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Stephanie Jones

Stephanie Jones

Recent Posts

Bridge Preferred Equity – When is it Appropriate?

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..

Adding Preferred Equity After the Senior Loan Closes

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..

Tight Timelines: How to Get Equity when you are in a Hurry to Close

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..

Reducing Upfront Deal Costs for Preferred Equity

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..

Closing with Preferred Equity Behind a Construction Loan

Preferred equity is not just for stabilized assets; it can fill a gap in the capital stack behind a construction loan as well. Many characteristics of a development deal are similar to those found in a typical acquisition or refinance, but there..

Buying Out an Existing Partner Using Preferred Equity

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..