Financing Plan

Proposed Acquisition: 770 Madison Avenue, New York, NY 10065 

Ave Basement Floor : 968.7 First FloorL 1151.7 Second Floor: 1227.1 Third Floor: 979.5 Fourth Floor: 1001Fifth Floor: 1097.8
Loan Type: 6-Month Soft ARM DSCR Loan
Loan Amount: $29,500,000

1. Transaction Overview

• Asset: 770 Madison Avenue, New York, NY 10065
• Purchase Price: $29,500,000
• Buyer / Borrower: Samantha Regan (or designated acquisition entity)
• Loan Coordinator: Samantha Regan, via Mone.Capital
• Strategy: Long-term hold (10–30+ years), Core / Core-Plus trophy retail asset
• Use: Capital preservation, appreciation-driven returns, stable income

The financing plan is structured to fully fund the acquisition using a DSCR-based loan with a 6-month soft ARM seasoning requirement, emphasizing property-level cash flow underwriting, execution certainty, and long-term flexibility, consistent with a generational ownership strategy.

2. Financing Structure (Base Case)

Primary Structure: DSCR Loan with 6-Month Soft ARM

• Loan Amount: $29,500,000
• Loan Type: First-lien DSCR (Debt Service Coverage Ratio) loan
• Underwriting Basis: Asset-driven cash flow (property-by-property)
• Leverage: Subject to appraisal and DSCR metrics
• Rate Structure: Soft ARM following initial fixed period

This structure is designed to:

• Eliminate reliance on borrower global income
• Rely primarily on in-place and market rental income
• Allow refinancing or rate optimization following seasoning
• Maintain certainty of execution through clearly defined documentation and process controls

3. Loan Coordinator Role & Compensation

Loan Coordination & Capital Advisory

The Buyer, Samantha Regan, will also serve as Loan Coordinator through Mone.Capital, responsible for end-to-end debt execution.

Scope of Loan Coordinator Responsibilities

1. Qualification & Lender Selection

• Evaluate and determine the best-fit DSCR lender based on asset profile, leverage, and timing
• Structure loan terms consistent with borrower objectives

1. Loan Packaging & Submission

• Collect, review, and package all borrower and property documentation
• Prepare the loan file for lender underwriting and approval

1. Execution Management

• Coordinate with lenders, processors, and underwriters
• Manage underwriting conditions and approvals
• Oversee progression from underwriting through closing

1. Closing Coordination

• Interface with lender counsel and borrower counsel
• Confirm closing conditions, date, and time
• Ensure timely and clean execution

Compensation

• Loan Coordinator Fee: 1.00 point (1%) of the loan amount
• Equivalent to: 1% of $29,500,000
• Payable at: Loan closing
• Entity: Mone.Capital

Referral / Pass-Through Compensation (If Applicable)

• Half-point (0.50%) per deal for parties who introduce qualified borrowers and provide documentation and client handoff
• Compensation is transaction-specific and payable at closing

Operational Support

• Three (3) dedicated staff processors support document intake, compliance, and underwriting coordination prior to file submission

4. Loan Terms

Core Loan Terms

• Amortization: 30-year principal & interest
• Initial Term: 5 years
• Rate Type: Soft ARM (adjustable after initial fixed period)

Prepayment Options

• Option A – Step-Down Prepayment Penalty:
• Year 1: 5%
• Steps down annually to 0%
• Option B – No Prepayment Penalty:
• Higher interest rate in exchange for full prepayment flexibility

This structure allows the Borrower to balance rate certainty against exit flexibility.

