Commercial real estate joint ventures provide an effective way to join capital with development and operational expertise. A sponsor who identifies a project for acquisition or development enters into a joint venture with an investment partner who brings the necessary capital and investment oversight. Most often, the parties structure such ventures through a single-purpose, limited liability company that owns and operates the project as its sole asset. Once the project is sold, the parties go their separate ways or, if the initial relationship was amicable and profitable, they may explore the possibility of entering into subsequent ventures on similar or different terms.
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