As Seen In
Standard Pref · Property-Level Structure
Structured equity behind senior debt at the property level — purpose-built to support acquisitions, recapitalizations, and capital improvements with speed and certainty.
Property-level underwriting. Current pay + accrual return. Non-dilutive to ownership control where applicable.
As Seen In
A more traditional pref product — positioned as structured equity behind senior debt at the property level. Preferred equity investment at the asset level to support acquisitions, recapitalizations, or capital improvements.
Asset-Level Preferred Equity (Standard Pref) sits in the capital stack directly behind senior debt and ahead of common equity at the individual property level. Unlike holdco or sponsor-level structures, this product underwrites the asset directly — aligning Nectar's return profile with the property's in-place cash flow performance.
Operators receive structured capital with a defined return (current pay plus accrual) while retaining ownership control where applicable. Nectar operates as an aligned capital partner — not a lender, not a co-GP — with a clean, predictable structure designed for speed.
Asset-Level Preferred Equity can be applied across a range of deal scenarios where structured, property-level equity is needed — without a full refinance or ownership restructure.
Bridge the equity gap on a multifamily acquisition — close faster with structured preferred equity behind the senior loan without diluting the GP stake.
Provide short-term equity capital during the transition period of a value-add or repositioning strategy, with a structured return that aligns with the asset's improvement timeline.
Support capital improvement programs — unit renovations, amenity upgrades, and NOI enhancement — with equity capital that doesn't require a full refi event.
Restructure the equity stack at the asset level — releasing trapped equity, exiting a partner, or resetting the capital structure — without a costly refinancing of the senior debt.
A sample of closed transactions funded by Nectar across multifamily, student housing, and hospitality assets. All figures are actual deal data.
Multifamily
272 Unit Multifamily
Student Housing
158 Bed Student Housing
Hospitality
161 Room Luxury Hotel
Multifamily
60 Unit Multifamily
All terms indicative and subject to underwriting, deal-specific structure, and credit approval. This is not a commitment to lend.
| Investment Size | $200,000 – $3,000,000 |
| Term | 1 – 5 Years (co-terminus with senior maturity available) |
| Structure | Preferred equity at the asset / property level |
| Return Profile | Structured: current pay + accrual component |
| Max CLTV | 85% (combined loan-to-value, inclusive of senior debt) |
| Capital Stack Position | Behind senior debt, ahead of common equity |
| Property Types | Stabilized or light value-add multifamily (primary); other asset classes on a deal-by-deal basis |
| Target Profile | In-place cash flow; stabilized or repositioning assets with demonstrable coverage |
| Ownership Control | Non-dilutive to ownership control where applicable |
| Underwriting | Property-level — cash flow analysis, debt review, rent roll, T12 P&L, appraisal |
| Funding Speed | Within 7 days after receipt of required underwriting diligence |
| Geography | Nationwide — all 50 states considered |
The structural advantages that make asset-level preferred equity a versatile, execution-friendly tool for property owners and capital advisors.
Sits in the second position in the property's capital stack — after senior debt, before common equity — with a clearly defined priority return profile.
Preferred return includes both a current pay component and an accrual component — aligning Nectar's return with the property's cash flow reality.
Where applicable, the structure preserves the sponsor's ownership interest and control position — capital without giving up the cap table.
Nectar underwrites the individual asset — cash flow, DSCR, debt profile, rent roll, and market — not a portfolio aggregate or entity-level analysis.
Nectar operates as a silent preferred equity partner — not a lender imposing covenants — with full alignment behind the sponsor's execution plan.
Streamlined process from submission to close. Preliminary read within 24–48 hours. Funding within 7 days of completed diligence package.
Nectar's Standard Pref is purpose-built for stabilized or light value-add multifamily with in-place cash flow. Here's what typically qualifies.
Stabilized or light value-add multifamily. Student housing, hospitality, and self-storage on a deal-by-deal basis.
In-place cash flow with at least 12 months of operating history. Minimum net cash flow after debt service required.
Nationwide. All 50 states considered with a focus on established multifamily markets with strong fundamentals.
Proven operators with 3+ years of experience managing and operating the asset class. Demonstrated track record preferred.
A streamlined diligence and execution process designed to get to a funded position as quickly as possible once underwriting is complete.
Step 01
Complete the deal submission form with asset details, senior debt profile, capital need, and use of funds. Takes under 2 minutes.
Step 02
Nectar's originations team reviews the submission and provides a preliminary deal read within 24–48 hours — no documents required at this stage.
Step 03
Full property-level underwriting: T12 P&L, rent roll, debt statements, appraisal, and sponsor background. Typically completed in 5–10 business days.
Step 04
Funding within 7 days of receiving a complete underwriting package. Wire sent directly to the designated entity account.
Asset-Level Preferred Equity (Standard Pref) is a structured equity investment placed at the individual property level, behind senior debt and ahead of common equity in the capital stack. Nectar provides capital with a defined preferred return (current pay plus accrual) and underwrites the individual asset — not a portfolio of assets.
Sponsor-Level Capital is structured at the operating company or holding company level — it underwritesthe sponsor's overall portfolio and is not tied to any single property. Asset-Level Preferred Equity (Standard Pref) is secured against a specific property, underwrites that property directly, and sits in the capital stack at the asset level. The two products serve different use cases and sponsor profiles.
Because this is structured at the asset level behind the senior loan, lender consent requirements depend on the terms of the existing senior debt. Nectar's team works with the sponsor to evaluate consent requirements early in the process and can advise on how to navigate those conversations. This is a standard part of the diligence process for asset-level pref structures.
Stabilized or light value-add multifamily is the primary target. Nectar will also evaluate hospitality, student housing, self-storage, and select commercial real estate on a deal-by-deal basis. The critical requirement for Standard Pref is in-place cash flow — Nectar underwrites the asset's actual performance, not projections.
The combined loan-to-value (senior debt plus Nectar's preferred equity) is capped at 85% CLTV. Assets with lower combined leverage are generally more competitive for pricing and approval. The senior debt position, debt maturity, and property cash flow all factor into the final structure.
Where applicable, the Standard Pref structure is designed to be non-dilutive to ownership control. Nectar operates as a preferred equity investor — not a co-owner or co-GP — with defined return rights rather than profit-participation rights. The sponsor retains operational control of the asset throughout the investment period.
After receipt of a complete underwriting package (T12 P&L, rent roll, debt statements, appraisal, and sponsor background), Nectar can fund within 7 days. Preliminary deal reads are available within 24–48 hours of initial submission — no documents required to receive a preliminary read.
No documents are required to receive a preliminary deal read. To advance to full underwriting, Nectar will request: trailing 12-month P&L, current rent roll, existing debt statements and terms, a recent appraisal or broker opinion of value, and sponsor background information. The originations team guides this process in full.
Nick handles all Asset-Level Preferred Equity originations directly. No handoffs. No junior team. Direct access from first conversation to close.
Tell us about your deal. No documents required to get started. Preliminary read within 24 hours.
Thanks for reaching out. One of our originations principals will review your deal and respond within 24 hours. No documents needed at this stage — we'll guide the rest of the process.
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