Page 4 - The Life of a Project Brochure

The Life of a Project
Joint Ventures
In recent years, joint ventures in which investment banks and funds invest directly in real estate projects with local developers have become an increasingly important part of the real estate investment arena. Potentially the least expensive and easiest way to raise capital is by creating a joint venture. A joint venture is the coming together of two or more parties where each party is sufficiently actively engaged in the joint venture and has sufficient experience in the business of the joint venture. The formation of a joint venture can be less expensive in terms of legal fees and easier because you don’t have to come under the scrutiny of securities laws. Our team can advise on structuring and negotiating joint ventures for real estate development, market penetration and risk sharing purposes. Our proven track record in advising clients to select the right joint ownership structure and negotiate all related agreements has allowed us to close transactions efficiently and economically. We have drafted and negotiated many complex joint venture agreements in the real estate industry for owners and developers.
Conventional or Alternative Financing
A project is typically financed with construction financing or another round of short-term “bridge” financing until the project reaches a threshold called “stabilization,” which is typically defined as a certain occupancy level (typically 90% or better) for a certain duration (typically three consecutive months). Upon stabilization, so-called “permanent” or long-term financing can be placed and used to take out construction financing. We can assist you with all levels of financing required for your project. Drawing upon our years of experience, we can assist you with all levels and types of financing required for your project, including Government-sponsored financings, such as Fannie Mae and Freddie Mac.. Often, we can introduce you to prospective lenders and investors. Because of our experience in representing lenders, we are able to cost effectively provide representation concerning all forms of acquisition financing. From engagement to closing, you can rely on us to manage the loan process and to keep you apprised of legal, procedural or other developments that impact the agency lending industry.
Tax Considerations
Our team brings a practical, solution oriented approach to complex tax issues. We can advise you on a broad range of tax issues associated with real estate transactions, as well as with forming, managing, expanding and dissolving real estate entities and ventures to maximize potential benefits.
We can assist with sophisticated transactions, including tiered partnerships and LLCs, sale leasebacks, tax exempt transactions, securitizations, multiparty agreements and reverse or deferred exchanges and advise on the tax ramifications of real estate related acquisitions, development, dispositions, financings and construction. We also can assist you with all aspects of historic tax credit properties, including the acquisition and rehabilitation of historic structures, negotiation and documentation of disposition and development agreements with local agencies, bridge financing, government and institutional financing, conservation easement donations, transaction structuring and tax credit syndications to raise equity from sophisticated corporate investors. In addition, we can provide advice in all areas of business taxation, compensation and retirement plans and estate planning.
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