CRE Capital Stack Guide
Who gets paid first, who takes the risk, and where each layer of capital fits. Useful whether or not you have a live transaction.
- Senior debt — first position, lowest cost, lowest risk, paid first
- Mezzanine debt — behind senior, secured by an interest in the ownership entity
- Preferred equity — behind debt, ahead of sponsor equity, with a defined return and exit
- Sponsor / common equity — last paid, unlimited upside, first to absorb loss
- Why the gap between senior debt and sponsor equity is where most deals stall
- What changes when preferred equity sits senior to all other equity
- Why a capital event date matters more than a projected return
- How hold period and yield on cost interact
Where LionMan's capital relationships fit
Universal Private Loans — a Florida-based direct private lender for investment-purpose construction and bridge financing
NLA Capital Partners — an affiliate of ARCTRUST, active in net lease and in preferred equity for development and value-add
LionMan evaluates opportunities and works with the applicable capital relationship based on structure and fit. Availability, underwriting, structure and final terms are determined by the capital provider.
Program parameters are confirmed per transaction with the applicable capital provider and are subject to change. Nothing here is an offer, commitment, or term sheet.