5. DSCR & Cash Flow Underwriting

Income Analysis

• 12 months of documented rental history
• Fully executed lease agreements
• Appraisal with rent analysis
• Form 1007 (Rent Schedule) included
• Lender underwrites to the lesser of actual rents or market rents

For alternative or short-term income:

• AirDNA score ≥60% acceptable as supplemental support

DSCR Framework

• Loan approval based exclusively on property cash flow
• No reliance on personal or global income
• Evaluated on a standalone asset basis

6. Seasoning Requirements (Key Consideration)

• 6-month seasoning requirement
• Borrower must own the property for six months prior to permanent DSCR execution

Exception:

• Lower LTV may allow financing shortly after acquisition

The Borrower is prepared to:

• Hold the asset through seasoning, or
• Adjust leverage to accelerate execution

7. Cash & Reserve Requirements

Reserves

• 3 months PITI reserves required, calculated as:
• Principal
• Interest
• Taxes
• Insurance

Total reserves equal 3× monthly PITI and are sourced from asset-driven cash flow, not personal income.

8. Documentation Requirements

Financial & Property Documentation

• 2 months of business bank statements evidencing property cash flow
• Lease agreements
• 12 months rental history
• Appraisal with rent analysis
• Form 1007 (Rent Schedule)

Entity Requirements

• Only the individual signing on the loan is required to be listed
• Single-purpose or holding entity acceptable

Foreign National (If Applicable)

• I-797 Form
• I-94 Form

9. Fees & Costs

Lender Fees

• Origination Fee: $1,895
• LLC Registration Fee: $495
• Certificate of Good Standing: $5

Broker / Loan Coordination Fees

• Loan Coordinator Fee (Mone.Capital): 1.00%
• Broker Fee (if applicable): 1.50%

Fees are consistent with DSCR products designed for cash-flow-focused real estate investors.

10. Lender Profile

This financing structure is well suited for lenders specializing in:

• DSCR and asset-based underwriting
• High-quality, income-producing properties
• Flexible borrower and entity structures

The Madison Avenue location, prestige, and scarcity materially enhance lender confidence.

11. Risk Management

Risk

Mitigation

Market volatility

Long-term hold strategy

Retail cyclicality

Luxury / flagship tenancy

Interest rate risk

Soft ARM with refinance optionality

Liquidity risk

Trophy asset with global demand

Refinance risk

30-year amortization, flexible prepay

12. Conclusion

The proposed financing plan supports the acquisition of 770 Madison Avenue using a $29,500,000 6-Month Soft ARM DSCR Loan, with Samantha Regan acting as both Buyer and Loan Coordinator through Mone.Capital.

The structure emphasizes:

• Asset-level cash flow underwriting
• Clear execution and accountability
• Defined compensation and process flow
• Alignment with long-term ownership objectives

This approach delivers certainty, transparency, and control, benefiting sellers, lenders, and long-term ownership alike.

I. 2–3 Page Investment Committee (IC) Memo

Investment Committee Memorandum

Asset: 770 Madison Avenue, New York, NY 10065
Transaction Type: Acquisition
Asset Class: Trophy Retail – Core / Core-Plus
Purchase Price: $29,500,000
Sponsor: Samantha Regan
Target Hold: 10–30+ years

1. Executive Summary

The proposed acquisition of 770 Madison Avenue represents the purchase of a generational-quality retail asset located within one of the most supply-constrained luxury corridors globally. The investment thesis prioritizes capital preservation, downside protection, and long-term appreciation rather than near-term yield maximization.

The transaction will be financed using a DSCR-based, asset-level loan, structured to underwrite exclusively to property cash flow and eliminate reliance on sponsor global income. The financing approach emphasizes execution certainty, refinancing flexibility, and long-duration ownership.

2. Asset Overview

770 Madison Avenue is a multi-level retail property located between East 66th and 67th Streets, surrounded by flagship luxury retailers, institutional ownership, and high-net-worth residential density.

Approximate Net Rentable Area: ~6,425 SF
Configuration: Basement + 5 stories
Use: Retail / showroom / flagship

The Madison Avenue corridor benefits from:

• Global brand demand

• Extremely limited retail supply

• High barriers to entry

• Institutional and family-office ownership profiles

3. Market & Location Rationale

Madison Avenue remains one of the most resilient and prestigious retail corridors worldwide. Despite broader retail volatility, luxury and flagship retail in this submarket continues to demonstrate durability due to:

• Brand signaling value

• Tourism and global visibility

• Long-term leasing behavior by luxury tenants

The asset’s location and scale position it as a liquidity-protected trophy, with demand from both domestic and international buyers and tenants.

