Multifamily Syndication Refinance Implications for LP Investor

[Jordan Burnett]

Hey guys,

I'm looking for some guidance on how to know what the implications of a refinance are for a Limited Partner in a multifamily (or other) syndication offering. If it's not explicitly stated in the PPM, is the expectation that a limited partner will retain their existing ownership stake and equity split in the deal after a refinance? 

Where would this language typically be in a PPM, and what language have you typically seen in offerings that spells this out? 

I have seen language in regards to preferred return and distributions upon refinance, but not in relation to ownership stake. 

I have read Brian Burke's latest book and he mentions that some sponsors may "buy out" your ownership position in the deal upon a refinance, which would eliminate the desired "infinite return" that comes from a refinance. 

Thanks in advance.