Mezzanine/Preferred Equity Capital for Value-Add and Opportunistic Construction Loans

George Smith Partners identified a national lender offering preferred equity programs ranging from $10,000,000 to $100,000,000 in primary and secondary markets. Asset types include industrial, office, hospitality, retail and multifamily. With the ability to advance 70%+ of purchase price for bridge debt, pricing starts at LIBOR + 290 with floating rates up to five years. Preferred Equity will extend to 75-90% of cost for value-add and opportunistic transactions at 12%+.

For common equity, the value-add fund is seeking project level returns of 14%+ with average cash on cash yields of 6%+ across the country with a focus on industrial, multifamily, office, and retail with a minimum equity check size of $15 million. The opportunistic fund is seeking returns of 18%+ in primary and emerging primary markets across the country, covers all product types and will do development as well. Minimum equity check for the opportunistic fund is $25 million.