Preferred equity is an investment that sits between the senior mortgage and common equity in a real estate deal's capital stack.
Log in to followWe put $2.4m of pref into a 78-unit value-add through a small group, 11% total return, 4% current pay and the rest accruing, three year redemption. The docs looked fine to me at t…
$900k into a pref position on a suburban office-to-flex conversion, 12% accruing, no current pay for the first eighteen months, 1.35x minimum multiple at redemption. I read the wh…
Writing this from the sponsor side. Mid-size industrial infill, five buildings, $14.2m purchase. Senior loan was $9.1m fixed for five years with defeasance and a lockout through y…