The equity funding gap between $2m and $10m is underserved.
Medium-sized infill residential real estate projects, typically requiring between $2M and $10M of equity capital, represent an opportunity that offers superior returns for investors.
Equity Investment by Seville Capital of up to $5 million
Real estate developers may source up to $2 million of equity from Friends & Family sources, and institutional capital typically makes larger investments over $10 million.
The gap between $2 million and $10 million represents an underserved niche market for equity capital. Seville Capital is strategically positioned to target investments of up to $5 million, where abundant opportunities exist.
Typical Capital Stack
Seville Capital invests a maximum of 90%, and its development partner invests a minimum of 10%, of the equity required in each project.
Transactions often use approximately 70% senior debt, requiring approximately 30% equity.
When a project reaches its conclusion, senior debt is repaid first, followed by equity, and ultimately profit.
We look for development partners with values aligned with ours, a solid reputation, and a successful track record (housing type and market).
Ground-up or adaptive reuse projects with shorter investment horizons are preferred. Ideally, we look for a horizon of one to three years per project.
Seville Capital invests in residential townhome, condominium and apartment projects.
We consider the project budget; important project terms; capital calls; and hiring of key players. All investment decisions are made by an Investment Committee.
Seville Capital invests in select U.S. markets exhibiting strong population and job growth, from where we can generate superior risk-adjusted returns.
Seville Capital will invest at any point of the development cycle prior to the start of construction. Projects requiring zoning changes or entitlements are considered, but fully-entitled projects are preferred.