Sponsors are familiar with using preferred equity alongside a long-term mortgage loan, typically with a term of 5-12 years. What they may not have considered, however, is that preferred equity can be used alongside bridge debt in a similar..
Sometimes, the closing timeline for a transaction dictates that the senior loan must close prior to the preferred equity close. There can be several reasons for this, including sponsors making the decision to add preferred equity later in the..
The process for closing a stabilized deal with preferred equity typically runs around 4-6 weeks once a term sheet is signed. However, sponsors may find themselves in a position of needing a faster close than that. There are several variables that..
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..