CAPITAL STACK LIVE
Dynamic Capital Stack Optimization & Financing Scenario Engine
Capital Stack
Senior Debt
$7.7M
Mezzanine
$1.5M
Sponsor Equity
$4.0M
Common Equity
$1.3M
Total Debt
$9.20M
63.4%
Total Equity
$5.30M
36.6%
Annual Debt Service
$815K
WACC
5.09%
DSCR
1.16x
Debt Yield
10.3%
LTV
55.8%
LTC
55.8%
Financing Feasibility
DSCR: 1.16x — Does Not Fit (req: 1.25x)
Current project produces 1.16x DSCR. Lender minimum is 1.25x. Maximum modeled loan proceeds must be reduced unless operating income increases or another capital source is added.
This is a modeled assessment, not an actual lender decision.
Capital Gap: $2.00M
Add $2,000,000 preferred equity
Cost: High cost of capital | Risk: Moderate
Increase sponsor equity by $2,000,000
Cost: Opportunity cost | Risk: Low
Reduce acquisition price by $2,000,000
Cost: Negotiation risk | Risk: Moderate
Increase senior debt if underwriting permits
Cost: Higher debt service | Risk: Higher leverage
Add eligible incentive or tax-credit capital
Cost: Low cost | Risk: Low, if eligible
Phase the development to reduce immediate capital need
Cost: Delayed revenue | Risk: Timeline risk