Certainty of Execution
Structuring and rate lock protect proceeds
Hageman Capital structures the bond, purchases it with balance sheet capital, and manages the technical work of closing — so the developer can focus on the asset.
- Structuring, closing, and funding managed end-to-end by the Hageman Capital team
- Rate lock — purchase price and rates are locked for the full duration of the bond term a week prior to closing.
The Process
Six stages, from discovery to closing.
Maximizing proceeds starts at discovery and runs through closing. The timeframes below reflect standard execution.
Discovery
Introduction to the developer and the project, understand the real estate project: proceeds potential, and share Hageman Group background in real estate and bond structuring. Timeframe: one week.
Due diligence
Review of the real estate pro-forma and project details, estimate TIF revenues, and discuss Project Agreement, Taxpayer Agreement, and other municipal documents. Timeframe: one to two weeks.
Estimate TIF proceeds
A project deep dive: bond structure review and estimated bond proceeds, rate locking, and direct Q&A with the developer. Timeframe: one week.
Offer on bonds
Preliminary purchase terms, execute on letter of intent, executed reimbursement agreement, and rate lock where applicable. Timeframe: four to six weeks.
Maximizing bond proceeds
Creative structuring to maximize proceeds; final due diligence and checklist items; bond economics, bond documents, and Taxpayer Agreement finalized. Timeframe: set by the municipality and lenders.
Closing and funding
Simultaneous closing with the construction lender. Proceeds funded at closing or on a scheduled future date. Timeframe: set by the municipality and lenders.
Developer perspectives
Working with Hageman Capital through development translates to seamless closings. City by city, TIF terms change and we're working on new projects. I send over bond terms to the team to make sure it's the best deal for us. With good municipality credit, we can utilize Hageman Capital's rate lock, ensuring we have a nice short window to close. We think of HC as a partner because they're providing a liquid financing solution to an asset we've created — it's hugely important.
Antone Najem, Third Street Ventures
All the projects where we're in the process of considering TIF, there's such a requirement on the front end for construction cost that the project just wouldn't go without it. When talking with the executive director of the Development Council that Hageman Capital was going to be buying the bond, he immediately understood our partners and gave us the green light. We know there is 100% confidence that we're going to be able to get to whatever terms we need working with HC.
Erik Dirks, SVP Development, Buckingham
After an initial call and comparing third party monetization options, we decided to work with Hageman Capital because of a more streamlined process. Other alternatives had a longer timeline and felt more difficult. HC made our bond closing and monetization faster than going through a retail process with individual investors.
Andy Lahr, CFO, Onyx & East
In the past we talked to another broker about monetizing our TIF bond. They weren't actually able to buy it — then talking with Hageman Capital, clearly a night and day difference. The knowledge, the structure, and the net proceeds HC was able to deliver were far beyond what the broker was offering. Since then we've never dealt with anybody else.
Tyler Ridge, President, TRG
Direct Purchase
Direct purchase versus intermediated monetization
Monetization through a broker or a construction lender typically nets fewer proceeds, at higher interest rates and over a longer timeline. Hageman Capital purchases the bond directly, for cash.
- Up-front capital at construction loan closing
- More proceeds, less debt — no broker layer
- Municipal process guided end-to-end by the Hageman Capital team
Begin the Process
Discovery begins with a conversation.
Discovery takes about a week. An indicative bond value follows within three.