Multi Family Deal Structure

[Mitch Rubin]

I am currently in discussions with an owner of a three story property with ground level retail tenants and two stories of vacant space which was previously multifamily. The location is prime for rentals and the seller is a long time owner not interested in selling as he likes the cash flow from the retail. The property needs $1-$2 million in renovations to get the multifamily back online. 

I need to come back to owner with creative options in regards to a partnership/JV or potential seller note as a last resort. The thought is to insure the cash flow from retail passes through and that I can increase overall cash flow to owner. I am looking for creative structures that would be beneficial for both the owner and myself. Any past deal stories or ideas would be greatly appreciated.