Preferred equity & mezzanine financing

Recent years have seen construction lenders pull back on the leverage they are willing to lend for commercial development/improvement projects. Whereas commercial construction lenders used to offer 70-80% LTC/LTV loans, today most will only lend between 60% and 65%. For many real estate entrepreneurs this has resulted in a 5-15% gap in capital funding, and created a demand for creative capital financing solutions. Our preferred equity and mezzanine debt investments are structured to address this challenge and help our clients activate and deliver their real estate projects.

Check Size

Investment Types

$1.5MM to $6MM

Preferred equity, mezzanine debt

Residential for-rent multi-family, senior living, student housing, mixed use and self-storage (other uses considered case-by-case)

Property Types

LTC / LTV

Up to 80% (potentially higher based on situational opportunities)

Term

24 month standard minimum term with two 12 month extension options

Ground-up development, bridge refinancing, tenant improvements, adaptive reuse, redevelopment, broker commissions, capital to access trapped equity

Transaction Types