Why Choose CALCAP as your Preferred Equity Partner?

Market dynamics have created surging demand for alternative financing at higher leverage levels. Explore how CALCAP Advisors can partner with you and your clients to provide equity and debt solutions for real estate investments needs.

CALCAP’s experience as owner operators, property managers, and lender, gives us the unique capability to provide preferred equity investments. Combining the experience and track record of success gives us a unique position in the marketplace to provide real estate investors, owners, and sponsors with viable investment alternatives.

Investments consist primarily of preferred equity investments, bridge loans, and mezzanine debt in or on rental housing communities between 50-400 units. Properties are located in targeted markets across the Southwest and Southeast United States.

CALCAP’s preferred equity can be structured to go behind Agency, Bank, Debt Fund, and other senior lenders and is the ideal solution for: Bridging the proceeds gap during a bridge to perm refinance, purchasing of new rate caps for floating rate debt, completing needed capital projects, and achieving higher leverage acquisitions.

Program Guidelines

Review our Preferred Equity guidelines below.

Pref Eq, Bridge Loans, A/B Notes, Mezzanine Debt


8% - 14%


Up to 80%


Coterminous w/Senior Lender, Options to Exit Between 3 - 5 Years


$1MM - $7MM+

Loan Amounts

Multifamily and SFR Portfolios

Property Types

30 - 45 Days

Timing to Close

1.0x In Place (Using IO Senior + Pref Payments)

Minimum Coverage

13% - 14%

Accrued Return


Origination Fees


Exit Fees

Fixed or Floating w/Rate Cap

Senior Loan

Fixed Agency Preferred. Bridge, Bank, CMBS, and HUD Acceptable

Senior Loan Types

Expense Deposit Sufficient to Cover Customary Deal Costs


* All rates, terms, and guidelines subject to change.

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About CALCAP Strategic Opportunities

A division of CALCAP Advisors, CALCAP Strategic Opportunities benefits from the expertise of a seasoned team of professionals with extensive, successful track-records covering a variety of disciplines and leading large, nationally-recognized institutions. With over 150 years of combined experience, CALCAP's executive team has performed in all market cycles and is the ideal partner for sponsors looking to purchase or refinance multifamily properties.

Where We Invest

CALCAP is actively targeting Arizona, Arkansas, California, Colorado, Florida, Georgia, Kansas, Missouri, Nevada, New Mexico, North Carolina, South Carolina, Tennessee, Texas, and Utah within 60 miles of an MSA with a 750,000 or greater population.

CALCAP will consider opportunities outside of our active markets on a case by case basis.

Where We Invest

Preferred Equity FAQs

You've got questions, we've got answers.

What is the difference between preferred and other equity?

Common equity tends to have a profit split with Uncapped upside potential. Preferred equity has a lower fixed rate of return but is senior to all other equity in order of payment priority.

Who benefits from preferred equity?

There are two types of sponsors who benefit from preferred equity. The first type seeks ease of access to capital, with larger, single checks from preferred equity investors. This allows them to focus on due diligence instead of raising capital. The second type wants to increase member returns. Preferred equity rates are fixed, leaving room for more promote to sponsors and limited investment partners when opportunities exceed return expectations.

How does preferred equity work?

Unlike loans, preferred equity investments are not secured on title; rather, they are governed by an operating agreement that outlines the terms of the investment. Similar to Joint Venture (JV) agreements, preferred equity will have a variety of control rights and a non-recourse guarantee with standard "bad boy carveouts".

How long does the process take?

30-45 days is common, CALCAP has closed in as little as 10 days.

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