Preferred Equity

Edgewood’s Preferred Equity Program is designed to assist property owners and developers in value-add acquisition and real estate development projects. Our real estate equity team partners with equity investors to provide access to reliable capital to carry out projects on all types of commercial real estate assets.

Equity Size	$2 million - $5 million
Geographic Region	Nationwide
Security	Assignment of Sponsor Interest in the owning LLC
Structure	Up to 80% of the required equity in a senior position to the sponsor’s equity
Preferred Return	10-12% preferred return. Unpaid preferred return accrues and compounds monthly
Profit Sharing	Profit Sharing is deal-dependent and is generally 50/50 split of excess profits after payment of preferred return and return of capital to both the senior equity and the sponsor
Fee	Fees are deal-dependent and are determined at a later date
Closing	10 – 15 Business Days

What is preferred equity?

Preferred equity in real estate is a financing solution that is common among commercial real estate investments or private equity funds. It provides investors with extra security on their investment while giving active investors the opportunity to leverage more capital for investment.

Interested in working with Edgewood?

Whether you’re a real estate entrepreneur seeking a custom capital solution or a seasoned investor looking for high yielding, secured exposure to real estate, Edgewood Capital could be the right source for you. Our team builds lasting partnerships by approaching every opportunity with unwavering professionalism and a commitment to excellence. Contact us today to learn how Edgewood’s programs can help you achieve your long-term financial objectives.