Value Add Multifamily Preferred Equity
Accrual preferred equity capital provided to sponsors for multifamily rental properties who intend to implement common area, amenity, and/or in-unit renovations. Instead of using cash flow to service a subordinate lender, excess cash flow can be used to continue to fund the planned improvements.
Structure: Partner within joint venture agreement with sponsor
Pricing: 12% to 16%
Term: 3 to 7 Years, not to exceed 10 years/senior loan term
Investment Size: Minimum of $7.5 Million and no maximum
Asset Type: Multifamily