Structuring Preferred Equity Investments in Real Estate Ventures: True Equity vs. "Debt-Like" Equity

strafford

PEIs, together with mortgage loans and mezzanine loans, are often a critical part of the capital structure used by sponsors to fund real estate ventures. The terms of PEIs can vary considerably. On one end of the spectrum are PEIs that are economically and functionally equivalent to a mezzanine loan, though structured as equity and not debt. On the other end of the spectrum are PEIs that are pari passu with the sponsor’s equity. In any context, a PEI’s equity is subordinate to all of the real estate venture’s debts.PEIs typically earn a higher rate of return on the investment than debt financing, and may earn a share of cash flow beyond a stated rate of return and of any capital appreciation.
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Spotlight

Introducing the rare opportunity to reside in the splendor of a meticulously designed and constructed Water Mill estate, which is now complete and move-in ready. This exceptional property is set on beautiful park-like grounds, with mature landscaping, framed by giant Cherry, Ginko and other specimen trees.

OTHER ON-DEMAND WEBINARS

Representations and Warranties in Commercial Real Estate Sales Contracts: Buyer and Seller Perspectives

When negotiating and drafting commercial real estate sales contracts, the purchaser and seller must anticipate and mitigate potential risks associated with the deal. Risks may include environmental conditions impacting the property, title and survey issues, zoning concerns, lease and tenant issues, building code violations, and potential condemnation or other proceedings. Skillfully negotiated representations, warranties, and remedies for breaches can protect the buyer, while the seller's objective is to limit the scope and survival of representations and warranties. Listen as our authoritative panel of real estate practitioners provides strategies for buyers' and sellers' counsel negotiating representations and warranties and other key provisions in commercial real estate purchase agreements. The panel will discuss best practices for buyers and sellers to identify and allocate risks when closing a real estate deal.
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LandVision Commercial Land Webinar: Quickly Find & Evaluate Property Opportunities

Digital Map Products

In this live product demo webinar, we illustrate how commercial real estate land professionals can use Digital Map Products' LandVision mapping solution to find, evaluate and capitalize on land and property opportunities.
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The Role of "Filtering" in Housing Affordability

Traditionally, the majority of housing affordable to many families has come through “filtering” – as apartment homes grow older, they gradually become part of the “naturally occurring affordable housing.” Following the Great Recession and Global Financial Crisis, this process reversed as value-add investors rehabbed apartments into higher rent classes to make up for the lack of new construction.
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Webinar: Introducing the CRE Collaborative

Quantum Listing

Watch the replay of our webinar with CRE Collaborative's founder, Andreas Senie, a veteran commercial real estate broker and technologist. Andreas gives us an in depth look at what his CRE Tech 2.0 service is all about, connecting the technology in your stack, so that it all works together.
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Spotlight

Introducing the rare opportunity to reside in the splendor of a meticulously designed and constructed Water Mill estate, which is now complete and move-in ready. This exceptional property is set on beautiful park-like grounds, with mature landscaping, framed by giant Cherry, Ginko and other specimen trees.

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