Camp Avenue

Principals of Valorem had the exclusive opportunity to make a $5 million preferred equity investment in a single purpose limited liability company that is developing 170 condominium units in a desirable, infill location in Stamford, Connecticut. The developer’s principals contributed $3 million of common equity (approximately 37.5% of the total equity), which was subordinate to Valorem’s investment. Given the structure of the transaction, the location of the property in a strong and supply constrained submarket, the investment represented a unique opportunity to generate an attractive riskadjusted return. The significant equity commitment by the developer, as well as the full payment and completion guarantee that the developer executed with the construction lender, places the investment in an attractive position in the overall capital structure and also demonstrates the developer’s confidence in the transaction.