Meecorp Capital Markets, LLC, a privately owned commercial real estate lender and private equity firm, has launched a new preferred equity investment product.
The launch coincides with Meecorp’s announcement that the company has closed its first transaction with its new product in a $14.2 million joint venture partnership with Gale International at 21W20, a new ultra-luxury condominium development in the heart of Manhattan’s Flatiron District.
“We believe that the next three to four years in particular will be a period of continued growth and improvement for real estate development, and have structured a preferred equity investment product that addresses the increasing demand among building sponsors for a greater percentage of their deal economics,” said Daniel Edrei, Director at Meecorp.
“In exchange for taking a priority position in the waterfall to mitigate risk, our new investment product provides developers with exponentially higher returns than they would otherwise receive under a typical joint venture equity partnership that heavily favors the investor.”
Added Edrei: “Gale International’s luxury condominium development at 21W20 is an ideal project for Meecorp as we shift our focus toward joint venture equity investment opportunities for new developments with highly experienced developers in the top real estate markets throughout the U.S.”
Comprising 12, full-floor luxury condominiums, 21W20 was designed by architecture firm Beyer Blinder Belle, with interior design by MR Architecture + Decor.