MIAMI, FL - In a market where capital is still available but far less forgiving, the ability to structure deals with precision has become a defining advantage. As underwriting tightens and lenders place greater emphasis on downside protection, the “middle” of the capital stack, where preferred equity, mezzanine financing, and hybrid structures sit, has emerged as the most complex and actively negotiated part of a transaction. In this conversation, Emile Schachter, co-founder of WD Capital Group, shares how his principal-side experience informs the firm’s advisory approach, what credit committees are really looking for today, and why disciplined structuring is now the difference between deals that stall and those that close.
Your background includes Rialto Capital, Bridge Investment Group, a Fulbright, and a Master’s from Cornell. How does that principal-side experience shape the way you advise clients today?
It changes the conversation completely. When you have spent years underwriting B-pieces, evaluating credit risk in CMBS pools, and running acquisition due diligence on large portfolios, you develop a clear understanding of how institutional lenders actually think. At Rialto I was evaluating risk across billions of dollars in commercial real estate debt. At Bridge the focus was executing acquisitions within a large institutional platform and understanding how asset management decisions ultimately affect valuation. Those experiences allow us to translate a sponsor’s project into the language that credit committees respond to. At WD Capital we are not simply facilitating introductions. We are helping shape the credit narrative behind a deal.
You built WD Capital as a boutique firm in a market dominated by much larger platforms. What was the thesis?
The thesis was that complex transactions require precision. Large platforms do excellent work, but many sponsors working on sophisticated projects in the Southeast, particularly in South Florida, need an advisor who treats every transaction as bespoke rather than part of a volume pipeline. When Eduardo, Alvaro and I launched WD Capital we intentionally combined principal-side underwriting experience, investment banking discipline and family office insight. My engineering background also shapes how I think about capital structures. Every layer has to carry its weight or the system fails. We never set out to be the biggest firm in the room. Our focus is being the most precise.
How would you describe the current capital markets environment in South Florida?
Capital is available, but it is far more disciplined than it was a few years ago. Lenders and equity partners are applying greater scrutiny to leverage levels, execution timelines and sponsor credibility. Compared with 18 to 24 months ago, underwriting assumptions today are more realistic and capital partners expect clearer alignment between risk and return. In many ways that is a healthy development for the market.
What are credit committees most focused on in today’s underwriting process?
Downside protection. Lenders want to see realistic absorption assumptions, construction budgets with appropriate contingencies and a clear picture of sponsor liquidity. Stress testing has also become more rigorous. Deals are evaluated under scenarios such as interest rate increases, construction delays or slower lease-up periods. Sponsors who present that level of preparation move through credit committees much more efficiently.
Where in the capital stack are you seeing the most adjustment right now?
The middle of the stack. Preferred equity pricing has widened, mezzanine structures are being underwritten more conservatively and hybrid capital layers are adjusting to reflect both higher borrowing costs and the risk profile of each project. For an advisor this is where much of the work happens. Structuring those layers requires alignment between lenders, equity partners and sponsors so that everyone understands how risk and returns are distributed.
What differentiates sponsors who are successfully closing transactions in this market?
Preparation and realism. The sponsors who are executing in today’s environment come to the table with disciplined assumptions, thoughtful capital structures and clear answers to the questions lenders will inevitably ask. We often tell clients that a deal should be largely underwritten before we begin approaching capital partners. The more clarity a sponsor brings to the process, the smoother the transaction becomes. Fernando de Núñez y Lugones of Vertical Developments summarized it well after one of our recent closings: In complex projects the differentiator is having a capital partner who understands both the financial framework and the realities on the ground.
How are family offices and private capital approaching South Florida today?
Private capital still sees South Florida as one of the most compelling long term real estate markets in the United States. The demographic growth, business friendly regulatory environment and continued migration trends support sustained demand across asset classes. What has changed is selectivity. Family offices are being more deliberate in how they deploy capital and are focusing on experienced sponsors with clearly defined risk parameters. The appetite remains strong, but expectations are higher.
What role does structured capital play in making transactions feasible in this environment?
Structured capital has become essential. Preferred equity, mezzanine debt and hybrid instruments often bridge the gap between what senior lenders are willing to provide and what a project requires to move forward. The key is thoughtful integration. Structured capital works best when incentives are aligned across the entire capital stack rather than simply filling a gap in the sources and uses.
You have placed capital across multifamily, condominium, hospitality and mixed-use assets. Does the advisory approach change by asset class?
The fundamentals of structuring remain consistent, but the underwriting conversation changes depending on the asset class. A stabilized multifamily project involves a very different credit discussion than a luxury condominium sellout or a hospitality conversion tied to a brand flag. Each asset class has its own lender relationships, underwriting language and execution risks. Understanding those differences allows us to position each project appropriately within the capital markets.
Looking ahead, where do you see opportunities in the Southeast capital markets?
We expect a continued environment of disciplined capital deployment rather than a return to the underwriting conditions of 2021. Sponsors with strong fundamentals, realistic execution plans and institutional quality presentations will continue to attract capital efficiently. Markets like South Florida, which benefit from structural demand drivers, remain well positioned to capture both domestic and international investment. Advisory firms that can structure transactions precisely and move efficiently will continue to have an advantage.
About WD Capital Group: WD Capital Group is a boutique commercial real estate capital markets advisory firm based in South Florida specializing in debt, preferred equity and joint venture equity placement across multifamily, condominium, mixed-use and hospitality assets throughout the Southeast United States. The firm was co-founded by Emile Schachter, Eduardo Pelaez and Alvaro Cardenas, combining principal-side real estate investment experience, investment banking expertise and family office insight. WD Capital has executed more than $600 million in total transactions.