and grants.
Projects of greater scale often involve a very complex ‘capital stack’. For example, the repositioning of an industrial site might require any of the following types of funding: federal brownfield funding, federal infrastructure monies, local participation through tax increment financing, enterprise zone incentives, equity (private or developer), debt (construction loan and long-term financing from commercial banks or the debt markets) and New Market Tax Credits (NMTC). Cinnaire and DFG both have extensive experience in working with and securing capital from federal agencies, which may be necessary to fund portions of projects meeting their respective criteria.
Cinnaire and DFG have very strong relationships with federal agencies such as Housing and Urban Development (HUD), the Department of Commerce, U.S. Department of the Treasury (Community Development Fund Institute – CDFI), the Department of Energy, U.S. Department of Agriculture (USDA) and the U.S. Department of Transportation. These are all departments with funding programs related to the types of projects we anticipate financing. DMI provides substantial added value to the process given its team’s extensive internal capacity to identify, access and structure other external investment dollars. Securing other federal, state, local and foundation dollars for complex projects augments the ability of DMI to close challenging investments and enhances the overall effectiveness of DMI.