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..

Multifamily Construction Update (April 2020)

Construction-related issues begin to take hold as COVID-19 tears through the nation. Construction delays from the stay at home orders (affecting permits) and global supply-chain constraints led to the lowest 1Q20 deliveries in nearly a decade in..

Multifamily Real Estate Markets Update (April 2020)

The multifamily industry has seen some minor effects of the COVID-19 pandemic, but the performance was better than expected after rent collections. Class C properties will be hit the hardest, as well as those markets that are travel and..

Multifamily Capital Markets Update (April 2020)

The 10-year Treasury Yield has declined to ~.5% after rising to 1.5% in late March. The bond market is beginning to function after a few weeks where spreads blew out and there was no liquidity in the marketplace. Freddie Mac and Fannie Mae..

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..

Commercial Real Estate Markets Update (March 2020)

Fears over COVID-19 have caused a flight to safety that has seen interest rates reach a record low. The economy as a whole stands well-positioned to handle a pandemic-induced shock with strong job creation and growth drivers, however, there is..