DALLAS, Feb. 27, 2018 /PRNewswire/ -- Dallas-based HALL Structured Finance II, LLC (HSF) announced today that the company has opened a Reg A debenture offering. The company is seeking to raise $50 million in investments in order to expand its lending capacity to meet the growing demand for construction financing. HSF closed approximately $300 million in construction loans in 2017, and expects to close more than $500 million in 2018.
"In today's lending climate, it is very difficult for borrowers to obtain construction financing through traditional banks. In light of this, HSF has stepped in to fill this void and make it possible for high quality developments across the U.S. to move forward," said Craig Hall, Founder and Chairman of HALL Group, HSF's parent company. "Our hope is that through this public offering, we are able to expand HSF's footprint into more diverse asset types, such as office and multifamily, and continue to make more loans each year to strong projects that would otherwise not be possible."
HSF is offering a debenture with a maturity date of December 31, 2022, bearing an interest rate of 8% paid quarterly. Investments can be made directly or through an IRA account, and the offering is backed by the full faith and credit of HSF, which has been actively lending to the real estate industry since 1995. The minimum investment threshold is $20,000 and investors will have the ability to increase in $5,000 increments. The company earnings and cash flow are currently strong enough to confidently pay the 8% return per year to investors.
Most recently, HSF has primarily financed hotel developments across the U.S., closing 10 hotel construction loans and one multifamily construction loan in 2017. The company expects to see more diversity in asset type over the course of 2018, as traditional capital sources continue to shrink their construction lending practices.
About HALL Structured Finance
HALL Structured Finance II, LLC has been a direct private lender since 1995 and differentiates itself in the marketplace through its extensive real estate and financial expertise and entrepreneurial style. Both of these attributes allow it to respond quickly and creatively in meeting the needs of prospective borrowers. The company is uniquely qualified to take advantage of the current void in the real estate capital markets. The HSF lending program is designed to provide real estate owners, operators and developers with an alternative to bank financing, and is oriented to be a resource to projects that may be underserved by the institutional capital markets. For more information, visit hallstructuredfinance.com.
DISCLAIMER: The material herein does not constitute an offer to sell nor is it a solicitation of an offer to purchase any security. Offers for the sale will only be made to investors who meet the suitability standards pursuant to the HALL Structured Finance II, LLC Offering Circular where permitted by law. Investments in the Debentures are not suitable for all investors. Investments may involve a high degree of risk and should only be considered by investors who can withstand the loss of their entire investment. Prior to purchasing any interest in the Debentures, prospective investors should carefully review the entire Offering Circular, including the "Risk Factors" section, and any supplements thereto. Investors should perform their own investigations before considering an investment in the Debentures and consult with their own legal and tax advisors.
SOURCE HALL Structured Finance
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