Here's the scenario. You are developer / GP partnering with a land owner. You don't start the project until you secure a 100% prelease. Your deal with the landowner could take a variety of forms--let them ride sidecar for project level returns, or give up a share of the GP promote (not ideal).
What maximizes the GP EM under this scenario if all financial engineering options are on the table? Do you lever the deal at 95% LTC and not bring in an LP at all? Do you increase leverage and bring in a co-GP and promise them something LESS than project level returns but still decent (ie 15% LIRR)? Do you offer the land partner some defined IRR and lever deal to 90-95% and keep all cash flow above that hurdle (ie prompting off land owner)?
Would a lender go this high on leverage if prelease is solid credit?