I understand the developer becomes the GP for the property and only puts up 10% of the equity, so typically around 2.5%-3% of the project costs. How often is this done on existing properties compared to new developments? Do most PE firms participate in the 90/10 split? What is the exit strategy for the PE firm?
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happens all the time with existing properties. i mean, the GP still needs to bring something to the table in order to participate in the equity. but yes, happens a lot.
exit strategy would be a sale, of course ...
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