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PREFERRED EQUITY

We arrange Real Estate Preferred Equity financing up to 90% Loan-to-Cost

Real estate preferred equity investments are in a junior position behind the first mortgage, but are in a senior position to the sponsor’s equity investment, often referred to as common equity.  

For example, when net cash flow is produced from a property or profits are earned upon a capital event (sale or refinance), preferred equity investors are paid after the senior lender, but before the common equity.  Since preferred equity is junior to the senior mortgage, it carries a higher degree of risk and warrants a higher rate of return than the interest rate charged on the first mortgage.

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WHY CLEARWATER

FORMER LENDERS

We are former bankers and lenders who specialize in arranging commercial real estate loans across all asset types and geographies up and down the capital structure to provide our clients with the most competitive terms and most reliable executions in the debt capital markets.

WELL-ESTABLISHED

We maintain several relationships with Limited Partners and Institutional Investors who seek to invest passively on a direct acquisition, joint-venture, discretionary fund basis that efficiently enables sponsors to acquire or recapitalize an asset.

CAPITAL OPTIMIZATION

We source subordinated financing to increase overall leverage for our clients who wish to maximize their returns, reduce risk, and/or generate liquidity. We work with capital sources who specialize in providing Mezzanine Debt or Preferred Equity.

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300 Park Avenue New York, NY 10022
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Legal Notice: To the People of the State of New York: In compliance with New York Senate Bill #S7729, requiring real estate brokers to set in place standardized operating procedures, Clearwater Capital Management, LLC (“Clearwater”) states the following: Prior to showing a homebuyer a property or providing services: (1) Clearwater does not require identification from a prospective homebuyer, (2) Clearwater does not require a homebuyer to sign an exclusive brokerage agreement requiring the homebuyer to work only with Clearwater on all properties; and (3) Clearwater does not require a pre-approval for a mortgage loan in order to show properties to a homebuyer. However, based upon the requirements of the seller, the building in which the properties are located, or others, some or all of the foregoing items may be required.