New Syndication Forum!

[Bryan Hancock]

I am very excited that we have a special forum for syndication and fundraising for CRE now. There has been a group on BP for about a year that has grown considerably, but now we will have a forum on the main page.

I encourage everyone interested in raising funds for CRE to post here so that we can all learn from each other and get some money flowing to deals.

[Jilliene H.]

I've looked at $700 million in syndicated real estate transactions across 50 syndications in the last few months, so would be happy to share my experience if anybody needs help. We recently analyzed $315MM of that $700MM - few stats that may be interesting:

- Most real estate syndications have a preferred return to investors and a promote so that additional cash flow and appreciation is split between the investor and the sponsor

- Average preferred return was 8.5% (most common was 8%).

- Average promote was 67/33 - albeit none of them were actually 67/33, but there were a lot of 70/30 and 60/40 (i.e. 70% to investor, 30% to sponsor, etc.)

- Most include an acquisition fee of 1-2% paid to the sponsor

- Disposition fees are rare

- For sponsors that are not doing active property management, there was sometimes a 1-2% asset management fee paid on gross or effective gross revenues