Joint Ventures – Providing Equity
CWD, and our Management Partner Companies, seek value add and ground up development opportunities. We are equipped with a strong and cost-efficient laid out plan to bankroll the development acquisition and of value added Senior Care projects. The best options for this are:
1. Preferred Equity Program for New Construction
Information Needed to Evaluate a Project:
1. Project Executive Summary
2. Sponsor Bio, list of recent developments, photos and case studies, if available
3. Feasibility study and/or market study including rental and sales comps
4. Development model including a detailed budget, monthly cash flow from investment to disposition, and disposition analysis.
2. Sale / Leaseback
CWD, and our Management Partner Companies, seek value-add and ground up development opportunities. We are equipped with a strong and cost-efficient laid out plan to bankroll the development acquisition and of value-added Senior Care projects. In addition, our investors can provide a triple-net lease package in the 7.0% +/- interest only range that allows the properties bought from the operator or owner to be leased back to the operator. Additional Benefits for the operators include:
• Allows them to reinvest the earnings into existing operating platforms
• Free capital that has been invested in corporate real estate
• Generate new holdings for the property and succession planning purposes
3. GP Equity Placement available for the remaining capital stack behind the LP Investor.
Private equity real estate is often capitalized via a General Partner / Limited Partner joint venture or a “GP / LP JV”. Graphically speaking, it looks like this:
This structure is a marriage of convenience between two parties:
1) Limited Partners (LP’s)groups have money they invest in real estate but are resource and are strictly passive.
2) General Partners (“GP’s) include groups that possess expertise in acquiring and operating real estate in a geographic area and
are open to working with passive investors.
Deals that are capitalized under this structure involve the LP putting up the vast majority of total equity, typically up to 90%, with the GP putting up the remaining 10% plus costs for the capital to be obtained.