Real Estate Preferred Equity / Mezzanine
Property type:
-
Residential: Multifamily, Student Housing, SFR, and For-Sale Housing
-
Healthcare: Nursing Homes, Assisted Living, Continuous Care, and Senior Living Facilities
-
Industrial: Warehouse Distribution Facilities, Cold Storage, Build-To-Suit Basis
-
Other: Self-Storage, Office, Retail, and Hospitality
Investment Type:
-
Development
-
Acquisitions
-
Refinancing / Workouts / Recapitalization
Size:
-
$2-50 million
Hold Period:
-
Up to 5 years
Structure:
-
Up to 88% Loan-To-Cost (LTC) in a senior position to the sponsor’s equity
Preferred Return:
-
10-15% preferred return (depending on the risk level and profit sharing participation, if relevant)
-
Unpaid preferred return accrues and compounds until repayment
Security:
-
Typically, assignment of the Sponsor Interest in the owning LLC
Profit Sharing:
-
Profit Sharing is deal-dependent. Generally represents a split of excess profits after payment of preferred return and return of capital to both the senior equity and the sponsor
Timing:
-
15-30 days