Economic Conditions Change the Playing Field for Joint Venture Negotiations - Paul O'Connor
www.allenmatkins.com
The economic recovery is leading to a major uptick in real estate joint ventures, with many new players entering the market. But the playing field for joint venture negotiations has changed significantly. Financial partners are demanding more concessions. Among these are: larger co-investments from the developers; absolute control over major decisions including sale and refinancing; and the right to remove the developer from management without cause.
The economic recovery is leading to a major uptick in real estate joint ventures, with many new players entering the market. But the playing field for joint venture negotiations has changed significantly. Financial partners are demanding more concessions. Among these are: larger co-investments from the developers; absolute control over major decisions including sale and refinancing; and the right to remove the developer from management without cause.