WhiteStar, from time to time, steps in when traditional bank lenders fail to make a loan. WhiteStar provides Senior Loans in the form of Construction Loans, Bridge Loans and other vehicles that require the lender take a first mortgage on the property.
Preferred Equity, like Mezzanine Loans, are beneficial to the Sponsor/Developer as these funds can be utilized to satisfy a portion of the equity required by the Senior Lender. This type of financing typically has a similar or higher yield than Mezzanine Loans. From the Sponsor/Developer's perspective this type of financing also typically yields a higher return for them.
Mezzanine Loans can be very beneficial to borrowers as these funds can be utilized to satisfy a portion of the equity required by the Senior Lender. This type of financing will typically yield a higher return for both the Borrower and the Lender compared to a Senior Loan.
EQUITY, JV & LP
When the opportunity is right, WhiteStar will make direct Equity investments into attractive developments and value-add deals. WhiteStar also invests in Joint Ventures ("JV") and Limited Partnerships ("LP"). These types of investments provide the highest return but come with the equal risk. Through WhiteStar's underwriting process we find the asymmetry of risk/reward and pursue the deals where this asymmetry is skewed towards reward.