CRE Debt & Equity
Preferred Equity
- Deal size
- $5M–$50M
- Indicative terms
- Up to 90% LTC15%+ current pay, 1.5x min multiple24–48 mo
Overview
Sits above senior debt to close a capital stack gap without diluting the sponsor's common equity position as much as an LP raise would — typically layered in alongside an existing or newly-placed senior loan.
Submit a DealWho this fits
- Adds construction completion capital on top of senior debt
- Multifamily, condo, industrial, hotel
What disqualifies a deal
- Deals without a senior lender already in place or identified
Frequently asked
Questions sponsors ask about this program
- What deal sizes does Preferred Equity support?
- Preferred Equity is sized at $5M–$50M. Sits above senior debt to close a capital stack gap without diluting the sponsor's common equity position as much as an LP raise would — typically layered in alongside an existing or newly-placed senior loan.
- What are the indicative terms?
- Indicative terms are Up to 90% LTC; 15%+ current pay, 1.5x min multiple; 24–48 mo. Final pricing and structure depend on sponsor track record, asset quality, and the exit.
- Who is a good fit for this program?
- Adds construction completion capital on top of senior debt. Multifamily, condo, industrial, hotel.
- What would disqualify a deal?
- Deals without a senior lender already in place or identified. We tell sponsors early when a deal isn't right for this program rather than shopping it to lenders who won't close it.
- How does the process and timing work?
- A senior lender must already be in place or clearly identified, since the preferred position is layered on top of that debt.