08/28/2026
Preferred equity gets talked about a lot, but the simplest way to think about it is priority in the capital stack.
In a typical real estate investment, the loan gets paid first. After that, the equity investors receive distributions based on the deal structure.
With preferred equity, those investors are positioned ahead of the common equity.
In our current Icon on Pima 506(c) offering, the preferred equity carries a 15% preferred return.
After the senior loan is paid, the preferred equity is next in line to receive its return before the common equity investors.
The tradeoff is that the preferred return is capped at 15%.
Common equity sits behind the preferred equity, but has more potential upside if the investment performs well.
So the question is really:
Do you prefer priority and a defined return structure, or more upside potential?
I put a simple capital stack graphic in the comments that helps visualize it.
Happy to talk through how preferred equity works or answer questions about the current opportunity.
For accredited investors only. All investments involve risk. Review the offering documents for full terms and disclosures.
