Everbank's Real Estate Investor Loan Options Explored

EverBank is an American financial services company that provides banking and investment services, primarily via direct banking. It offers a range of loans, including commercial real estate loans for investors, developers, and owner-users. EverBank's commercial real estate loans include land development, construction loans, and loans secured by multi-family properties. The bank also provides flexible financing solutions for multi-family properties with 5+ units and offers owner-occupied real estate loans. EverBank's roots go back to 1961, but its current form was established in 1994 when an investor group acquired the Jacksonville, Florida-based Alliance Mortgage Company.

EverBank's history

EverBank is a nationwide specialty bank that provides high-value products and services to consumer and commercial clients across the United States. The bank was founded in 1998 and has since undergone several acquisitions and name changes.

In April 1999, EverBank acquired the world currency division of Mercantile Bancorporation. In 2001, First Alliance Bank, which had acquired Marine National Bank of Jacksonville, Florida, the previous year, was itself acquired by EverBank. In May 2007, EverBank agreed to acquire NetBank's direct banking and small business financing divisions, but the agreement was terminated in September 2007 due to NetBank's non-compliance with provisions regarding certain cash levels during the 2007 subprime mortgage financial crisis. Instead, EverBank acquired $700 million of NetBank's assets. In May 2008, MetLife acquired EverBank's reverse mortgage division.

In February 2010, EverBank expanded its services by acquiring Tygris Commercial Finance Group, Inc., a provider of financing for business equipment. In October 2012, the bank further diversified its offerings by acquiring Business Property Lending from GE Capital for $2.4 billion.

In June 2017, TIAA acquired EverBank, and it was renamed TIAA Bank. However, in August 2023, the bank was acquired by several investment funds, including Stone Point Capital and Warburg Pincus, and returned to its original name, EverBank.

EverBank offers a range of financial products and services, including high-yield FDIC-insured deposit accounts, commercial and industrial lending, and real estate financing for multifamily properties. The bank is committed to providing clients with a distinct financial advantage and maximizing their financial opportunities through competitive rates, flexible financing options, and convenient digital access to their accounts.

EverBank also prioritizes creating a safe, inclusive environment and expressly prohibits discrimination, harassment, and retaliation based on various protected characteristics, including race, religion, sex, and gender identity, among others.

Commercial real estate loans

EverBank is an American diversified financial services company that provides banking and investment services. It is based in Jacksonville, Florida, and is one of the largest banks in the United States.

EverBank offers commercial real estate loans for the acquisition and refinancing of commercial real estate for owner users, investors, and developers nationwide. Their portfolio includes owner-occupied, single-tenant, multi-tenant commercial, and multi-family properties with an average loan size of approximately $3.4 million. They offer competitive fixed and floating interest rates with flexible terms and conditions.

EverBank's commercial finance platform includes vendor equipment finance, lender finance, capital equipment finance, and business credit. Their vendor equipment finance division originates equipment leases and loans nationwide through relationships with equipment manufacturers, distributors, and dealers.

EverBank also provides flexible financing solutions for multifamily properties, including streamlined acquisition, refinancing, and construction options for properties with 5+ units. Their relationship-driven financing professionals aim to provide innovative financial solutions with speed and certainty of execution.

In addition to commercial real estate loans, EverBank offers lines of credit, term loans, and owner-occupied real estate loans to help businesses manage their cash flow and finance their corporate needs.

Real estate equity investments

EverBank offers flexible financing options for commercial real estate transactions. The bank provides loans for owner-occupied real estate, allowing businesses to manage their cash flow with revolving and non-revolving lines of credit. EverBank also offers multifamily lending solutions, providing acquisition, refinancing, and construction options for properties with 5+ units.

Equity in a property is the difference between the property's value and the amount owed on the mortgage. As an investor pays off their mortgage, equity accumulates, and this equity can be used to pursue other investments or pay off debts. This is a valuable tool for investors, enabling them to reinvest money into additional properties or explore other passive income strategies.

Real estate equity investment often involves a partnership structure with a General Partner (GP) and Limited Partners (LPs). The LPs are passive investors who purchase fractional shares of a special purpose vehicle, which grants them ownership interest in a real estate portfolio. The ROI for investors is based on their percentage contribution to the Capital Stack (the total dollar amount invested in the project). If a project exceeds expectations, investors benefit from the increased profits.

Owner-occupied real estate loans

EverBank offers a range of financing options for commercial real estate transactions. While there is no explicit mention of owner-occupied real estate loans, the bank provides flexible financing solutions for multifamily properties with 5+ units. Their relationship-driven approach connects clients to innovative financial solutions, ensuring speed and certainty of execution.

These loans offer more flexibility, as the borrower and tenant are aligned, and they also reduce the lender's risk, resulting in more favourable terms for borrowers. This type of financing enables businesses to customise and control their workspace while building long-term equity. It also fosters a sense of pride in ownership, integral to a company's identity.

There are various loan programs available for owner-occupied commercial real estate, including SBA 7(a) Loans, Conventional Loans, and USDA B&I Loans. SBA 7(a) Loans, offered by the Small Business Administration, permit 10% down payments and provide extended repayment terms of up to 30 years. Conventional Loans, provided by private lenders like banks and credit unions, typically require 20-25% down and have shorter terms of 5-10 years. USDA B&I Loans cater to rural properties, offering 100% financing and extended terms of up to 30 years for purchase, construction, expansion, equipment, and refinancing.

EverBank's fund finance initiative

EverBank is an American financial services company that provides banking and investment services. It is based in Jacksonville, Florida, and is one of the largest banks in the United States. The bank offers a range of financing options, including commercial and industrial lending, owner-occupied real estate loans, and multi-family lending.

In 2023, EverBank demonstrated its commitment to the niche business line of fund finance by hiring two prominent industry experts, Jeff Johnston and Mike Mascia, to lead a new division focused on serving investment funds. This initiative is particularly significant given the challenges faced by the industry that year, including a banking crisis, increased inflation, and tougher capital requirements for banks.

EverBank's move towards fund finance aligns with its evolution from primarily offering home loans to adopting a more commercially oriented business model. The bank's ownership structure, with several controlling investment groups active in private equity and venture capital, further supports this strategic shift. EverBank's fund finance initiative leverages the bank's understanding of the private equity space and its ability to provide specialized lending services to investment funds.

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