All Forum Posts by: Michael Hill

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)?

Not considering this legal advice, but looking for a high level answer and/or if you can point me to an online resource that can explain teh difference.

My understanding is that under SEC Rule 506, Part D, NY requires real estate syndicators to file a Form 99:

https://ag.ny.gov/sites/default/files/pdfs/bureaus...

I'm trying to get a better understanding of what offering types fall under which NY regs, per page 8 (last page) in the link above, especially when it come to when GBL §359-e registration ir required or not.

Thanks