Closings
Representative Sample
Closed - $6,650,000 Preferred Equity
M2 Equity originated a $6,650,000 preferred equity investment subordinate to a $14.1mm CMBS loan for the acquisition of a175-unit, early 80’s vintage garden apartment property located in the Dallas MSA. The preferred equity was sized to 80% LTC.
The preferred equity, loan and sponsor equity capitalized a $26mm venture that will execute a value-add business plan centered on interior and exterior property improvements.
Special thanks to CBRE’s Dallas team Josh Berde, Andrew Woertendyke and Peyton Chur for their best-in-class leadership and contributions.
M2 originates preferred equity for existing multi-family opportunities in the $5-30mm range for value-add acquisitions, lease-up acquisitions, cash-in refinance/recaps, rate cap purchases and bridge loan rebalancings. Pref is structured to satisfy compliance with Agencies, HUD and all senior lenders. Pref sizing is market leading with no going in DSCR constraints.
Closed - $14,000,000 Preferred Equity
M2 Equity originated a $14mm preferred equity investment that was subordinate to a $53mm balance sheet loan for the recapitalization of a newly developed, class A, 336 unit, garden apartment property located in the Austin MSA. The preferred equity was sized to 86% LTC.
The preferred equity and loan recapitalized the property’s construction loan and construction pref and provides time for property to lease up, grow NOI and position for sale. The new financing also covered the costs associated with and accommodated the inclusion of a HFC tax abatement structure which is projected to add substantial value.
M2 is actively originating preferred equity for existing multi-family opportunities in the $6-30mm range for value-add acquisitions, lease-up acquisitions, cash-in refinance/recaps, rate cap purchases and bridge loan rebalancings. Pref is structured to satisfy compliance with Agencies, HUD and all senior lenders and sized up to market leading mid-80’s ltc with no going in DSCR constraints.
Closed - $17,000,000 Preferred Equity
M2 Equity originated a $17mm preferred equity investment that was subordinate to an $88mm debt fund loan for the acquisition of a 1972 vintage garden style apartment with over 1000 units, located in the upper mid-west. The preferred equity was sized to almost 90% LTC.
The preferred equity, loan and sponsor equity capitalized a $115mm venture that will execute a value-add business plan centered on substantial property improvements. Sponsor approached M2 seeking preferred equity in lieu of JV equity due to its high conviction with project’s upside. By utilizing preferred equity, sponsor projects that it will capture substantially more profits.
M2 is actively originating preferred equity for existing multi-family opportunities in the $4-30mm range for value-add acquisitions, lease-up acquisitions, cash-in refinance/recaps, rate cap purchases and bridge loan rebalancings. Pref is structured to satisfy compliance with Agencies, HUD and all senior lenders and sized up to market leading mid-80’s ltc with no going in DSCR constraints.
Recently Closed - $18,700,000 Preferred Equity & Bridge
M2 Equity originated $18.7mm of preferred equity and senior stretch financing for 3 properties located in Philadelphia and Jacksonville. The preferred equity was subordinate to bank and debt fund senior loans. The closing marked the first time each senior lender allowed preferred equity due to flexible soft pay structure.
The preferred equity and new senior financing repaid original financing used to acquire and improve properties, recapture a portion of sponsors’ original equity investment and provide plenty of time to position properties for sale. The M2 financing was fixed rate and provided sponsor with substantially more proceeds at a lower combined rate than all other competing offers.
M2 is actively originating preferred equity opportunities in the $4-30mm range for value-add acquisitions, lease-up acquisitions, cash-in refinance/recaps, rate cap purchases and bridge loan rebalancings. Pref is structured to satisfy compliance with Agencies, HUD and all senior lenders and sized up to mid-80’s ltc with no going in DSCR constraints.
Recent Closing $3.3MM Preferred Equity Investment
M2 Equity originated a $3.3mm preferred equity investment that was subordinate to a fixed rate bank loan for the equity recapture of a newly constructed boutique apartment located in fast growing Philadelphia submarket.
The preferred equity, sized to mid 80’s LTC, provided the property’s developer with additional liquidity to continue developing new properties in the immediate submarket. M2 worked efficiently with sponsor and his existing lender to close the transaction in 10 days.
M2 is actively originating preferred equity opportunities in the $4-30mm range for value-add acquisitions, lease-up acquisitions, cash-in refinance/recaps, rate cap purchases and bridge loan rebalancings. Pref is structured to satisfy compliance with Agencies, HUD and all senior lenders and sized up to mid-80’s ltc with no going in DSCR constraints.
Closed - $6,800,000 Preferred Equity
M2 Equity originated a $6.8mm preferred equity investment that was subordinate to a fixed rate Freddie Mac loan for the acquisition of a 1978 vintage garden style apartment located in the Arlington – Ft Worth, Texas MSA.
The preferred equity and new Freddie loan will provide experienced sponsor with sufficient capital to implement a capex based value add business plan. Special thanks to the CBRE Dallas team for once again trusting us with this time sensitive transaction and for their industry leading contributions!
M2 is actively originating preferred equity for existing multi-family opportunities in the $4-30mm range for value-add acquisitions, lease-up acquisitions, cash-in refinance/recaps, rate cap purchases and bridge loan rebalancings. Pref is structured to satisfy compliance with Agencies, HUD and all senior lenders and sized up to market leading mid-80’s ltc with no going in DSCR constraints.