Base Equities

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Preferred Equity

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Preferred Equity

An investment in the second loss position, that takes priority in the cap stack and paid before the sponsor’s equity.

Base Equities partners with experienced sponsors looking for small-balance preferred equity investments($1-$5 million) in value-add real estate throughout the U.S.

Benefits to real estate sponsors:

  • Quick, reliable equity funding
  • Source your equity before your deposit is nonrefundable
  • Increased IRR on common equity with a preferred equity structure
  • Acquire larger and more deals with an equity partner to support you
  • Flexible terms and structure
  • Pay us off through a refinance and own 100% of the deal
  • Funds are typically non-recourse to the sponsor

Program Details

Download Tear Sheet Here
Investment Amounts: $1 million to $5 million.
Maximum 90% LTV (up to 95% in special circumstances)
Investment Horizon: 2-3 years. Up to 5 years in certain circumstances
Investment Term: Flexible.
0-10% current pay
Yield to a 8-15% preferred return
0-50% profit share
Redemption: Through sale or through refinance and Sponsor retains 100% of the equity
Fees: 1% of equity placed at closing
Investment Type: New Acquisitions
Capital Improvements
Partnership Recapitalizations
Rescue Capital
Target Asset Types: Value-add multifamily
Value-add industrial
Non-performing loans
Prepayment: Flexible