However, not only can the REIT default, leaving the LPs without value, they can also incur capital calls and other financial requirements that will force you to pay to play, ie to maintain your investment without dilution or wipeout. 

Not to say you are implementing these things to share with LPs to help build trust, but if you had me interested in investing, then went down a rabbit hole of all the ways you are protecting the investment, I would actually start to second guess my investment.But more to your practical question: the best way I have seen this done typically requires a fairly large scale. 

If economic conditions soften, the Fed may actually be forced to cut rates, which could stimulate demand again.Supply Constraints Still Matter – Even if demand slows due to reduced immigration, we’re still facing a housing shortage in many markets.

For those actively raising capital, what strategies are working best to bring in high-net-worth investors and LPs for your syndications?

JV as GP with LPs.  

Here are the key points:Reasons to participate in the capital call:It may allow the property time to stabilize and potentially sell within 24 months at a better price, avoiding a significant loss of LP-invested equity if forced to sell now in an inopportune market1.The additional capital can cover costs like rate caps and allow renovations to resume, which could help increase revenue and better position the property1.The operating agreement likely outlines the terms of the capital call that LPs agreed to2.Reasons to be cautious about participating:Capital calls can indicate the investment is not as sound as originally thought and is potentially at risk2.There is uncertainty around whether the additional capital will be enough to turn things around, especially if interest rates remain high and the market stays challenging for longer than expected4.LPs need to carefully consider if they would invest in the deal now based on the current facts, rather than just trying to avoid a loss on their initial investment4.Other important points:LPs should review the operating agreement, seek professional advice from their attorney, and ask the general partners detailed questions about the capital call2.If an LP is unable to contribute to a mandatory capital call, they may be considered in default and only entitled to the return of their remaining capital account balance, with no further distributions5.In summary, whether an LP should participate in a capital call depends on their individual assessment of the risks versus potential upside after carefully reviewing the deal specifics and getting advice from professionals.

I’m posting the link here to stimulate some conversation if anyone is interested.

For those with institutional experience—how would LPs and GPs typically respond to a large, single-market fund approach?

My suggestion is to designate a GP (or General Partner) that will kind of be the "spokesperson" for the group and the rest of the investors would be called the LPs (or Limited Partners).

You will find most LPs don’t have them and are gamblers or they have detailed ones and are investment bankers.