Structuring Equity Interests in Real Estate - 2019

Originally presented on September 27, 2019

Strength in the real estate market has shifted the balance of negotiating power among equity investors, developers and promoters.  Investors eager to participate in certain transactions are more amendable to developer terms. Developers, sensing there’s more capital chasing deals, are more emboldened to press their terms – and fees.  Deal terms – forms profit participation, preferred returns, fees, etc. – are reflecting these realties. Still, knowing the tide will turn, investors are eager to secure their investments.  This program will provide you with a detailed discussion of structuring and drafting an equity investment in real estate, including forms of profit participation, related security and guarantee issues, information and control rights, and withdrawal or sale rights.  

• Form and timing of initial investment, and subsequent capital calls
• Preferential return of initial capital and preferred claim on profits
• Information rights, management rights, right to take control on certain events
• Form of equity interest as choice of entity in the deal
• Withdrawal, sale or liquidation rights for the equity investor

Speakers: Richard R. Goldberg, Ballard Spahr, LLP, Philadelphia, PA

NOTE: This program was originally produced as a telephone seminar and is available on demand in streaming audio. This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics or elimination of bias credit.