Areas of Activity
Areas of Activity
What the affiliated operating entities do, described in general terms.
Lanterna holds interests in three areas of real estate. Each runs on a different timeline and carries different risks, so each is carried on through separate operating entities. The sections below describe the kind of work involved. Particular projects, loans and properties are not described on this site.
Luxury Residential Property Development
Affiliated operating entities develop luxury residential property. Work begins with evaluation of a site and a candid read on what can be built there: zoning and entitlement questions, site conditions, and likely construction cost. Acquisition analysis and capitalization follow from that.
Once construction starts the entity runs it: budgets and contingency, change orders, lien waivers, inspections, insurance certificates, and coordination among the architect, engineers, general contractor and consultants. Project risk is managed at the project level, with reporting to Lanterna. Disposition strategy is set early and revisited as the project proceeds.
Private Real Estate Lending
Affiliated entities make privately negotiated real estate loans secured by non-owner-occupied investment real estate. Loans are individually structured. Each is considered on its own facts: the collateral, the borrower's plan for the property, the sources of repayment, and what happens if the plan takes longer than expected.
The operating entity handles underwriting, collateral and title review, structuring, and documentation with counsel and the title and escrow parties. Lanterna reviews that work and approves the commitment. Insurance requirements are confirmed before a loan closes, and monitoring and oversight of servicing continue afterward.
Lanterna does not manage, pool or solicit capital from outside investors.
Financing is conducted through operating entities and is subject to transaction-specific underwriting, documentation and applicable law. Nothing on this page is an offer, a commitment to lend, or a statement of available terms.
Long-Term Residential Property Ownership
Affiliated entities acquire, own, maintain and operate residential property intended for long-term occupancy. The intention at acquisition is to hold, and the property is managed on that assumption. Day-to-day property management is generally handled by outside managers. The recurring work is unremarkable and continuous:
- Maintenance planning, with attention to the items that get expensive when postponed: roofs, mechanical systems, water intrusion, grounds
- Capital improvements scheduled and budgeted
- Vendor selection, including licensing, insurance and quality of workmanship
- Coordination with property management on leasing, tenant relations, collections and turnover
- Property-level financial oversight: operating budgets, expense review, taxes and insurance
- Attention to the requirements that apply to residential rental property