Private Equity Capital & Commercial Real Estate Development
Fueling Growth. Structuring Capital. Building the Future.
At Estates of Elysium, we connect investors, developers, and operators with the capital and strategic guidance needed to bring commercial real estate visions to life—nationwide. From value-add multifamily projects to industrial redevelopment and mixed-use verticals, we help structure private equity investments that maximize returns and minimize risk.
With deep experience in equity structuring, deal sourcing, and navigating market cycles, we specialize in identifying opportunities where strategic capital makes all the difference.
Who Are the Key Commercial Real Estate Equity Investors?
Understanding the players behind commercial equity capital helps identify the best fit for your project:
1. Private Equity Firms
Goal: High-return projects like repositionings and ground-up developments.
Strength: Flexibility, speed, and risk tolerance.
Example: Funding a mixed-use development in a high-growth submarket.
2. Family Offices
Focus: Wealth preservation and generational growth.
Strength: Patient capital, relationship-based.
Example: Acquiring Class B multifamily for long-term rental income.
3. Institutional Investors
Includes: Pension funds, insurance companies, sovereign wealth funds.
Focus: Core and core-plus assets with steady yield.
Strength: Deep capital reserves and stability.
4. REITs
Structure: Public companies investing in income-generating real estate.
Strength: Liquidity, transparency, dividend income.
Example: Investing in a REIT focused on logistics and warehousing.
Understanding the Capital Stack
The capital stack outlines the hierarchy of capital used to finance a commercial property. It determines both risk exposure and return potential.
Capital Stack Structure (Top to Bottom):
Senior Debt – Lowest risk, gets paid first.
Mezzanine Debt – Higher interest rates, second lien.
Preferred Equity – Priority return but limited upside.
Common Equity – Highest risk, highest potential returns.
Common Equity investors are last in line for repayment—but also receive the largest share of profits if a project performs well. Understanding the Capital Stack
Preferred Equity vs. Common Equity in Commercial Real Estate
Understanding the difference between preferred equity and common equity is crucial when structuring or joining a commercial real estate deal. Each plays a different role in the capital stack, with distinct risk and reward profiles.
Preferred Equity
Preferred equity sits above common equity in the capital stack but below debt. It’s often used to fill funding gaps between debt and common equity.
Key Characteristics:
Priority Payouts: Receives returns before common equity holders.
Fixed or Preferred Return: Often structured with a targeted annual return (e.g., 12–30%).
Less Risk Than Common Equity: Protected to some degree from underperformance.
Limited or No Control: Usually no voting rights or say in management decisions.
No Guaranteed Repayment: Not considered debt—no required monthly payments—but preferred in the waterfall.
Use Case: A development firm is building a $250 million mixed-use tower in Houston. The senior lender covers 65% of the cost, and a preferred equity group contributes $40 million. In return, they receive a fixed 10% annual return, paid before common equity sees any profits.
Common Equity
Common equity is the most junior position in the capital stack—but it also carries the greatest upside.
Key Characteristics:
Last to Be Paid: Receives profits only after all other capital is repaid.
Unlimited Upside: No cap on returns if the project performs well.
Highest Risk: Takes the first hit if the project underperforms.
Ownership Rights: Often includes voting rights and management control.
Residual Profits: Earns what’s left after everyone else is paid.
Use Case: The developers and sponsors behind a $180 million industrial park project invest $25 million of their own funds as common equity. If the project is successful and sells for $260 million, they stand to receive the largest share of profits—after all debt and preferred returns are paid.
When to Use Each?
Preferred Equity: Ideal for investors seeking steady returns without full ownership responsibilities.
Common Equity: Best suited for investors or partners looking for control, long-term growth, and strong upside—even if it means accepting more risk.
Pro Tip: Many large institutional deals use both preferred and common equity to create attractive return structures for different types of capital partners.
Metrics That Matter in Equity Investment
When evaluating a commercial real estate equity opportunity, key performance indicators can guide your strategy:
Equity Multiple: Total return on equity. (e.g., 2.0x = double your money)
IRR (Internal Rate of Return): Annualized yield over the life of the investment.
Cash-on-Cash Return: Annual income as a percentage of equity invested.
Preferred Return: The minimum return owed to preferred equity holders before common equity profits are paid.
