Structuring Redevelopment Acq With High Pricing
With the incredibly high valuations right now, I’m interested in starting a dialogue about how developers on the forum are creatively approaching new opportunities—specifically when the Land owner is willing to stay in the deal. I’m particularly interested in ways to reduce the upfront hit to the project cost via the land/asset contribution at full market value, by providing something even more fruitful on the back end to entice the owner. What are others doing at the development level, and if you’re an LP what unique structuring methods have you seen?
cpgame, pure crickets, that's where I come in. Any of these useful?
Any pros willing to rescue this discussion? RESC @shawn9236" Matt-Connors
I hope those threads give you a bit more insight.
Bump
We're in the process of structuring long term ground leases with lessor participation in the cash flow, as opposed to ground lease payments (hardly unique, I know).
That being said, also working on something where the owners come in at the bottom of the capital stack. Essentially the waterfall is from Senior Lender, then a (smallish) Mezz, we put our equity into the deal as a subordinate loan with a nice 14% return, and all residual goes to the landowner.
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