CRE Entity Structures

[Dimash Kudaibergen]

Hello guys,

I am currently in the midst of structuring my entities and would love some insight on how you syndicators structure yours as this will be my first deal as well as any advice.

Right now I am planning on creating an SPE, LLC to hold ownership to the underlying property and split it into Class A and Class B members. Class A contains "All Equity" including the investing members and my Sponsor, LLC to co-invest. Class B will include my Promote, LLC and be used to receive promote distributions in a capital event.

The only problem is that I feel like splitting the members isn't necessary on a small deal such as mine ($5M) and would only be useful on a bigger scale project. The only positives I see is that it creates clarity among distributions. 

Thanks!