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General Investment Criteria for Private Equity for Real Estate Development Joint Ventures
- Ground-up new commercial, retail, medical, mixed-use and multifamily properties in areas that are experiencing above average growth
- Including or in close proximity to major anchors
- In-fill land development focused on generating near term pad sales to national and regional owner/developers
- High growth locations due to long term economic fundamentals (e.g., job migration, energy, retirement trends, growing employment/income, etc.)
- Preference for competitively positioned projects in Sunbelt and Western US
- Subordination of developer/investment manager profit sharing to a return of principal plus a preferred return to investors/limited partners
- Full exit in less than 5 years of initial investment
- Private equity investment range of $5 million to $25 million per project phase
- Appropriate use of leverage
- Substantiated track record of superior returns on equity by developer in similar assets
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