Buying Limited Partnership Interests in Commercial Real Estate

[Eric Grunfeld]

Good Morning:

A friend of mine has been presented with purchasing LP interests in a variety of Commercial Real Estate projects.

In order to do proper/thorough due diligence - what documents/information are needed to begin this process.

I look forward to your response.

All the best,

Eric 
 

[Zachary Inman]

Quote from @Eric Grunfeld:

Good Morning:

A friend of mine has been presented with purchasing LP interests in a variety of Commercial Real Estate projects.

In order to do proper/thorough due diligence - what documents/information are needed to begin this process.

I look forward to your response.

All the best,

Eric 
 

 Eric - Look at the operator, the market, then the deal (in that order). 

Operator:

- Look at the track record, full cycle deals, experience, team, investor base, and competitive advantage. 

Market

- Look at the population/rent growth, rent/income, job sectors, schools, and other fundamentals and match them with your criteria

Deal

- Look at strategy, full business plan, if they've done similar deals before with similar assets/markets, are the sponsors local to the deal, risk profile, headwinds/tailwinds, etc.