2014 ACREL FALL MEETING
BOSTON, MA
The Program: Essential Insight into Programmatic Real
Estate Joint Ventures
Josh Kamin
John Mallinson
Vytas Petrulis
THE PROGRAM: REAL ESTATE JVS
Basics of the Programmatic JV
Why and How Differ from Typical JVs
Essential Insight into Key Terms
THE PROGRAM: REAL ESTATE JVS
STRUCTURAL FORMS OF RELATIONSHIP
Holding Company
Framework/Deal Sharing Agreement
THE PROGRAM: REAL ESTATE JVS
NOT JUST “A” DEAL – A MARRIAGE
What Sponsors Look For in an Equity Investor
What Equity Investors Look for in a Sponsor
THE PROGRAM: REAL ESTATE JVS
EFFICIENCIES
Market Advantages (Capital Certainty & Deal
Flow)
Capturing Opportunities (time, effort, cost)
Negotiated Deal Terms
Process of Deal Execution
THE PROGRAM: REAL ESTATE JVS
DEAL SHARING AND EXCLUSIVITY
Sponsor vs. Equity Investor Preferences
Parameters of Exclusivity
 Time, Size, Asset Class, $$$ Amount, Geography
Pure Right vs. ROFO
Duration (Life of JV vs “Three Strikes”)
THE PROGRAM: REAL ESTATE JVS
POOLING
Types of Pooling
 Economic
 Management/Control/Decision-Making
 Defaults & Remedies
Sponsor vs. Equity Investor Preferences