An equity investment in the second loss position, that takes priority in the capital stack and is 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.
|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|
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
|Target Asset Types:||Value-add multifamily