ULI Washington- Capital Stacks 101: A Primer on Debt and Equity
Perhaps the most common question aspiring developers ask is “If it takes money to make money, then how do I get the money to do my first deal?” The simplest answer is to go shopping—in the capital markets—for the money needed to undertake a development project. The price to participate is, for debt, the cost of borrowing or, for equity, a portion of the project’s upside. As simple as that may sound, navigating the capital markets is complex because different sources of capital have different costs, different requirements, and a diverse range of participants. Lenders, as the sellers of debt capital, have one set of interests. Private investors (sometimes called limited partners, joint venture partners, or money partners) as the sellers of equity capital, have, relative to lenders, an entirely different set of interests. Public equity sources and government equity sources can each create yet additional levels of complexity when involved in a deal. For those on the buyer-side of the capital transaction, sorting out the many options and actually going through with the process of procuring capital is occasionally opaque and frustrating, but always necessary.
Please join the ULI Young Leaders’ Real Estate 101 Committee on Monday, March 13 for a discussion with capital markets experts on the ways that debt and equity work together to allow a developer to realize a vision and make a project happen. Speakers will include:
- Anthony Balestrieri, Director of Equity and JV Investments at MetLife Real Estate Investors
- Antonio “Tony” Marquez, Executive Vice President and Chief Lending Officer – Commercial Real Estate at EagleBank
- Ari Firoozabadi, President and CEO of Greysteel
Our guests will discuss what they look for in a development or investment opportunity and how they view different types of capital working together.
Please join us afterward at Ghibellina, located at 1610 14th Street, NW to continue the conversation and for networking and socializing. Special thanks to Studio Theatre for their continued sponsorship of Real Estate 101. DC’s premier venue for contemporary theatre, Studio Theatre has been committed to the Logan Circle neighborhood for over 35 years. Its current performance and training complex – incorporating a former car showroom – is a remarkable success story for adaptive re-use and urban revitalization.