144a bond programs offer, 100% LTC or 80% of stabilized LTV, No personal guarantees, no asset verification, flexibility of build-out and value adds, including flexible repayment terms.
Bond and private placement securities funding is a great non-recourse way to finance many type of real estate and non-real estate projects up to 100% LTV in the U.S. and in certain international markets.

In simple terms, a registered securitization is created for the sale of bonds or securities (may vary based upon nature of transaction). These are then sold to pre-qualified investors or Qualified Institution Buyers (BIB's). The offering is wrapped with an insurance policy that guarantees the performance, thus protecting the investors.

While 100% financing sounds attractive, that doesn't mean that it is easy - or that there are no expenses! In general, sponsors should have a minimum of $300,000 liquid capital available for expenses, and the project LTC must not exceed 80% stabilized LTV. Here are the benefits:

Benefits of a Bond Offering:

  • 100% LTC (80% stabilized LTV)
  • No personal guarantees
  • No asset verification
  • Flexibility of build-out, structure and value-adds
  • Flexible repayment terms

Eligible Projects

  • Any stabilized commercial real estate project
  • Acquisition/Construction/Development or Rehabilitation
  • Mines
  • Oil & Gas
  • Energy Projects
  • Non-RE such as technology, pharmaceutical, major business acquisition / expansion

Note: This is NOT good for agricultural, land, churches, special-use,venture capital or similar uses.


Territory:                                        USA & Select International Territories

Loan Amount:                                $10,000,000 to $1B+ (may include hard/soft costs)


Underwriting Fee:                          $250,000+ (increases based upon amount)

Terms:                                            Interest-only or up to 30 years amortized with balloon payment (5 or 7 year)

Interest Rate:                                 4.75% - 7.00% dependent upon underwriting risk.

Points:                                            10 points to issuer + 2 points to lender - paid at time of closing. This includes required securitizatrion fees

                                                       and bond insurance. Points and costs are financed and built into the loan amount.

Third Party Reports:                       Client is responsible, at client expense, for any reports, appraisals and any other type of third party

                                                       compi8lation about the project including expense retainer which is refunded to client at time of funding.

Additional Features

  • Prepayment is allowed
  • Loan can be assumed upon qualified sale
  • No DSCR required minimums
  • Construction periods available up to 24 months

Standard Graco Mortgage submission and review process
Separate underwriting required by bond/securities firm and insurance company.
Financial review of project and sign-off by CPA.
Complete process can take between 3-5 months depending on project and preparedness of sponsor.

*The 144A bond program is a 1990 SEC rule that facilitates the resale of privately places securities that are without public SEC registration. The rule was designed to develop a more liquid and efficient institutional resale market for unregistered securities.

Graco Mortgage also structures PPM, Reverse Mergers, and related finance structures under SEC Regulation D, Section 506, and utilizes licensed/registered securities dealer/brokers when and where necessary.

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