When a loan extension hinges on a material paydown, CRE operators must weigh more than just the rate—they must balance liquidity, partner dynamics, and long-term asset strategy.
In this 20-minute virtual case study, we examine how a firm with a 300-unit multifamily property faced a $5 million paydown requirement to secure a 2-year loan extension—and the strategic options considered to preserve equity and align with investor interests.
Key Takeaways:
- Preferred equity can fill funding gaps without relying on LP capital, especially when capital calls face resistance.
- Structuring decisions should align with both near-term NOI recovery and long-term hold strategy.
- Scenario modeling must account for dilution, timing, and LP dynamics—not just headline IRRs.
- Proactive debt planning like extensions, earn-outs, or hybrid stacks can create runway and preserve upside.