4. Investment Strategy

Hold Period: Long-term (10–30+ years)
Strategy Type: Core / Core-Plus

Primary objectives:

• Preserve capital through irreplaceable real estate

• Capture long-term appreciation driven by scarcity

• Maintain stable income with optional upside through re-tenanting or repositioning over time

• Retain maximum flexibility through conservative leverage and favorable debt terms

This is not a yield-driven trade; it is a balance-sheet-quality asset.

5. Financing Strategy

The acquisition will be financed with a first-lien DSCR loan, underwritten solely to property cash flow.

Key Terms:

• Loan Amount: $29,500,000

• Amortization: 30-year P&I

• Initial Term: 5 years

• Rate Structure: Soft ARM after initial fixed period

• Prepayment: Step-down or no-prepay option

Rationale:

• Removes dependency on sponsor income

• Enhances execution certainty

• Allows refinancing or optimization post-seasoning

• Aligns debt structure with long-term ownership horizon

6. Risk Analysis & Mitigation

Risk

Mitigation

Market cycles

Long-term hold strategy

Retail volatility

Luxury / flagship tenant demand

Interest rate exposure

Soft ARM with refinance flexibility

Liquidity risk

Trophy asset with global buyer pool

Refinance risk

Conservative amortization + DSCR focus

7. Exit Considerations

While no near-term exit is contemplated, optionality includes:

• Refinance following seasoning or rate optimization

• Partial recapitalization

• Sale to institutional, family office, or international buyer

8. IC Recommendation

Approve acquisition of 770 Madison Avenue under the proposed financing structure as a long-term core retail investment aligned with capital preservation and generational ownership objectives.

II. Lender-Facing Pitch Deck (Slide-by-Slide Outline)

Slide 1 – Cover

770 Madison Avenue
Trophy Retail Acquisition
New York, NY

Slide 2 – Transaction Snapshot

• Purchase Price: $29.5MM

• Loan Request: $29.5MM

• Loan Type: DSCR, First Lien

• Sponsor: Samantha Regan

• Strategy: Long-Term Hold

Slide 3 – Asset Overview

• Iconic Madison Avenue retail property

• Multi-level configuration

• Approx. 6,425 SF

• Flagship / luxury retail positioning

Slide 4 – Location Advantage

• Core Madison Avenue luxury corridor

• Global brand demand

• Supply-constrained submarket

• Strong institutional ownership

Slide 5 – Investment Thesis

• Capital preservation-focused

• Scarcity-driven appreciation

• Stable income profile

• Deep liquidity on exit

Slide 6 – Financing Request

• Loan Amount: $29.5MM

• DSCR-based underwriting

• 30-year amortization

• Soft ARM structure

• Flexible prepayment

Slide 7 – Underwriting Framework

• Property-level cash flow only

• Lesser of in-place or market rents

• Executed leases + rent roll

• Appraisal and Form 1007

Slide 8 – Risk & Mitigation

• Market risk → Long-term hold

• Retail risk → Luxury tenancy

• Rate risk → ARM + refinance optionality

Slide 9 – Sponsor & Execution

• Experienced sponsor

• Loan coordination via Mone.Capital

• Defined process and accountability

Slide 10 – Closing & Next Steps

• Documentation ready

• Appraisal and underwriting coordination

• Targeted, efficient closing

III. Capital Stack + Returns Narrative (No Projections)

Capital Stack Overview

• Senior Debt: DSCR First-Lien Loan

• Leverage Philosophy: Conservative, execution-focused

• Equity Position: Structured to prioritize durability over IRR optimization

The capital stack is intentionally simple to reduce execution risk and preserve long-term flexibility.

