A.CRE Consulting’s Post

Many of our clients come to us at different phases in their development timeline, looking for help structuring a capital stack that aligns with their project’s unique risks and opportunities. One common approach within the LP? 🤔 Class A investors to come in during the horizontal phase, taking on early-stage risk, while Class B investors join during the vertical phase with a focus on stability and passive returns. Stay tuned for next week's post where our very own Brian Schroeder will walk you through how to model this in excel. #CRE #CapitalStack #Equity #Waterfall #Development #RealEstate

  • Class A vs B Investors in
Commercial Real Estate
A Guide to Investment Structures
CLASS A
CLASS B
TIMING AND STRATEGY Typically enter during the early phases, often participating in deal structuring
and major decision-making
TIMING AND STRATEGY May join later or simultaneously, focusing on capital deployment with
streamlined involvement
INVESTMENT COMMITMENT Higher minimum investment
thresholds, usually $250k+
INVESTMENT COMMITMENT Lower entry points, commonly
starting at $50k-100k
RISK-REWARD PROFILE Greater potential returns, higher risk
exposure, more active involvement
RISK-REWARD PROFILE Moderate returns, proportionally
lower risk, passive participation
Brian Schroeder

Independent LIHTC & Capital Consultant | A.CRE Consulting, Financial Modeling & Underwriting Expert for Commercial Real Estate | MAC

1w

Excited to share how we're modeling this.

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