The MHC Syndication Report – Edition #6

Company Updates

Upcoming Webinars: We are excited to announce three upcoming webinar sessions in February, designed to accommodate various schedules. The sessions will be held on February 25, 27, and 28, all at 11 AM CST. These webinars will delve into syndication investing and provide insights into our company’s vision and goals. We encourage you to attend the session that best fits your availability.

Educational Series: We have published the sixth article in our “Foundations of Multifamily Real Estate Investing” series on LinkedIn: “How to Vet a Syndication Sponsor: What to Look For.” This article provides guidance on evaluating syndication sponsors to ensure alignment with your investment objectives.

Current Deal Pipeline

Our team continues to actively search for promising multifamily investment opportunities. While we have not secured a new deal at this time, we remain diligent in our efforts to identify and acquire high-quality assets that align with our investment criteria. We will keep you informed of any developments.

Market News

Warehouse Leasing Prices Remain High Despite Declining Demand: A significant reduction in new warehouse construction has led to sustained high leasing prices, even as demand decreases. This trend indicates that tenants may continue to face elevated rents in the near future.?

National News

Multifamily Market Faces Challenges Amid Rising Rates and Increased Supply: The multifamily sector is encountering hurdles due to rising interest rates, uncertainties surrounding income growth, and the introduction of 500,000 new units. These factors are expected to slow down multifamily transactions in 2025.?

Educational Corner

Syndication Term of the Week: Waterfall Structure

A Waterfall Structure in real estate syndication refers to the method by which profits are distributed between investors and sponsors. It outlines the order and conditions under which cash flows are allocated, often involving multiple tiers with specified return thresholds. For example, initial profits may be distributed to investors until a preferred return is achieved, after which remaining profits are split between investors and sponsors according to predetermined ratios. This structure aligns the interests of both parties and incentivizes performance.

Call for Referrals

We are expanding our network of investors interested in syndication opportunities. If you know someone who might benefit from our offerings, please refer them to us. Your support is greatly appreciated.

Stay connected for more updates and insights in our next edition.