Syndication Close Out Structure
What are some options for closing out investors from a syndication deal, if you don't want to sell the property?
I've seen scenarios where there is a re-fi resulting in the invetors being being made current on preferred returns as well as receiving all their initial principle back, plus additional distributions (as available). From here I've seen 1) the preferred return goes away and the equity split continues 2) preferred return goes away and equity split shifts somewhat to syndicators.
In all cases I've seen modelled, the investors still retain an ownership %, is this typical? It wouldn't happen in a sale exit.
What some options for closing out investors at this point, inlcuding what would investors look for? Can you simply structure it where the return of capital, plus distributions at re-fi closes out the investors (Obviously, they would need to receive a satisfatory return, want to show good IRR on the project, etc)?