HFFS accesses equity capital for its real estate clients to establish project-specific and programmatic joint ventures or investment programs. These transactions typically involve the acquisition, development, recapitalization, or restructuring of multi-asset real estate portfolios.
Such co-investment vehicles can have a core, value-add or opportunistic approach, with a focus on specific property types and geographic areas.
In general, joint ventures are structured so the sponsor can receive incentive compensation upon achieving specified returns for the investors. The level of incentive compensation will vary according to the sponsor's co-investment, the strategy and risk profile. The sponsor may also receive market-based fees for services such as property management, development and leasing.