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Joint
Venture – Commercial real estate joint ventures come in many
different forms. However, the common factor among each of
them is that two or more entities join together to share
assets, capabilities, resources and expertise in order to
achieve a profitable project. Investment returns and profit
splits are negotiated among the partners based on a number
of factors particular to that transaction.
Example:
An elderly couple owns an apartment complex with excess land
zoned for office use. They have owned it for many years and
have no experience or knowledge in developing the land so it
has never been developed. They are approached by a real
estate developer with extensive experience in building and
owning office buildings. In return for putting the land into
the joint venture the developer offers to split the profits
50% / 50%. The elderly couple benefits from having the value
of their land maximized and the office developer benefits
from the equity in the land.
If you
require additional information, or would like to speak
to one of our commercial financing specialists, please call
us at 888.488.3807 or
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