Investment Strategies

A differentiated origination and asset management platform

(opens in a new tab)
OUR INVESTMENT PROCESS

How our direct origination and asset management platform works

01

Sourcing, Underwriting, & Due Diligence

Debt Reserve Capital sources high-potential opportunities from sponsors, banks, and brokers. Our team evaluates financials and creditworthiness, as well as the property’s value, location, and capacity for income generation.

02

Loan Structuring & Legal Documentation

Based on our analysis, Debt Reserve Capital determines the terms of the loan, including interest rates, amortization schedules, loan-to-value ratios, and more. We aim to mitigate loan risk with the appropriate structure, which includes guarantees, escrow accounts, and other forms of tangible collateral. Once terms and conditions are finalized, our team prepares and reviews all necessary contractual arrangements.

03

Loan Servicing, Monitoring, & Compliance

Once the loan is signed and disbursed, Debt Reserve Capital will manage all ongoing asset management tasks, including payment collection, management of escrow accounts for taxes and insurance, and compliance with loan covenants. Debt Reserve Capital closely tracks the property’s performance throughout, verifying that all loan terms are met and that the property stays a viable investment.

04

Regulatory Compliance & Technology

Compliance is always top of mind for us. Our in-house compliance team aims to stay current on all applicable local, state, and federal regulations, carefully tracking sponsor adherence. Our team also harnesses best-in-class software and data analytics for underwriting, portfolio management, risk assessment, and market research.

INVESTMENT STRATEGY

Commercial mortgages

Debt Reserve Capital’s tailored commercial mortgage loans seek to provide diversification and enhanced risk-adjusted returns for our clients. We offer a range of flexible investment term and rate structures for bespoke liability-driven investing.

Debt Reserve Capital’s tailored commercial mortgage loans seek to provide diversification and enhanced risk-adjusted returns for our clients. We offer a range of flexible investment term and rate structures for bespoke liability-driven investing.

Target Lending Guidelines:

Product Type:

Senior Secured Lien with limits on additional financing

Property Types:

Data Centers, Self-Storage Facilities, Industrial, Multifamily, Mixed Use, Select Life Science and Select Retail

Preferred Loan Size:

$15 million to $350 million

Term:

Fixed Rate: 2 to 20 years, Floating Rate: 2 to 7 years

LTC/LTV:

Up to 70%

Structure:

Fixed Rate: Yield maintenance with customized prepayment options available, 60-day rate lock at application
Floating Rate: 12 to 24 month lockout, SOFR cap required

Markets:

Primary and select secondary U.S. markets

INVESTMENT STRATEGY

Credit tenant loans and digital infrastructure financing

Debt Reserve Capital crafts specialized solutions for projects anchored by high-credit tenants. With fully amortized terms of 20+ years, these loans are used to develop corporate headquarters, grocery stores, key distribution facilities, regional health centers, and strategically located data centers.

Debt Reserve Capital crafts specialized solutions for projects anchored by high-credit tenants. With fully amortized terms of 20+ years, these loans are used to develop corporate headquarters, grocery stores, key distribution facilities, regional health centers, and strategically located data centers.

Target Lending Guidelines:

Product Type:

Senior secured lien

Preferred Loan Size:

$10 million to $350 million

LTC/LTV:

Up to 100%

 

Term:

10 to 30 years

Credit Types:

Corporate: public and private
Municipal: city, county, state, and federal
Not-for-Profit: colleges, universities, not-for-profit hospitals, and museums

Lease Type:

Triple Net Lease, Double Net Lease, and Gross Lease

Asset and portfolio management

Our in-house asset and portfolio management capabilities combine decades of expertise, advanced analytics, and a proactive and efficient approach to investment management. Through strategic investment decisions and risk mitigation, we aim to optimize portfolio performance and returns.