MLG targets low to moderate leverage of 60-65% LTC on acquisitions. In real estate, we’ve targeted this range to mitigate risk to the investor.
Our debt on assets ranges, but generally conform to the business plan of an asset. For example, if we are buying a multifamily asset with a renovation story, we may do 7-10 year fixed financing. If we are looking through the merchant lens and reviewing an under-leased retail strip center, we may utilize shorter term financing as we would be seeking to fix a problem and then exit the asset in short order.
Read: Leverage and Private Real Estate: Finding the Right Balance