Preferred Equity Platform
Rising interest rates, increased supply of new apartments, and rising construction costs have contributed to significant challenges for apartment owners and developers. TRA provides "gap financing" in the form of preferred equity and mezzanine debt for those that need capital to complete construction or to re-finance or extend senior debt. We are actively providing capital under the following general parameters:
New construction or value-add projects
Primary focus is apartments but will consider single-family, self-storage, and other product types
$1 million to $8 million target investment size
12%+ accrual rate
Pay rate negotiable
Origination and exit fees
Typical 3 year term, extensions available (varies based on terms of senior debt)
6.5% minimum debt yield (or pro-forma debt yield)
