Our current portfolio consists of 10 properties, totalling $330M AUM.

The impact of penalties on loan options and business plans.

The real estate market has been affected by the rapid increase in interest rates, causing a gap between buyers and sellers. Although there are few forced sellers and most owners have rate caps in place, the imbalance between buyers and sellers makes it a challenging time to be a buyer.

Structuring the right deal is crucial in maximizing returns for an investment property. Understanding debt, equity, and risk are key components. A fair fee structure and preferred return can align interests between the sponsor and investors.

Preferred Return Vs Cash Flow

In this article, I’d like to explain the refinancing process within a real estate partnership structure, specifically focusing on preferred return and promote structure aspects. I’ll also discuss the fairness of certain deal structures and how they impact investors.

A 1031 exchange is a major tax benefit associated with real estate ownership, which allows the deferral of capital gains

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.