Alignment of Interests
Property Management Fees: What LPs Need to Know
March 4, 2025
Commercial real estate is often billed as a passive investment. But if you’ve ever owned an income-producing property, you know that’s not the whole story. And commercial property management fees can play a big part in making or breaking your bottom line. From emergency plumbing calls (and in some cases on-site fires) to lease negotiations,…
Our Approach to Aligning Interests With Our Investors
Alignment of Real Estate Syndication Interests Starts With Shared Incentives In the alignment of every real estate syndication interests, the general partner (GP) and the limited partners (LPs) play different but interconnected roles. The GP typically contributes a smaller share of the equity but takes responsibility for acquisition, financing and day-to-day operations. Meanwhile, the LPs…
Understanding Waterfall Structures in Real Estate
Few concepts are more important—and misunderstood—than the real estate waterfall structure. At its core, a waterfall outlines how general partners (GPs) and limited partners (LPs) split profits and losses. But as investors know, what sounds simple rarely is. Sponsors should structure the waterfall to de-risk the investment for LPs. They accomplish this by prioritizing LP…