In a true partnership approach, Stonemont serves as a trusted real estate financing strategy advisor to its corporate users. The key to this approach is assisting our clients’ finance teams in analyzing lease vs. own scenarios and understanding the real returns on assets over time. Combining this analysis with a comprehensive view of cost of capital and capital allocation, Stonemont customizes the right real estate financing strategy to meet its clients’ needs.
Corporate Users have access to Stonemont’s capital via two main strategies:
Stonemont acquires existing commercial real estate assets from clients, putting in place a new long-term lease and allowing the user to “unlock” capital tied up in non-earning assets that can be redeployed at a higher rate of return in its core business.
Stonemont either enters into a ground lease or acquires a new parcel of land and develops a customized building for the user. Stonemont has the ability to provide a turnkey solution to the user, or work with the user’s in-place team to simply provide the passive capital for the development, subject to a long-term lease.
Using its balance sheet, Stonemont partners with commercial real estate developers to provide up to 100% of a project’s capital need for turnkey build-to-suit solutions. Specializing in office, industrial and retail projects without constraints of geography or project size, Stonemont allows developers to preserve their capital and focus on day-to-day development. Stonemont can work on neutral sites, developer owned or controlled sites, intermodal and industrial park developments.
Stonemont understands the development process first begins with an idea, and that a great deal of planning and diligence is required long-before a shovel is ready to be put in the ground. Our development partners are encouraged to involve Stonemont early in the process to leverage our expertise in working directly with tenants to structure and competitively price projects.
Partnering with Stonemont and utilizing its capital provides developers with the ability to:
ELIMINATE MARKET RISKS
RECEIVE DEVELOPMENT FEE INCOME
CONSERVE CAPITAL FOR FUTURE PROJECTS
PRESERVE BALANCE SHEET FOR ADDITIONAL BORROWING CAPACITY
CONTINUE TO MAINTAIN STRONG TENANT RELATIONSHIPS
ELIMINATE RECOURSE GUARANTEES
The extensive experience of Stonemont’s real estate team in closing complex, structured transactions, provides developers with the accounting and capital markets knowledge needed in today’s environment.