Equity Funding for Development

MKA Capital Group Advisors, LLC has been providing financing to builders throughout the Western United States since 1987, bridging the gap between total project costs and available construction financing from lenders. MKA’s capital comes to the builder in the form of "mezzanine" notes, which are essentially a subordinated debt instrument for the borrower. MKA has provided approximately $1.5 billion in mezzanine financing for nearly 700 projects.

MKA's mezzanine loans are intended to provide up to 90% of the builder's equity requirement. In a typical ground-up construction project or condominium conversion, the senior lender provides 80% of project costs. The remaining 20% is provided by a combination of MKA's mezzanine loan and the builder's cash equity contribution. MKA's investment is typically secured by a second deed of trust recorded against the project property, limited or full guarantees and other collateral. MKA's investment is repaid as a priority to the borrower's receipt of a return of and on his equity capital, and earns substantial investment returns on a risk-adjusted basis over an average 24-month investment term.

MKA is comprised of seasoned real estate development and investment professionals who are uniquely qualified to understand the nature of and risks associated with real estate development and project finance. MKA's knowledge and understanding of the development business and the real estate markets in which it provides financing, and its extensive use of internal and external professional resources to structure, underwrite, document, and close an investment in a project, allows it to respond quickly to the builder's needs. MKA has funded every commitment for financing it has made and has been flexible and creative enough in its structure to be a valuable part of a well-structured financing program.

Due to its rapid and decisive response capabilities, its ability to perform on its funding commitments, and its knowledge of the real estate markets in which it invests, MKA is the company of choice for builders throughout the West.

MKA acts as the Manager of three investment funds with over $750 million of invested capital.