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|
|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|