Preferred Equity Investment Strategy

7Acre’s Owner Friendly Structure is a Win/Win for All

An unfortunate fact in the preferred equity space is that many providers have interest in “getting to” the asset via any number of means. Unlike most preferred equity partners, 7Acre Investments, LLC is not an owner-operator. Early in the formation of 7Acre, we saw a large void in providers who were viewing themselves as real partners in these deals rather than simply funding “loan-to-own” preferred equity.

7Acre has since launched a program we internally call “JV equity with preferential economics”. Our fundings under this new soft structure have, so far, allowed us to be view as common equity with the Agencies, including receiving delegated approval behind a Fannie new origination, and a Fannie assumption on two recent closings. This new structure provides needed equity to sponsors while giving them comfort to operate the property without fear of predatory providers looking for a path to owning the asset themselves.

7Acre's primary focus is on multifamily financing solutions.

We provide short-term capital lending to middle-market multifamily owners and operators. Our team’s expertise in all facets of multifamily real estate including acquisitions, underwriting, structuring, closing and property management allows us to quickly and accurately underwrite opportunities and provide aggressive capital solutions that meet sponsors’ needs.

7Acre's investment strategy is highly disciplined and deeply rooted in decades of industry, financial and property management experience. We are firmly committed to achieving stable cash flows and generating competitive, risk-adjusted returns for our investors.

Key Investment
Criteria:

  • 150+ units

  • 1990 and newer location

  • Value add, stabilized, and lease up multifamily

  • Multifamily development is considered on a one off basis

  • Somewhat market agnostic with a MW/SE focus

Preferred Equity Typical
Characteristics:

  • $5,000,000 minimum (smaller amounts are considered case by case)

  • Soft Pay structure

  • Owner friendly structure (limited removal/replacement rights)

  • Fully compliant with Freddie/Fannie/HUD (including assumptions)

  • Max leverage of ≈ 80% LTV

7Acre Investments has a proven track record.

With a proven track record of success, we specialize in identifying undervalued properties with high potential for growth and helping investors maximize their returns.