Returns Philosophy (Narrative)

This investment is not underwritten to short-term IRR maximization. Instead, returns are driven by:

1. Long-Term Appreciation

• Scarcity of Madison Avenue assets

• Inflation-protected real estate value

• Corridor-level rent growth over time

1. Stable Cash Flow

• Underwritten to sustainable rents

• DSCR-focused debt service

• No reliance on speculative income assumptions

1. Balance Sheet Quality

• Trophy asset suitable for generational ownership

• Attractive to lenders and capital partners

• Deep exit liquidity across cycles

Return Optionality (Without Projections)

• Re-tenanting at market or premium rents

• Refinancing during favorable rate environments

• Partial recapitalization while retaining control

• Strategic sale at peak market conditions

Capital Partner Alignment

This structure appeals to:

• Family offices

• Long-term private capital

• Capital preservation-focused investors

The emphasis is durability, flexibility, and institutional-grade execution.

Overall Concept

Theme: Modern Urban Elegance

Vibe Progression

• Lower Floors: Food, energy, accessibility
• Upper Floors: Intimacy, exclusivity, views, nightlife

Target Capacity (Entire Building): ~280–330 guests

Vertical Circulation

• Central stair + elevator core for guests and service

Back-of-House (BOH)

• Concentrated in basement + partial first floor

Basement Floor — 968.7 SF

Function: Operations & Support (Non-Public)

Layout

• Main Kitchen Production Area — 420 SF
• Cold Storage / Freezer — 120 SF
• Dry Storage — 90 SF
• Staff Locker Room + Restroom — 110 SF
• Dishwashing / Prep Sink Area — 120 SF
• Mechanical / IT / Electrical — 108.7 SF

Notes

• Direct service elevator to all floors
• Designed for high-volume service without guest exposure

First Floor — 1,151.7 SF

Function: Main Restaurant + Bar (Primary Entry)

Layout

• Host Stand + Waiting Area — 80 SF
• Main Dining Area — 520 SF
• Bar + Bar Seating (8–10 seats) — 200 SF
• Open Kitchen / Expo Window — 150 SF
• ADA Restrooms — 140 SF
• Circulation — 61.7 SF

Estimated Seating

• Dining: 38–42
• Bar: 8–10

Vibe

• Lively, street-visible
• Warm lighting, statement bar, open-kitchen energy

Second Floor — 1,227.1 SF

Function: Formal Dining + Wine Focus, and light Shopping

Layout

• Elevated Dining Room — 720 SF
• Wine Display / Wine Wall — 120 SF
• Semi-Private Dining Room (10–12 seats) — 220 SF
• Server Station — 70 SF
• Circulation — 97.1 SF

Estimated Seating

• Main Dining: 48–52
• Private Dining: 10–12

Vibe

• Quieter, refined
• Ideal for business dinners and celebrations

Third Floor — 979.5 SF

Function: Cocktail Lounge + Social Space

Layout

• Central Lounge Seating — 420 SF
• Full Cocktail Bar (12 seats) — 210 SF
• DJ Booth / Feature Wall — 80 SF
• Performance / Event Area — 120 SF
• Restrooms — 110 SF
• Circulation — 39.5 SF

Capacity

• Seated: 40–45
• Standing (Events): Up to 70

Vibe

• Nightlife-oriented
• Mood lighting, velvet seating, curated sound

Fourth Floor — 1,001 SF

Function: Private Lounge + Event Floor

Layout

• Flexible Event Space — 520 SF
• Private Bar — 180 SF
• VIP Seating / Cabanas — 180 SF
• Storage / Service — 70 SF
• Circulation — 51 SF

Capacity

• Seated Events: 45–50
• Standing Reception: 80

Vibe

• Exclusive, rentable
• Brand events, birthdays, tastings

Fifth Floor — 1,097.8 SF

Function: Signature Lounge / Rooftop-Style Experience

Layout

• Indoor Lounge Seating — 420 SF
• Indoor Bar — 220 SF
• Dining Lounge Tables — 260 SF
• Feature Installation (Green Wall / Fireplace) — 120 SF
• Circulation — 77.8 SF

