Real Estate Equity is Back… Kind Of.
After months of capital market tightness, equity is making its way back into real estate deals—but in a very specific form: Preferred Equity.
We’re not talking about the heavy-handed, sponsor-hostile pref from cycles past. This new wave is conventional preferred equity, designed to work in tandem with debt platforms to help deals pencil in today’s rate environment.
✅ Key differences:
Reasonable return hurdles
Sponsor-aligned structures
No predatory back-end grabs
Used as a flexible gap-filler between senior debt and common equity
Lenders like it. Sponsors like it. Deals need it.
For many, it’s become a critical tool to make proformas work, especially in transitional or value-add projects.
📞 Interested in hearing how others are structuring Preferred Equity in today’s market?
Happy to share insights, deal examples, and lender appetite summaries.
👉 Reply here: Contact Gary Cohen at GCohen@Americavest.us or (561) 467-6001