Preferred Equity

Preferred equity is the solution to many transaction issues. How can the preferred equity be used?

This program focuses on cash flowing assets and is used to tap into the equity of your property. It is not necessary that properties are stabilized with high occupancy. It is also a perfect accommodation for loans like CMBS or Life Co. loans that restrict secondary financing on your assets. Ideal for releasing trapped equity in the form of cash without the need to completely refinance. 

For maturing debt where capital to refinance is restricted by LTV standards using preferred equity is a smart choice. Special situations like repositioning, discounted purchases, rehabilitation and/or redevelopment, construction, development, distressed situations, value add, etc find solutions within this capital structure

Cash Flowing/ Value Add

  • Range: Minimum of $1MM and no maximum
  • Investments which are typically between 50% and 75% of total required Equity
  • Levered transactions assessed by pre or post cash flow dependent on strategy
  • Preferred equity position within the Operating Agreement of the Mortgage Borrower
  • Leverage: Up to 75% of Cash Equity
  • Geography: Continental 48 States preferred
  • Asset Type: Multi Family, Office, Retail, Industrial & Hotel

Development/Construction

  • Capital provided for up to 90% of the required equity
  • A minimum of 9% preferred return is expected.
  • Funds available from $5MM
  • Requests above $10MM preferred.
  • Funding available within 3-5 weeks
  • Co-GP & LP positions
  • Primary and secondary markets
  • Asset Type: Multi Family, Office, Retail, Industrial & Hotel
  • Short & Long Term exits