Question for the big time syndicators
I have an opportunity to invest in the development of a high-end retirement community in Atlanta. Big project with 5-year-plus horizon for return of capital. While I have personally done a number of direct single family and small multifamily investments, this would be my first foray into a syndicated deal.
And so here is my question: is a 60/40 profit split in favor of the sponsor within the range of reasonable "market" splits and where does it fall on the scale? I understand it varies deal to deal and sponsor to sponsor based on the strength of the deal, sponsor, etc. My impression is that the most "typical" range is from 40/60 to 60/40 and this would fall towards the higher end (and may well be justified as the sponsor has a solid history of successful projects). Also interested in the reasonable range of management and disposition fees. Syndicators, what say you?