Strategies

Multifamily Development Preferred Equity

RSE provides flexible preferred equity for the development of institutional multifamily rental real estate assets in primary markets across the US. Our preferred equity funding is designed to be used as a complement to a non-recourse, low-leverage traditional construction loan to help sponsors maximize leverage while blending out to an attractive cost of debt capital.

Investment Parameters
RSE Investment
$2M - $20M Preferred Equity
Total Project Capitalization
$20M+
Max LTC
Up to 70-75% LTC (aggregate with senior loan)
Location
Primary and secondary markets across US
Asset Type
Multifamily (podium and garden-style)
Sponsor Track Record
$250M+ multifamily assets developed
Preferred Return Rate
10-11% (no participation in the upside)
Interest Reserve
6-8% current rate through stabilization (18-24 months) held back from gross funding
Maturity
Coterminous with senior loan term
RSE Fees
2% origination fee, no exit fees
Prepayment Penalty
None
Minimum Multiple
None
Project Status
Shovel ready
Security
Pledge of partnership interests