Syndication
A syndication is a structured private offering in which a sponsor pools capital from multiple passive investors (typically accredited) to acquire a specific commercial property or portfolio.
What it means
Syndications are the most common structure for private CRE capital raises. They are typically formed under SEC Regulation D (Rule 506(b) or 506(c)) exemptions and sold to accredited investors. A typical structure: single-asset LLC, sponsor as manager, LPs as members, 70/30 or 80/20 preferred-return waterfalls with a promoted interest above hurdles.
Syndications are illiquid — capital is locked in for the hold period (typically 3–7 years) with no public market. Distribution cadence varies from monthly to quarterly to annual.
Related terms
Keep reading