Construction capital for large-scale projects and portfolios.
BEP Capital LLC lends up to 75% net loan-to-cost on large-scale construction. Sponsor equity is committed as a bank guarantee, BEP Capital advances every construction draw, and the structure keeps dry powder in place to finish the build.
Construction lending at institutional scale.
BEP Capital LLC is a large-scale construction lender and a sister company to Boulder Equity Partners, a nationwide commercial real estate lender headquartered in Boulder, Colorado. BEP Capital lends on large-scale construction, single projects and portfolios, at up to 75% net loan-to-cost, on a 48-month term.
The structure is built for control and completion. Sponsor equity is committed to the lender as a bank guarantee rather than spent into the ground ahead of the loan. BEP Capital then advances every construction draw, so capital flows through one set of controls and the sponsor's equity stays in place as dry powder to finish the project. The principals who structure the facility sign it.
75% net loan-to-cost
BEP Capital's net exposure is capped at 75% of construction cost. The sponsor's 25% is committed before the first draw.
Equity as a bank instrument
Sponsor equity is delivered as a bank guarantee or bank instrument in favor of BEP Capital. It is held through the term as security, alongside the deed of trust and customary collateral.
Control of capital flows
BEP Capital advances every construction draw. One source of funds, one set of controls, and dry powder on the side to complete the project.
Institutions the principals have worked with and for across lending, infrastructure, and capital programs.
- Citibank
- Capital One
- Mastercard
- UPS
- U.S. Department of Commerce
- ACS Infrastructure Development
- Dragados
- SENER
- Citibank
- Capital One
- Mastercard
- UPS
- U.S. Department of Commerce
- ACS Infrastructure Development
- Dragados
- SENER
- Scotsman Guide
- MarketWatch
- Forbes
- Yahoo Finance
- Scotsman Guide
- MarketWatch
- Forbes
- Yahoo Finance
- Scotsman Guide
- MarketWatch
- Forbes
- Yahoo Finance
Terms stated the way a term sheet states them.
| Scale | Large-scale constructionSingle project or portfolio. |
|---|---|
| Leverage | Up to 75% net loan-to-costMeasured against construction cost. |
| Sponsor equity | 25% of construction cost, delivered as a bank guarantee or bank instrument in favor of BEP Capital. Instruments are accepted from Tier 1 banks only. Equity may come from the sponsor's own capital or from committed third-party sources. |
| Verification | Mutual, through each side's bank, before the term sheet is executed. The sponsor's capability to post the security is confirmed to BEP Capital. BEP Capital's capital is confirmed to the sponsor. |
| Security | Deed of trust on the project and customary construction loan collateral. The sponsor's bank instrument is held through the term. |
| Disbursement | BEP Capital advances all construction draws, monthly, against the approved budget and schedule. |
| Interest | Accrues on funds advanced. Interest-only through the term. |
| Term | 48 monthsExtensions by underwriting where the business plan supports a longer path to stabilization. |
| Asset classes | Multifamily, hospitality, mixed-use, and most other commercial classes. |
| Markets | Nationwide. Major metropolitan markets preferred. Select secondary markets considered. |
| Sponsor | Experienced developers with the construction team in place: general contractor, construction manager, and architect of record. |
75% net loan-to-cost. Every draw through one lender.
Sponsor equity is committed, not spent.
25% of construction cost is delivered as a bank guarantee or bank instrument in favor of BEP Capital. It is held as security through the term.
BEP Capital advances the go-forward capital.
Every construction draw flows through BEP Capital. The lender controls the flow of funds into the project, and its net exposure stays at 75% of construction cost.
Dry powder to finish.
The sponsor's instrument stays in place for the life of the loan. If a project needs it, that capital is there to complete the build.
Bank-to-bank mutual verification.
A facility of this size runs on verification, not representation. Once terms are agreed, both sides confirm capital through their banks. The term sheet is executed only after everyone is comfortable.
BEP Capital verifies the sponsor.
The sponsor's capability to post the security is confirmed to BEP Capital. That is the one item verified this way. The instrument must be issued by a Tier 1 bank.
The sponsor verifies BEP Capital.
BEP Capital's capital is confirmed to the sponsor. The sponsor knows the lender can fund before the term sheet is executed.
Tier 1 banks only. Examples of acceptable issuing banks for the sponsor's instrument.
- HSBC London
- Barclays
- JPMorgan Chase
- Bank of America
- Citi
- Wells Fargo
From request to first draw.
Request
Send the request package. BEP Capital reviews it against the parameters above.
Pre-underwrite
BEP Capital pre-underwrites the request to determine fit: sponsor, budget, schedule, entitlements, construction team, and the source of the equity instrument.
LOI and term sheet
Where more review is needed, BEP Capital issues a letter of intent first, then the term sheet. Portfolios receive one term sheet per project, structured to close together.
Mutual verification
The sponsor's capability to post the security is confirmed to BEP Capital or its capital partners. BEP Capital's capital is confirmed to the sponsor. The term sheet is executed only after both sides are comfortable.
Closing and funding
Definitive documents are executed with the sponsor's instrument in place. Draws begin at closing and fund monthly.
What a complete request contains. A package with these items moves to term sheet without a second ask.
- Sources and uses, by project and in aggregate
- Construction budget and schedule
- Monthly draw schedule
- Entitlement and permit status for each site
- Land ownership and basis
- General contractor, construction manager, and architect of record
- Sponsor track record on comparable projects
- Stabilization plan with NOI dates by project
- Source of sponsor equity and the issuing bank
The principals who structure the facility sign it.
Matt Gerard
Matt Gerard has developed and executed strategies for projects in excess of $6.5 billion, with a concentration in public-private partnerships, project finance, and large-scale delivery. His infrastructure work includes the LAX Automated People Mover, delivered with ACS Infrastructure Development and Dragados. He has led strategy and execution for the U.S. government and Fortune 50 companies on capital programs and complex, multi-party transactions, and he is an experienced investor in real estate and private credit.
He completed post-graduate work at MIT Sloan in Artificial Intelligence in Business Strategy and holds a master's degree from the University of Southern California and a bachelor's degree, magna cum laude, from Villanova University. He is a devoted husband and father and lives in Orange County, California.
Dan Page
Dan Page has spent three decades in finance and has produced more than $1 billion in financial transactions. He held roles at Citibank Retail Services, Capital One Bank, and MasterCard International, and has worked with regional banks across the country on commercial real estate credit. He founded Boulder Equity Partners as a nationwide lender for bridge, long-term, and construction financing and has led it since.
His commentary on commercial lending has appeared in Scotsman Guide, MarketWatch, Forbes, and Yahoo Finance. He is based in Boulder, Colorado.
Request terms.
Large-scale projects and portfolios. Send the package, or start with a conversation about the structure.
Boulder, Colorado 80303