JV

Are you a real estate developer looking for a JV Partner to invest in your projects?

Open Source Capital specializes in structuring JV proposals for developers that are demonstrating strong growth and exceptional potential.  Our managers and key associates are experts in identifying the proper JV partner relative to your company and current market conditions.  Few private business owners think about the wealth they may be able to create by forming ventures with JV partners.  Is your company interested in expanding into new markets or strategically increasing market share in selective markets?  If so Open Source Capital can help.

 

Open Source Capital has extensive contacts with investors and senior managers of many of today’s leading real estate investment funds and high net worth individuals.

 

AREAS OF OPPORTUNITY INSIGHTS AND STRATEGIES
Putting Operators and JV partners together
  • Identify JV partners in client’s specific markets
  • Contact JV partners on a confidential basis to gather information on desired product, markets, price points, etc.
  • Define the changes needed in your business to position your company for JV opportunities.
  • Provide viable candidates to either provide entry into a new market or expand your existing operations
Valuation Model
  • Prepare or review Developers financial information
  • Review product and evaluate competitive position
  • Discussions project on a confidential basis with local experts and brokers
  • Prepare the JV offering package
  • Value a project based on current market realities and structure versus based on successful past transactions
Transaction Assistance
  • Assist negotiations with targeted JV partners
  • Assist legal and accounting professionals with closing the transaction
  •  Assessment on the viability of various JV offerings being considered

 

Requirements

SPONSOR EXPERIENCE: Sponsors with 5 or more years of development experience.
INVESTMENT STRATEGY: Ground-up Construction or Value-add
RAISE AMOUNT: $1M – $200M
HOLD PERIOD: 3-7 years preferred
SPONSOR CO-INVEST: Minimum 5%
LEVERAGE: Senior loan Maximum 70%
RETURNS (CASH-ON-CASH): Minimum 8%
LEVERED RETURNS (IRR): Minimum 15-20%+  to investors
MARKET POPULATION: Greater than 40,000 people within 5-mile radius
PROPERTY TYPE:
  • Multifamily
  • Single Family
  • Townhouse
  • Condo
  • Retail
  • Office
  • Hospitality
  • Self-Storage
  • Mobile Home Park
  • Student Housing
  • Senior Housing
RESTRICTIONS: No unzoned or farm land