What is an equity partner in commercial real estate?

Answer 1

A commercial equity partner is a real estate investment firm that raises debt and equity for private real estate offerings. It seeks multi-tenant properties with stable cash flow. These firms are most interested in industrial properties and include office and retail properties.

Equity partners may mostly take decisions relating to the property of CRE. It also entitles them to receive a portion of the cash flow and any appreciation or depreciation that occurs from the property. Equity partners play a key role and are much helpful to the CRE. These partners are more willing to lend money for the business areas where no lenders agree to offer, and that too at a moderate interest rate.

They move faster than the banks in lending purposes and allow the CRE undertaking to close a time-sensitive deal quickly. Besides it, there is no obligation to pay the funds borrowed as they receive their payment in the form of a percentage of ownership.

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