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Preferred Equity: Where Capital Gets Selective

Preferred Equity: Where Capital Gets Selective

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In this episode of The Alkaline Reaction, we break down preferred equity, what it is, who uses it, and how it works inside real estate capital stacks.

We explore how preferred equity sits between senior debt and common equity, why investors and operators rely on it in different market environments, and how structure shapes risk and outcomes.

The episode walks through two detailed real-world scenarios 1) a stabilized multifamily acquisition and 2) a higher-risk transitional redevelopment, showing how preferred equity performs under different conditions, and why alignment matters.

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