Eyzenberg & Company structured and arranged preferred equity and senior debt to capitalize the purchase and pre-development of 50 acres in Lady Lake, FL.
Challenges
The newly formed partnership was in the process of executing its first acquisition, involving a large, multi-use land parcel segmented into five distinct development zones. Pre-development financing typically carries low leverage, creating a significant equity gap that needed to be bridged. Additionally, small-scale preferred equity is often uneconomical for institutional capital providers. The transaction also faced appraisal challenges, as initial valuations failed to incorporate critical components of the sponsor’s business plan, which would unlock significant value.
