Waterfall Distribution Clause in a 90/10 Real Estate Joint Venture (with Preferred Return; No Promote) | Practical Law

Waterfall Distribution Clause in a 90/10 Real Estate Joint Venture (with Preferred Return; No Promote) | Practical Law

A waterfall distribution provision that can be used in a limited liability company 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 preferred return for the investor member, but no promote for the operating member. 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 Preferred Return; No Promote)

by Practical Law Real Estate
Maintained • USA (National/Federal)
A waterfall distribution provision that can be used in a limited liability company 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 preferred return for the investor member, but no promote for the operating member. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips for both members.