Terra Firma Investment Strategy

Why Terra Firma?

Terra Firma Capital Corporation provides lending services where quality real estate development intersects with the best human capital. In a sea of like-minded financial institutions, Terra Firma understands risk through an insightful and very different lens. As a non-conventional lender, Terra Firma approaches lending from an equity (or principal) perspective.

Terra Firma focuses on quality commercial and residential assets with a focus on development land and project financing. We only invest in well-established developers who are bankable but are underserved by conventional banks. We target growing urban and suburban markets both in Canada and the U.S

Collectively, the Terra Firma executive team has approximately 100 years of real estate experience.

Benefits to Using Terra Firma

Terra Firma is a boutique firm, offering a complete financial program, ranging from low leverage first mortgages to equity investments. Known for its flexible approach to structuring transactions, Terra Firma has the ability to provide both debt and equity financing.

With a commitment to vision, good governance and earning our client’s confidence, Terra Firma delivers a full spectrum of structured real estate financing solutions to developers and owners.

Loan Types

First Mortgages

Mezzanine Financing

Equity Investments

Joint Ventures

Special Situation Loans

Income Producing Properties

Lending Activities

First & Second Mortgages
and Mezzanine Financing

Terra Firma provides all types of debt including first and second mortgages and mezzanine loans. We typically look to invest in the following opportunities:

  • Land ready for development
  • First and Second Mortgages for residential, commercial and retail properties
  • Short term bridge lending and special situation facilities

Equity Investments
Terra Firma Capital Corporation provides equity financing to experienced residential and commercial developers. We typically provide 50% – 70% of the project’s required equity while the development partner manages the day to day operations. Terms of the joint venture will vary on a deal by deal basis and can be customized to suit the needs of the developer.

Terra Firma Capital Corporation tailors each financing to suit the needs of the individual developer or investor by offering the following products:

  • Land Acquisition Loans
  • Land Acquisition and Development Loans
  • Land Acquisition and Development and Construction Loans (Low Rise Residential Assets)
  • Project Financing for Multi Family / Condominium / Mixed Use / Commercial
  • Lot Inventory / Land Bank Loans
  • High Leverage Participating Loans – (Residential Land Development)
  • Equity Take Out Loans

Investment Criteria
Typical investment criteria are as follows:

  • Non-Recourse Loans available
  • First or Second Mortgages
  • Loan to cost up to 85%
  • Defined exit strategy
  • Up to five year terms
  • Typical loan size from $3,000,000 to $20,000,000
  • Properties located in Canada and the United States

Latest Projects

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