Real estate equity programs

Sometimes a loan doesn’t cover enough of a project. Equity fills the gap. Instead of lending, an equity partner invests in the deal and shares in the results.

We connect experienced sponsors with equity partners nationwide. Programs fund ground-up development, value-add repositioning and recapitalizations across major commercial real estate sectors.

Equity checks typically run from $2 million to $50 million and up. A partner can typically provide up to 90% of the equity a project needs. Most programs plan for a full exit in 3 to 5 years.

Recourse, yield maintenance and structure are handled case-by-case. Both recourse and non-recourse programs are available. Non-recourse means the partner’s claim is limited to the project, not your personal assets.

These programs are built for experienced developers, operators and sponsors. They fit when you have a defined project and need partnership capital beyond what a lender will provide.

Common uses include:

• Ground-up development
• Value-add repositioning of an existing property
• Redevelopment
• Recapitalizing a project to return capital or bring in a new partner

Each structure splits control, risk and returns differently. Your capital expert will walk you through which fits your deal.

• Joint venture (JV). You and a capital partner co-own the project under a shared agreement.
• GP/LP. You act as the general partner (GP) running the deal. The capital partner is a limited partner (LP) who invests but doesn’t manage.
• Co-GP. A partner joins you in the general partner role, sharing management and the GP’s share of returns.
• Preferred equity. The partner is paid after the senior loan but before your common equity. It typically carries a set return and less upside.

For ground-up projects.

Eligible assets include multifamily, mixed-use, retail, hotel, office, industrial, self-storage, single-tenant NNN property and development sites.

For existing properties you plan to improve, re-lease or reposition.

Eligible assets include multifamily, mixed-use, retail, office, industrial, self-storage, single-tenant NNN property, hotels and development sites.

For sponsors who want to keep control while adding capital behind the senior loan.

Yield maintenance is a charge for exiting early that compensates the partner for lost returns. It’s handled case-by-case. Pricing and fees are set at market; your capital expert will quote them for your deal.

Equity partners are investing alongside you, so they review the sponsor as closely as the property. Expect them to look at:

• Track record. Completed projects similar in size and type.
• Business plan. A clear budget, timeline and path to exit within 3 to 5 years.
• Your capital. The share of equity you will contribute yourself.
• The market. Demand for the finished or repositioned property.

A tight, well-documented plan shortens review and strengthens your terms.

Debt is usually cheaper. A lender takes a fixed return and no ownership. Equity costs more because the partner shares in the upside and takes more risk.

Many projects use both: a senior loan, plus mezzanine debt or preferred equity to close the gap. If a loan alone might cover your project, start with our debt programs. For smaller owner or investor deals, a conventional commercial loan may fit.