Hageman Capital works in collaboration with developers to purchase their Developer Backed Bonds. Our approach converts TIF bond public incentive to 100% equity at construction loan closing. Hageman Capital’s investment process maximizes proceeds compared to alternative financing mechanisms. Many unrated bond transactions are harder to finance than traditional capital structures, Hageman Capital purchases developer backed bonds. By selling TIF bonds prior to completion of construction, financing and interest rate risk shifts away from developers so developers can focus on building a successful project.
Cities and towns can incentivize more projects without risking their own credit rating by guaranteeing bonds. Hageman Capital works with developers to maximize community investment by providing capital on behalf of the municipality. Our structure works in conjunction with developers and municipalities to issue the security directly to our group.
Hageman Capital reduces construction lender’s risk by reducing loan sizes and increasing project equity at closing. Unlike investment grade bonds, single-site tax increment financing bonds has historically been illiquid. Our experience in real estate development and capital markets have created a structure wherein Hageman Capital understands the risks of single-site, developer-backed bonds in the market. Banks and other financial institutions benefits from Hageman Capital because we have designed mechanisms to bridge the gap between debt and equity.
Hageman Capital’s structure increases returns to equity for investors by requiring no capital to purchase or finance the TIF bond. The bond is sold at a “lower cost of capital” than typical equity returns, creating accretive value for the real estate investor.
Current volatility in interest rates has created uncertainty among real estate projects across the country. Hageman Capital developed a solution to lock in interest rates on TIF Bonds. By locking in the interest rate, developers can achieve certainty of bond proceeds prior to closing.
Have questions about our TIF purchase process or want to talk to one of our team members? Contact us below.
Have questions about our TIF purchase process or want to talk to one of our team members? Contact us below.