Are there any anons out there who currently work or have worked at an institutional industrial developer?
Curious - what type of coinvest would you need for the jv?
I have seen some institutional folks walk away from their pretty nice gigs with a capital partner to set up their own dev firm, usually with the same or similar jv partners they were already working with. But I can't get my head aroudn the potential coinvest? I heard some groups don't want you raising the coinvest so will put that up too. You will obviously have a very small piece of the upside I imagine (5-10%?), but a good way to go off on your own.
By co-invest, do you mean your 5-10% from the JV? Assuming the JV is 90/10 or 95/5 split
yes so assume say 70/30 LTV....out of that 30% equity, usually a 90/10 or 95/5 say with a capital partner and sponsor in the jv. so $50MM deal, $15MM jv equity of which, say $750k - $1.5MM needed from sponsor.
Sitex is basically a wildly successful and scaled version of this business model. I’d try to get in touch with some of those folks, if they are willing to talk to you.
Curious why you think industrial co-invest structures are different than other asset classes..?
I don't necessarily, just pointing to the industry I am working in specifically.
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