Distinctive Financing
Hoffman Development Group recognizes the critical importance of establishing sound assumptions and key inputs for inclusion in project budgets and financial pro forma statements. As a valued partner, we actively contribute to these early-stage planning efforts - helping project sponsors assess feasibility and supporting the essential decision-making process that determines whether a project should move forward.
Hoffman Development Group develops, builds, and finances commercial real estate projects across the country - delivering quality facilities by utilizing distinctive financing programs that involve structured finance, project finance, balance sheet neutral financing, off balance sheet financing, or public-private partnership financing.
Project Finance
Project Finance is the long-term financing of infrastructure projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors, structured in such a way that it relies solely upon the future cash flows of the completed facility for the repayment of the financing.
Project Finance refers to the funding of projects through a specific financing structure that is often more advantageous than traditional financing methods, accomplished by obtaining independent market reports and feasibility studies to support the project’s financial analysis.
Public-Private Partnerships & Financing
A Public-Private Partnership (PPP or P3) is a collaborative arrangement between public and private sector entities structured to achieve shared long-term infrastructure goals. It offers an alternative to traditional public procurement for medium to large-scale capital projects, allowing public agencies to leverage private capital and expertise.
Various Structures
Private Financing (Private Capital) with favorable terms and conditions, and asset reversion to the public entity.
Non-Profit 501(c)3 as Borrower via the underwriting of Private Activity Bonds, and asset reversion to the public entity.
‘63-20’ Financing with a Municipal Alter-Ego Non-Profit Corporations as Borrower, with asset reversion to the public entity.
Risk Transfer and Decision Authority
A P3 approach transfers the following risks and responsibilities to the private sector:
Design and construction risk
Financing and interest rate risk
Operational and maintenance performance
Revenue risk (if applicable)
Project delivery and schedule
The public sector benefits from reduced delivery risk while maintaining strategic control over core outcomes and future ownership.
Conclusion
The P3 model enables public entities to achieve essential infrastructure goals without upfront capital expenditures, while benefiting from private-sector efficiencies and innovation. Through a properly structured lease-leaseback mechanism with asset reversion, communities gain long-term public ownership of state-of-the-art facilities both debt-free and responsibly delivered.