What is the advantage of preferred equity?
Preferred Equity (Mezzanine Debt) is generally structured as a loan that is secured by a property or the LLC and senior to the LP equity, but junior to the senior loan on the property.
Preferred Equity, on the other hand, is an equity investment in the property-owning entity. It is not secured by the property but rather by an interest in the entity investing in (or owning) the property. Both structures carry with it a preferred return that can be paid off with refinance or a sale.
Some structures have the lender/investor remaining in the deal with a look back IRR (back ended interest in the profits).
Why Mansfield Equities?
Over 20 Years
In Real Estate Lending
Funding in as few as 7 days
Proven History of Successful Funding
(Over $3B funded since inception)
What our customers are saying...
“L$25M refinance of our 300,000 sf industrial portfolio in 40 days. 10-year term fixed rate. Thank you Mansfield.”
— Gary Bias, Silver Spring, MD
“Mansfield did a great job securing a $2.5M preferred equity on our $19M purchase of a shopping center.”
— Gary Drebin, Dever, CO
“We needed a $4M nonrecourse loan to refinance our apartment building in LA. Mansfield delivered at 3.2% nonrecourse.”
— Ken Dixon, Los Angeles, CA