Bisnow Content Partner:

Ackman-Ziff

https://x.com/ackmanziff www.ackmanziff.com

Three Tips for Negotiating JV Equity

January 13, 2015 | 7:00 am ET Ackman-Ziff Gary Chance

We stopped by Ackman-Ziff, which last year arranged a dozen JV equity partnerships representing nearly $500M of equity raised (on top of $6B by year-end of pref equity/mezz/debt). Boston office managing director Adam Steinberg offered three tips on negotiating JV equity.1) Be comprehensive right off the bat. To maximize bargaining power, push the equity source to include all the significant terms in the LOI. Too often sponsors push critical details to the contract phase (post-LOI) only to discover they don’t like something and can’t easily turn back having cut loose other potential backers.2) Keep your options open. Maintain back-up choices for alternate partners. Gain bargaining power by ensuring your chosen investor knows it’s not the only interested party.3) Educate yourself. Know the market and push for aggressive (but not inconceivable) terms.

Adam will be attending the NMHC Conference in Palm Springs Jan. 20-Jan. 22. For more JV Equity advice from our education partner, Ackman Ziff, click here.

Continue reading this story with a free account

More About Our Sponsor

| Ackman-Ziff

Ackman-Ziff Real Estate Group is the industry’s preeminent boutique real estate capital advisory firm. In business for over 90 years, the privately held company offers a wide variety of cutting-edge commercial real estate capital markets solutions, including debt and mezzanine financing, preferred and joint venture equity, sponsor equity, and investment sales.

Subscribe to Bisnow's New York Newsletters

Related Stories

JVP Development Is Betting $37M Of Its Own Money That Frisco Is Ready For Spec Office

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

How Long Island Projects Can Cut Through Red Tape And Community Opposition To Cross The Finish Line

Empire State Building Observation Deck Hemorrhaging Visitors, Value

JLL Nearly Doubles Profits, Fueled By Leasing Rebound

Dewberry's Midtown Eyesore Quietly Resolves $75M Mortgage

Slate, Hudson Cos. Picked To Develop Massive Queens Housing Project

Newmark Posts Record Q2 Revenue, Holds Guidance Flat

BXP's 343 Madison Lands $1.2B Loan, Nears Deal With Equity Partner

Fed Holds Rates In Split Decision As Iran War Hampers Inflation Fight

Mamdani Adds Millions To Program Helping Retailers Negotiate With Landlords

Canadian REIT Buys Brooklyn Medical Office For $90M: The N.Y. Deal Sheet