Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LOS ANGELES-Necessity being the mother of invention, the market turmoil of the past few years gave birth to many creative solutions to the problem of illiquidity in a down real estate market. One of those solutions was the sale to opportunity investors of preferred equity interests in entities holding real estate.

By nature, opportunity investors typically want to reap their outsize returns within a relatively short time—usually just a few years, and the cost of these investments to the sponsor are usually sufficiently painful to incentivize the sponsor to retire or replace them as soon as possible. As the real estate economy continues its slow but steady recovery, we are now seeing the maturity of these investments, and thus the need or ability for sponsors to either buy them out or find more sustainably-priced capital to replace them.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.