Structures

Guidance

Preferred Equity may be structured in a variety of ways, and appear similar to a traditional equity investment, while having rights or remedies similar to debt, such as Mezzanine FinancingMezzanine FinancingSubordinate debt financing provided to a direct or indirect owner of a Borrower that is secured by a pledge of the direct or indirect equity interest in the Borrower held by the owner, and not by a Lien on the Property. .

To determine if the Preferred Equity is Soft or Hard, you should analyze the:

• BorrowerBorrowerPerson who is the obligor per the Note. ’s organizational and capital structure;
• BorrowerBorrowerPerson who is the obligor per the Note. ’s applicable joint venture or operating agreement with the Preferred Equity provider; and
• rights and remedies of the direct and indirect equity owners against the BorrowerBorrowerPerson who is the obligor per the Note. .