In our recent investment partnership, we introduced multi-investor class deal structures with Class A and Class B members, offering preferential terms for major investors. It’s essential to understand the differences between the pari passu nature of this structure and the senior/subordinate structure of a dual tranche equity structure, as they allocate risk and reward differently. Please review the detailed explanation provided for clarity on each investment structure.

LSCRE acquired Cranbrook Forest in July 2018, transforming it from a mismanaged property with high vacancy into a well-performing asset. Through strategic renovations, re-tenanting, and improved management, we successfully increased the property’s value and ultimately sold it for $22.1M, achieving strong returns for our investors.

LSCRE 2021 recap & 2022 plans: LSCRE achieved approximately $96MM in acquisition volume and $21MM in dispositions in 2021, and successfully launched our in-house property management company, Radiance Living. In 2022, we aim to build out Radiance Living’s construction capabilities and reach $250MM of acquisition volume in Texas, including new investments in Dallas-Fort Worth.

In this article, I discuss critical return pricing components in underwriting, including key metrics like IRR, cash on cash, and yield on cost. We explore how these factors play a role in determining the appropriate price to pay for an asset based on various deal profiles, financing scenarios, and return metrics.

LSCRE successfully acquired The Commons and implemented a massive turnaround plan, addressing deferred maintenance and crime issues. After refinancing, the property now delivers consistent cash flow to investors and improved quality of life to residents.

Unlock the potential of multifamily financing with these 8 secret strategies, explore these secrets and elevate your investment game today.

When evaluating an offering memorandum (OM), ensure you ask for pricing guidance, understand the seller’s story, and gather information on delinquency and crime. These crucial factors are often missing from OMs but are vital for making informed decisions.

In real estate partnerships, preferred returns can vary. The main difference is between an IRR hurdle, which prioritizes return of capital, and a promote on cash flow, which allows the sponsor to earn a promote on ongoing cash flows. Each has its pros and cons, so it’s essential to understand these structures before investing.

Quarterly reporting for real estate investments is crucial for investor communication, focusing on financial performance, distributions, and business plan progress. Emphasizing transparency through a “budget vs actual” table and regularly reporting cash positions and capital expenditures budget can greatly enhance trust and accountability. This practice not only benefits investors but also helps sponsors maintain focus and honesty in their underwriting.