Capacity

• Seated: 55–60

Vibe

• Premium, Instagram-worthy
• Softer music, late-night elegance

Key Design Features (All Floors)

• Consistent brand materials: wood, brass, stone
• Lighting transitions from bright → moody upward
• Sound zoning to prevent floor-to-floor bleed
• Centralized BOH elevator for efficient service

Optional Enhancements

• Chef’s tasting counter (2nd floor)
• Members-only access (5th floor)
• Hidden speakeasy entry (3rd floor)
• Rooftop conversion (if zoning allows)

CUISINE, BRAND & FURNITURE PROGRAM

Cuisine & Brand Concept

Working Name: MADISON NOIR

Cuisine: Modern Pan-Mediterranean + Global Street Luxury

Food Style

• Shareable plates
• Late-night friendly
• Bold, upscale flavors

Signature Items

• Charred octopus
• Lamb kofta sliders
• Truffle flatbreads
• Wagyu kebabs
• Mezze towers
• Dessert cocktails & tableside presentations

Beverage Program

• Cocktail-forward (smoked, clarified, tableside)
• Wine-focused 2nd floor
• Bottle service from 3rd floor up
• Champagne-heavy upper floors

Music Progression

• 1st: Afrohouse / Deep House
• 2nd: Lounge / Chill
• 3rd: Open-format / House / Hip-Hop
• 4th: DJ-driven nightlife
• 5th: Melodic house / after-dark

Furniture Layouts & Seating Counts

(Summarized for clarity; detailed CAD specs in later tabs)

Total Approximate Capacity

• Seated: ~300
• Standing: ~76

MEMBERS CLUB CONVERSION

Brand Positioning

Working Name: MADISON NOIR SOCIETY

Model

• Private members club
• Limited public dining access
• Members-only after 9:30 PM
• Tiered access by membership level

Membership Tiers

• Social: Floors 1–3
• Elite: Floors 1–4
• Founders Circle: All floors + priority cabanas + private events

TECHNICAL EXECUTION (CAD, LIGHTING, AV, CODE)

Scaled CAD Drawings (DWG-Ready)

• Sheet Size: ARCH D (24" × 36")
• Furniture Plans: 1/4" = 1'-0"
• Lighting & AV: 1/8" = 1'-0"
• Units: Inches
• DOB-compliant layer structure provided

Lighting Design

• Lutron + DMX hybrid system
• Presets: Dinner / Lounge / Club / After-Hours
• Color Temp Range: 2200K–3000K

Sound & Acoustics

• Target STC: 60+ between floors
• Club-grade systems on 3rd & 4th floors
• Lounge-tuned sound on 5th floor

DOB + SLA Compliance

• UG-6 eating & drinking establishment
• Nightclub use accessory to restaurant
• ADA, egress, fire, and occupancy loads defined
• SLA-compliant private membership model

FINANCIALS, RETAIL & INVESTOR STRATEGY

Retail Addition

Concept: MADISON NOIR ATELIER

• Ground-floor retail (420 SF)
• Separate DOB Use Group (Mercantile)
• No SLA overlap

Annual Retail EBITDA: ~$300,000
Exit Value Uplift: +~$2.1M

Budget Summary (Total: $2,000,000)

• Construction: $900,000
• Furniture & Millwork: $350,000
• Lighting: $200,000
• AV / Sound: $375,000
• Design / Engineering: $120,000
• Legal / Permits: $55,000
• Contingency: $100,000

Investor Snapshot

• Year 1 EBITDA: ~$3.58M (incl. retail)
• Exit Multiple: 7.5×
• Estimated Exit Value: ~$26.85M
• Target IRR: ~48–52%
• Equity Multiple: ~12.5×

Legal Name: REGAN & FRIENDS FOUNDATION ® EIN Assigned: 39-2369247 501 (c)(7) Social Recreation