Waterfall Distribution Clause in a 90/10 Real Estate Joint Venture (with Promote and Preferred Equity) | Practical Law

Waterfall Distribution Clause in a 90/10 Real Estate Joint Venture (with Promote and Preferred Equity) | Practical Law

A waterfall distribution provision that can be used in a limited liability company (LLC) operating agreement for a real estate joint venture formed between an operating member, which is the minority member, and an investor member, which is the majority member. It includes a return of preferred equity and the distribution of a promote to the operating member if a preferred return is achieved. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips for both members.

Waterfall Distribution Clause in a 90/10 Real Estate Joint Venture (with Promote and Preferred Equity)

by Practical Law Real Estate
Maintained • USA (National/Federal)
A waterfall distribution provision that can be used in a limited liability company (LLC) operating agreement for a real estate joint venture formed between an operating member, which is the minority member, and an investor member, which is the majority member. It includes a return of preferred equity and the distribution of a promote to the operating member if a preferred return is achieved. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips for both members.