Typical Deal Structures/Return Expectations for Ground Up Development?

Hello all,

I just graduated and have started working at a small developer (operating approx 300 beds only in our local market) that focuses primarily on student housing/multifamily. As we look to new markets, I've been doing research on typical deal structures and LP expectations for smaller, ground up developments of our product type. I understand that these things depend on the deal and every deal/LP is different. However, after talking to a few people, I've found:

• LP's expect at least between 15-20% return depending on the deal
• At least a 100 basis point spread between return on cost and the market cap
• A return on the cost of somewhere between 6-8%

Is the above accurate? would anyone change anything?

also, a few of my remaining questions.

• How does equity multiple as it relates to holding periods factor into this? Obviously, a longer hold period will yield a higher EMx, but do investors like to see a certain range of EMx, say, 3 years after stabilization? 5 years?

• How greatly would numbers like these vary across markets? Investment in riskier markets would result in higher return expectations, but is there any more to it than that?

• Are there any guarantees/benefits that are standard for LP's to expect in a partnership agreement?

• We use an equity waterfall model similar to the one I learned in school with a preferred return to the investor, multiple IRR hurdles, is this relateively standard?

Thanks for any input