Exit Strategy & Hold Period: Critical for timing your return expectations.
Investment Strategies: Tailored to Your Risk Profile
We help equity partners identify opportunities based on their return expectations and risk appetite.
Core
Stabilized assets in prime locations
Low risk, long-term cash flow
Example: Fully leased office park with credit tenants.
Core-Plus
Slight value-add potential
Moderate risk, income + upside
Example: Light renovation of stabilized apartments.
Value-Add
Operational or physical improvements needed
Higher returns, moderate-to-high risk
Example: Repositioning an outdated hotel into co-living.
Opportunistic
New development, distressed, or ground-up
High risk, high return
Example: Urban infill project with major upside potential.
How We Help Raise Capital for Your CRE Projects
At Estates of Elysium, we structure and align capital with the right projects, nationwide.
Capital Sourcing Options:
Private Equity Funds
High-Net-Worth Individuals
Institutional Co-GP Partners
Debt + Equity Blends
Preferred Equity Placement
Syndications
We tailor capital stacks to match project needs—whether it’s a $5MM multifamily rehab or a $120MM industrial development.
Technology
Streamline your commercial project with data-driven financing,
Preferred equity isn't about speed — it's about strategy. At Estates of Elysium, we specialize in matching experienced sponsors with aligned capital partners through a curated, data-driven process. Our goal is to place equity that strengthens your project and supports long-term success — not just fill a funding gap.
Strategic Capital Placement
Our deep relationships with family offices, private equity groups, and institutional investors ensure that sponsors are paired with capital sources that match their vision, timeline, and risk profile.
Data-Driven Deal Positioning
Using current market intelligence, investor sentiment, and underwriting insights, we help sponsors position their deals for optimal equity placement.
Curated Matchmaking
We take time to understand each sponsor’s background, the strength of the project, and market fundamentals — then tailor an equity structure that works.
Efficient, Transparent Process
Our tech-enabled process streamlines documentation, keeps communication flowing, and gives sponsors real-time visibility into progress.
Why Work With Estates of Elysium?
Whether you're investing, raising equity, or seeking strategic advisory—we’re ready.
Partner with Estates of Elysium for your next commercial real estate equity deal and take advantage of a capital network built for serious growth.
Nationwide Reach, Boutique Experience:
From Texas to the Midwest to coastal metros, we bring a national network of capital partners with a boutique, high-touch experience.
Investor-First Philosophy:
We prioritize aligned incentives, market expertise, and long-term success—because when you win, we win.
Expert Deal Structuring:
We work with developers, operators, and sponsors to tailor capital structures that fit every phase of your project—from acquisition to disposition.
Frequently Asked Questions
Answers to Your Private Equity Questions
Q: What is a private equity investor in real estate?
A: A private equity investor provides capital in exchange for an ownership stake in a commercial real estate project. They earn returns through cash flow and/or property appreciation.
Q: What types of projects attract private equity?
A: Private equity tends to favor value-add, opportunistic, or ground-up development deals with strong return potential—often where traditional lenders won’t go.
Q: How do I structure a capital stack for my next project?
A: We help clients layer senior debt, mezzanine, preferred equity, and common equity to create optimal funding strategies based on project risk and investor goals.
Q: How is Estates of Elysium different from other capital advisors?
A: We don’t just help source capital—we build strategic partnerships. Our hands-on approach, nationwide deal flow, and emphasis on transparency, speed, and alignment make us a trusted choice for real estate sponsors and investors alike.
Resources
-
Private Equity’s $500 B Dry–Powder "Deadline” Shaping CRE Opportunities
Learn how this surge in available capital is driving more liquidity and better pricing across the CRE market, and why this matters whether you’re placing equity or seeking it.
-
CRE Equity Investors Pivoting into Private Credit
Understand how this shift toward private credit affects capital placement strategies and what it means for preferred equity offerings.
-
Niche Asset Classes in Focus: Data Centers, Seniors Housing & More
Investigate how specializing in these growing asset types can position sponsors for more attractive equity raises and better investor fit.
-
How PropTech & Data-Driven Underwriting Are Redefining PE in CRE
See how data-led deal positioning and smart tech integration elevate equity placement success in today’s market.