One way to reduce upfront costs during diligence is to determine whether a preferred equity provider can re-use existing third-party reports. Every provider will have specific guidelines that apply on a case-by-case basis, but sponsors may want..
Often, the common equity in a multifamily deal consists of multiple partners. These equity partners may desire to exit a deal while the remaining partners want to remain. In these cases, the remaining equity partners will need to buy out the..
There are many reasons a sponsor might decide to recapitalize an existing investment rather than refinance it, such as buying out a partner, reducing overall common equity, or financing a large value-add program without adding more common..
Choosing an organization structure within a preferred equity or mezzanine deal is an important step along the way to a smooth closing. Though there are many ways to structure the entities and individuals involved in a transaction, understanding..