Preferred Equity

- A great way to balance interests of the parties involved.

- Flexible way to recapitalize projects with inconsistency in cashflows 

- More flexible than Mezzanine Debt

- Works well with Redevelopment projects

- Usually consists of a Preferred return and an Accrual or Equity Participation on upside.

Light Value Add

with Existing Cashflow

- $2 to $25 million

- Up to 90% Loan to Cost

- Returns of 10-15% to Preferred Investors

- Usually acts like Mezzanine without some of the cosntrictions of debt

- Preferred Return plus Accrual

- No Participation by Investors

Significant Reposition

with or without supporting cashflow

- $3 to $30 million

- Up to 90% Loan to Cost

- Targeted Returns of 12-20+% to Preferred Investors/JV Partners

-Preferred plus Accrual

OR

-Preferred plus Participation

Opportunistic

(Redevelopment or Major Repositioning)

- $3 to $30 million

- Up to 90% Loan to Cost

- Returns of 15-25%+ to Preferred Investors / Joint Venture Partners

- Participating Interest to Investors