WEDGEWOOD INVESTMENT GROUP

 

Wedgewood Investment Group is an investment banking entity, headed by founder and CEO Rudy Trebels and headquartered in Northfield, Illinois.

 

Wedgewood, founded in 2009, is today one of the largest and most successful commercial real estate investment firms in the Midwest, with a focus on the funding and development of senior living communities. 

 

Competitive Excellence in Lending

 

Rudy has led the company since its founding and established a tradition of competitive excellence with the design and delivery of Wedgewood financial products, including construction loans, mortgages, mezzanine loans, bridge and equity capital.  For middle-market companies, Wedgewood assists in financing business operations, recapitalization, and the development and acquisition of prime real estate assets necessary for market growth.

 

Under Rudy’s leadership, his team has completed more than $1 billion in transactions serving more than 100 lenders and investors, helping hundreds of companies across the nation achieve their growth goals.

 

Wedgewood's premier focus is the senior living investment industry and the company has an additional $1 billion in assisted living, independent living and memory care development projects in its pipeline.

 

Through these transactions, the company has developed and maintained strong relationships with community and regional lenders, international banks as well as domestic and international investors. 

 

The management team has an extensive track record of its own as owners, operators and developers of commercial real estate in originating mortgages as well as in managing real estate. 

 

Wedgewood’s relationships with the lending, mortgage banking, development and asset-management communities has strengthened the company’s ability to execute challenging transactions in diverse market climates while delivering strong returns to investors.

 

Commercial Real Estate Finance

 

Wedgewood offers a range of comprehensive commercial real estate finance options for a variety of projects:

 

Senior Debt:  $200,000 – $75,000,000

Senior debt encompasses construction loans, mini perm mortgages, bridge loans and permanent mortgage financing.

 

Mezzanine Debt:  $1,000,000 – $50,000,000

In many cases, Mezzanine debt appeals to many clients because of its flexibility.  Mezzanine debt allows investors to convert to equity.  This specific type of financing has become an important source of capital for commercial businesses, involving companies with higher loan-to-value ratios.  Mezzanine loans can increase leverage and provide a higher return on investment to the investor/lender.

 

Preferred Equity:  $2,000,000 – $50,000,000

Preferred equity offers an outright ownership position with the potential to earn higher returns.  A preferred equity position also provides benefits for both the owner and the preferred equity holder.  The investor benefits through direct involvement to better protect the initial investment, while the owner benefits through the option to unlock and access trapped equity while securing growth capital.

 

Equity:  $1,000,000 – $50,000,000

Equity is money invested in exchange for ownership in real estate.  When a company raises money by issuing stock, the cash flow generated can then be used for follow-on investments.  New projects can use equity financing for their new opportunities, to offset existing debt or for growth capital.

 

EB-5 Government Program:  $2,000,000 – $50,000,000

The EB-5 program allows funds to be pooled from a large number of immigrant investors in order to make a targeted investment in a new or growing commercial enterprise.  These commercial enterprises invest in local projects to support job creation. 

 

Products and Property

 

Wedgewood provides commercial real estate finance products for new construction, acquisitions, refinancing, bridge financing and distressed property, including:

 

Construction Loans – a short term real estate loan used to finance construction costs.

 

Mortgage Financing – a debt instrument to finance a piece of real estate with a 15-25 year amortization, in exchange for a lien on the property by the lender.

 

Mezzanine Debt – subordinated debt used as a method of financing with characteristics of both debt and equity financing.

 

Preferred Equity – a measurement of ownership in an entity issued as a piece of the total capital stack with a preferred return to the investor.

 

Equity – outright investment in exchange for ownership in an asset.

 

Permanent Loans - long term debt of a specific sum of money that has a maturity date of 36 months or more but likely 5 years or greater.

 

Joint Venture Relationships – a legal agreement in which various parties agree to undertake specific responsibilities to develop and own a specific project.

 

Bridge Loans - known as interim financing to "bridge the gap" and always short term during times when financing is necessary between a sale/purchase and temporary or permanent financing.

 

SBA Financing – long-term financing provided by the Small Business Administration of the United States designed to help start new businesses, acquire existing companies, refinance or enable expansion.

