Capital stack
The capital stack is the set of money behind a commercial property, from senior mortgage debt to common equity. This area shows how the layers are ordered and priced.
Readers can settle where a senior lender or a preferred investor sits in a given deal, and what each position is entitled to receive. Questions about loan to value, loan to cost, debt service coverage and equity cushion get worked through here. The loan agreement and the operating agreement carry many of the answers. Sponsors can see how a gap in a refinancing or a rescue situation gets filled, and what the new money asks in return. Family offices can judge whether a structure protects their position.
- Buying Around a Seller’s Retained Property Interest
A buyer can acquire the remainder of an asset when the seller keeps one piece, using a carve out or land equity, with price set by what is actually bought. - Finding Your Position in a Deal’s Capital Stack
How an investor locates a position in a deal’s capital stack: who is repaid first, what accrued claims sit ahead, and whether debt matures before exit. - How Thin Equity Affects a Property Deal
A thin equity cushion lets a small drop in property value erase investor capital. Mechanics, a worked cap rate example and the questions that test any stack. - Negotiating a Waterfall for Property Rescue Capital
Fair rescue waterfall terms depend on payment priority, preferred return, catch-up math and residual participation, shown in a worked two case comparison. - Preferred Equity
Preferred equity ranks behind the senior loan and ahead of common equity. Learn current pay versus accrual, negotiated remedies, and a worked waterfall example. - Preferred Equity in a Multifamily Capital Stack
Preferred equity sits behind senior debt and ahead of common equity in multifamily. See the payment mechanics, control rights and a worked recovery example. - Staging Capital Across Property Project Phases
Equity can be called in tranches tied to milestones. A worked example compares upfront funding with staged calls and shows how slipped gates change exposure. - Using Preferred Equity to Fill a Refinancing Gap
Preferred equity can fill a refinancing gap. A worked example with two exit cases shows the sizing math and the control rights a provider asks for in return. - Where Debt and Equity Sit in the Capital Stack
Where senior debt, mezzanine debt, preferred equity and common equity rank in a property deal, what each layer absorbs, and a worked example with numbers.