Preferred Equity

Preferred Equity

Edgewood’s preferred equity program is designed to assists property owners and developers in value-add acquisition and real estate development projects. Our team is able to partner with equity investors to provide access to 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