Third-Party Reports in a Joint Venture Transaction

Preferred equity providers may offer other investment vehicles, such as mezzanine lending or joint ventures. In a joint venture transaction, the joint venture investor occupies a different position than it does as a preferred equity provider...

Hard Preferred Equity or Soft Preferred Equity?

Though there is not an “official” definition for the structures sometimes referred to as “hard” or “soft” preferred equity, there are characteristics that agencies tend to view as making a deal one or the other. This can matter quite a bit when..

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..