Commercial Real Estate Syndication Plans

The critical considerations that must be "baked into" each syndication plan approach include:

• Investment leverage.  The condominium plan is limited to the construction phase capital expenditures for the last month of the construction phase.  The corresponding percentage of the total space plan must be less than the pro-rata contributions the net sales proceeds provide (e.g.: if the condominium sales plan is intended, upon sell-out, to provide 12% of the total project development budget, the corresponding portion of the project space plan required to fulfill the sales goal must be less than 12% of the total space plan).  In some cases, this will require a significant amount of creativity and expertise to achieve (you'll want Rainmaker to create your plan to maximize this opportunity).

• Equity Investor Cutoffs.  The condominium plan and the TIC plan approach lend themselves to reducing investor participation to a specific time period and a finite return that is commensurate with the risk accepted by the investors.  In particular, the TIC plan construction pool risk investors can be limited (and are routinely limited) to participating in the construction phase with a second level of TIC syndication plan sales proceeds being used to retire the construction pool risk investors without necessarily decreasing the developer's long-term incremental equity enhancement and investment income sharing.

Contact Rainmaker Marketing Corporation and get the facts.