Looking for Alternatives to Acquisition and Development Funding? Learn About Preferred Equity Investments!

A preferred equity investment is a structured real estate investment financing where capital is invested for a fixed term in exchange for an agreed return. While such capital is subordinate to debt, it takes priority over common equity. Preferred equity may be used as an alternative to a mezzanine or other subordinate loan. Check out this practice note for guidance on structuring real estate preferred equity investments.

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Related Content

• Real Estate Joint Ventures
  Dive into this practice note for an overview of joint ventures in real estate acquisitions and developments, including provisions addressing capital contribution obligations, management structures, defaults, and remedies.

• Joint Venture Organizational Chart (Real Estate Transaction)
  Refer to this chart for a commonly used real estate joint venture structure, where a capital member (who is usually providing a majority of the equity capital) and an operating member (who is typically an expert in the specific type of real estate asset or operation) form a new limited liability company (LLC) and enter into an operating agreement setting forth their rights and obligations.

• Real Estate Joint Venture Resource Kit (90/10 Real Estate Joint Venture)
  Access this resource kit for guidance on drafting a 90/10 Real Estate Joint Venture Agreement, which is a common equity split in a real estate joint venture agreement between a capital member and an operating member.

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