 

EB-5 Financing – low cost/high leverage debt or equity.

 

New-Market Tax Credits - governments may grant a tax credit for specific locations, classifications or industries where the actual amount of real estate taxes owed is reduced, dollar for dollar.

 

Types of Real Estate

 

Wedgewood offers financing on a variety of real estate property types, which include but are not limited to:

 

  • Independent, Assisted Living, Memory Care, Rehabilitation and Skilled Nursing Facilities

 

  • Retail

 

  • Medical office facilities

 

  • Office buildings

 

  • Multifamily

 

  • Mixed use

 

  • Hospitality

 

  • Industrial/manufacturing/distribution facilities

 

  • Owner occupied

 

  • Refinanced or purchased financing of distressed real estate

 

  • Parking facilities

 

  • Self-storage facilities

 

  • Major rehab/value-added projects

 

  • Student housing

 

  • Municipality

 

Senior Housing

 

Since inception in 2009, Wedgewood has been driven to capitalize on the evolving opportunities created in today's dynamic real estate market.  In 2010, Wedgewood identified the senior housing market sector as a natural fit for the company’s unique skill sets.  This market includes independent living, assisted living, memory care and rehabilitation facilities.

 

Wedgewood’s investment strategy balances the needs of capital as well as operations and it structures investments to meet standards of high quality care.  Deep ties within the senior-living investment industry allow Wedgewood to partner with the strongest operating partners, facility managers and development teams in the U.S. and abroad. 

 

Since its beginning, Wedgewood has advised on the funding of both debt and equity transactions in the senior housing industry across a wide range of real estate participants, including investors, developers, owners and operators.  Wedgewood has an active pipeline of investment projects and transactions in the senior-living industry across the United States.

 

Market Indicators

 

Since 2005, senior housing has outperformed other property types on the National Council of Real Estate Investment Fiduciaries (NCREIF) Index in terms of appreciation, income and total return. 

 

During the past seven years - including the recession - the total return for senior housing has been 10.95% compared with 7.09% and 6.95% for the composite index and multi-family only, respectively. 

 

Senior housing and traditional multi-family property types have sustained occupancy better than other commercial property types throughout the period of economic stress (2008-2012).  The senior housing sector has been able to achieve a higher rental rate growth year-after-year than any other commercial property designation. 

 

Many operators have sustained and even increased their communities' net operating income levels, despite a slight senior drop in census due to increased rental rates.  Thus senior housing has offered a greater stability in earnings than other real estate property types since the economic recession.

 

Approximately one million Americans now reside in senior care facilities and this number is expected to double by 2030.  The U.S.  Administration on Aging projects that the 65 and older population will reach 72.1 million seniors by then which amounts to 19% of the entire U.S.  population.  Ten thousand people turn 65 years old every day in the U.S., ensuring continued growth and expansion of the senior housing market.

 

At Wedgewood, CEO Rudy Trebels and his team maintain relationships with developers, operators, lenders and investors who are active throughout the life cycle of senior housing facilities.

 

Value-Added Investments

 

Wedgewood Investment Group focuses on a value-added approach through commercial development projects and sub-performing real estate assets on a national platform. 

 

Wedgewood’s real estate team's experience encompasses all aspects of investment and management, including acquisitions, finance, disposition, leasing and property management.  The company’s real estate investment professionals have hands-on operational real estate expertise that has proven to be critical in closing.

 

The Wedgewood Investment Group strategy targets properties in the pre-development stage and properties for which repositioning and renovation are usually required to stabilize the asset while targeting a higher rate of return. 

 

Wedgewood works in tandem with many investment partners to deliver comprehensive financing solutions throughout the full investment cycle.  The company understands that the success of any partnership relies on mutually aligned goals and incentives. 

 

As a result, Wedgewood structures transactions that are highly focused on the value created within its partnerships.  Wedgewood recognizes that development and management teams are critical to short-term and long-term success.  The company seeks to ensure that clients have access to capital and the financial flexibility needed to deliver strong investment returns.

 

    © 2016 Wedgewood Investment Group LLC