MDO Investments (“MDOI”) is a division of MDO Capital and was created in 2011. The mission statement of MDOI is twofold. First, provide MDO Capital a real estate portfolio that provides synergies with our clients as well as real estate assets that create cash flow and value over time. Secondly, provide clients with a full service solution on both debt and principal transactions.
MDOI has been a very active division within MDO Capital. Clients have taken advantage of MDOI’s full service platform in multiple ways. MDOI has acquired several real estate properties with its clients since 2011. The Company is typically called upon to put together the debt as well as contribute a pro rata share of the equity capital on a particular transaction. MDOI is currently invested in 14 assets across the US with a total asset value over $500mm. MDOI has a long term hold strategy focusing on cash flow and asset appreciation although certain deals may be a shorter term horizon. The product types include office, retail, multi family, mobile home parks and residential land. MDOI’s ownership and role varies by transaction and the partnership agreements can be tailored to the client’s specific needs.
MDOI also provides debt for its clients when there is a gap between the loan request and the loan available in the marketplace. MDOI will step in and provide a subordinate loan to accommodate the transaction. In terms of collateral and structure MDOI is flexible and creative depending on the need. MDOI has provided loans under the following collateral circumstances:
1. unsecured loans guaranteed by a company or principal
2. mezzanine loans
3. springing pledge behind a mezzanine loan
4. junior participations in senior loans in order to induce senior lender for more favorable terms for client
The above loans have been placed side by side across many different lending platforms including CMBS, balance sheet, CLO’s, CDO’s and other securitized vehicles.
MDOI has provided loans over $10 million since inception and has anywhere from 4-5 loans outstanding at any given time with total balances in the $3-5 million range.