Insights
Notes from inside the market
PACT provides exclusive insights from multiple years of experience and relationships built evaluating operators, properties, and plans across the full credit spectrum in Western U.S. markets.
Insights
Notes from inside the market
PACT provides exclusive insights from multiple years of experience and relationships built evaluating operators, properties, and plans across the full credit spectrum in Western U.S. markets.
Insights
Notes from inside the market
PACT provides exclusive insights from multiple years of experience and relationships built evaluating operators, properties, and plans across the full credit spectrum in Western U.S. markets.
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Commentary on California credit, land, and how capital gets structured around both.
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FAQ
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A rent roll reconciled to the leases, abstracts covering expirations, options, termination rights and recovery structure, a rollover schedule by year, historical improvement and commission costs at the property, and a leasing plan naming who executes it.
Tenant improvement allowance, leasing commission, free rent and downtime, all funded by the owner while the space produces nothing. The property's own history of allowances and commissions paid is better evidence of the number than a market survey.
GP stakes proceeds can increase a manager's GP commitment, with some firms using the capital to move from a 3% to a 5% fund commitment according to PACT Capital Partners, though the ownership economics behind that increase are not standard disclosure items in most fund documents.
The risk that leases expiring during a loan term are not renewed or replaced on comparable terms. It affects income, the cost of re-tenanting, and the value of the asset at maturity, and it exists independently of how strong in-place coverage looks at closing.
It states how long the income being underwritten is contractually committed. A high coverage ratio supported by a short weighted average lease term describes income that has to be re-created before the loan matures.