What is the Role of the General Partnership Team in a Multi-Family Syndication Deal
The general partnership team, also known as the sponsor, plays a key role in a multi-family syndication deal. They are responsible for identifying and sourcing potential properties, conducting due diligence, structuring the deal, raising capital from limited partners, and managing the day-to-day operations of the property.
The sponsor is typically the one who brings the deal to the table, and they are the ones who negotiate the purchase price and terms of the property with the seller. They also work with legal and financial professionals to create the partnership or LLC structure and create the offering materials for the limited partners.
Once the property is acquired, the sponsor is responsible for managing the property and maximizing its value. This includes overseeing the property management team, implementing revenue-generating strategies, and making any necessary repairs or renovations.
The sponsor typically also has a management fee and a percentage of the profits, which incentivizes them to make the deal profitable. They also typically retain a first right of refusal to purchase the property at a predetermined price in the future.
The success of the deal depends on the sponsor's ability to identify and acquire profitable properties, and to manage them effectively.
