Search
 

Equity Syndications Generate Near 8% Returns

LOS ANGELES—Realty Mogul scans 311 private placements totaling $5 billion in properties to bring professionals a tell-all 3Q14 report of real estate syndications space, GlobeSt.com reports in this EXCLUSIVE story.

By Kelsi Maree Borland | Updated on October 31, 2014

LOS ANGELES—Over the last 25 months, private real estate equity syndications generated a preferred return for investors of approximately 7.7% with a common figure rate of 8%, according to Realty Mogul‘s 3Q14 survey of real estate syndications. The survey, which GlobeSt.com has received exclusively, reviewed 311 private placements pulled from 182 private real estate investment companies. These private placements total $5 billion in properties, which had an average individual value of $18.5 million.

In addition to the favorable returns, the survey also shows that after investors are paid the preferred return, the transaction sponsors are paid what is known as a “promote,” or the extra share of the upside—much like a “carried” interest, of 29% of the excess distributable cash flow. The remaining 71% is divided among the investors.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.