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|
|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.