How to use structured financing to release trapped equity in a single property or entire portfolio

The concept of "Trapped Equity" is a common misconception in today's commercial real estate market. In most cases equity is only "Trapped" if you don't know how to free it up. Granted, the growth of the CMBS market (specifically understanding the impact of securitization as it relates to more uniform and restrictive loan documents and the increased complexity of servicer, sub-servicer and special servicer relationships) since 1996 has made monetizing on the appreciation of an asset more complex, however not at all unfeasible.

Pacific Security Capital's advisory group can assist you in releasing "Trapped Equity" by using anyone or combination of the following strategies:

• Defeasing Assets or Portfolios of Assets; 
• Using Preferred Equity, Mezzanine or other structured finance solutions; 
• Making entity level investments, or; 
• The use of other synthetic or derivative financial engineering strategies.

Authored by Mike Myatt
Executive Managing Director of Pacific Security Capital
Contact Pacific Security Capital today 1-800-844-6085

Filed under: trapped equity structured finance, commercial loans, commercial real estate, preferred equity, mezzanine finance