Why “structured” rather than a simple mortgage
A conventional mortgage places debt on the occupant’s balance sheet and consumes borrowing capacity that governments, universities, and many nonprofits do not have. Structured real estate financing starts from a different question: can the occupancy itself—long-term, credit-worthy use of a specific asset—support capital provided by third-party lenders and equity, while the occupant continues to operate in place?
BW Realty Advisors designs those structures. Unique models enable credit-worthy governmental units, nonprofit entities, corporations, and other entities to monetize the value of their real estate while achieving operating-lease treatment at lease rates between 75 and 200 basis points below otherwise available private-market pricing.
The capital stack BWRA typically uses
The model employs an accruing ground lease or zero-coupon debt structure, combined with amortizing debt and significant equity investment. Immediate cash to the occupant is maximized; the long-term cost of occupancy is minimized; and each party’s accounting and tax position is treated as a design constraint.
On the USPTO headquarters recapitalization, tiered debt and new equity produced more than twice the yield the owner originally sought—evidence that structure, not just leverage, drives outcomes.
When this approach is a fit
- The occupant is credit-worthy and will remain in the building.
- The asset is owned, being acquired, or newly constructed.
- Cash is needed for operations, mission, or growth rather than for real estate speculation.
- Operating-lease treatment, historic credits, or public-control requirements rule out a plain mortgage.