Preferred Equity Program

INVESTMENT PARAMETERS

Equity Size: $500,000 to $5,000,000

Geography: Western US preferred (CA, OR, WA, UT, NV, AZ)

Collateral: Preferred Equity

Maximum LTV: 75% of stabilized value

Maximum LTC: 90%

Appraisal: None required

Recourse: Standard partnership carve outs

Term: 1 to 2 years

Interest Rate: 12% to 15%

Fees: 1% in 1% out

Prepayment Penalty: Open after 1 year

Time to close: As short as 5 days

Servicing: In House

Approval Process: LBG Principals only, full discretion

Transaction Types:

  • Opportunistic acquisitions
  • Discounted Note acquisitions
  • REO/Distressed mortgage recap
  • Partnership buyout
  • Renovations/TI buildout

Property Types:

  • RETAIL preferred; particularly for reuse or adaptive reuse!!
  • All property types considered
  • Assets don’t need to be cash flowing
  • Will consider infill, zoned, land

Contact: Leslie Lundin