Inner Circle Capital Advisors arranged a successful preferred equity placement on a 32-unit multifamily in Thibodaux, LA. The borrower had recently completed a Freddie Mac SBL loan with max cash out, constrained by DSCR. The deal was structured in the form of preferred equity, that amended and restated the operating agreement. The preferred equity holds no voting rights and no ownership stake and does not participate in the depreciation benefits of the asset. The preferred equity transaction provided the borrower $145,000 in additional proceeds above and beyond the senior debt at 13.65% annual finance rate. There is no lien on the property filed.
Capital Advisors: BJ Simpson and Jaideep Chadha
