Pref Equity/Mezz Financing for 100 MF units in a Northeast Tertiary Market

Hey everyone,

I’m in the middle of pulling together two multi-family real estate deals totaling roughly 100 units in a tertiary Northeast market. Both parcels are adjacent, built around the same time, and of similar construction. I’m on the hunt for preferred equity or mezzanine financing partners interested in investing under $5 million in such markets.

Here’s what’s on the table:

Deal 1: Around 40 units located in a prime medical and educational hub. All units have been renovated, and there’s a solid opportunity to increase rents with minimal further investment.

Deal 2: A bit more challenging but with high potential. It involves about 65 units, with an appraisal suggesting an $8.5M value upon completion. I've secured a LOI to purchase it for $4.2M. Out of the 65 units, 41 are occupied and partially renovated, but 24 are currently vacant and need finishing touches. This deal is distressed, with the option to buy the note or purchase outright at a slight premium.

I'm projecting a combined IRR around 25%, with a strong possibility of cashing out significantly through refinancing.

I'm planning to close on both and manage them as a single package, and I have some capital to invest alongside any partners. I have also identified a 3rd generational property manager to operate the day to day and oversee the renovations.

Do you guys know any pref/mezz financing groups that would be into a deal like this? Any leads or insights would be hugely appreciated!