The Team
Jeffrey Juster
President and CEO
Jay M. Juster
Vice-President
Capital Is Our Middle Name.
Newport Capital Advisors, LLC
Founded 2009
Jeffrey Scott Juster, President
Newport Capital Advisors specializes in providing joint venture equity, preferred equity, and equity/pref hybrids as needed for multifamily and other property types throughout the United States.
Newport is seeking investment opportunities in the $1 million to $15 million range. We are heavily focused on existing cash flow, so we are willing to consider older properties located in secondary and tertiary markets. A lot of opportunities come from the Midwest where there are higher cap rates. Newport is comfortable providing preferred equity behind any type of first mortgage. For pref equity, we are very flexible in the legal structure employed to accommodate the different first mortgagees.
Newport is fine with either value-add opportunities or stable assets--at this time we are not considering new construction projects. All investments are made with local sponsors having local market expertise. Newport requires a modest investment from the sponsor (at least 10% of the required equity), provided the investment amount is meaningful to the sponsor.
The preferred return requirements vary per transaction depending upon how Newport perceives the risk and the upside. Newport’s investment platform will hold longer term, so the investment requirements are not heavily dependent on IRR calculations or on receiving any specific multiple of capital return.
Newport considers mezzanine lending and preferred equity as interchangeable products. Its products are designed to be able to go behind any first mortgage and meet the requirements of all mortgagees including Agency and HUD. Its typical deal size range between $1 million and $10 million.
Newport prefers leased, cash-flowing multifamily properties, but we will consider other property types with cash flow (no hospitality). The fund has no geographic limitations, but Newport usually finds the best targets in secondary and tertiary markets throughout the United States. Midwestern deals work well for this structure because the returns tend to be higher going-in. Older properties and properties needing some rehab are acceptable.
Newport is very flexible on its preferred equity terms. We are willing to go coterminous with the first mortgage and allow some interest only on most payment structures. Newport is paid a fixed rate of return in the low double digits with very flexible prepayment permitted (the structure does not require any defeasance or yield maintenance). Newport does not really have any rigid sizing parameters as long as the borrower has a meaningful investment in the deal and Newport has adequate going-in debt coverage.