Joint Venture Equity

Joint venture equity partners can provide up to 95% of the total equity required for a commercial real estate project. Unlike preferred equity, joint venture equity is common equity with unlimited returns. A joint venture equity partner will be paired with a general partner, which may be a developer or a sponsor that focuses on a unique strategy (i.e., value add multifamily properties in the Midwest). The General Partner’s responsibility is to source, close and execute the business plan on the project. The General Partner’s responsibilities include but are not limited to sourcing the acquisition, funding all earnest money and pursuit costs, managing day-to-day operations and executing the exit strategy. Joint venture equity partners will require returns and ownership that is commensurate with their principal investment and risk profile of the project. Joint venture equity can be sourced from a variety of private capital providers including funds, family offices and real estate investment trusts. Joint venture equity providers are seeking focused operators and developers with a strong track record of executing on their strategy.