Recap rather than sell

[Jon Kaplin]

I have a 3 property small industrial portfolio I inherited from my father and currently manage across North Carolina. I had listed for sale but didn't get the price I was looking for with treasury moving a ton and now an investor has offered to buy 51% interest to invest into the property so would be cash in my pocket mostly with some going to fix up the property. He is going to manage the assets (reasonable fees) - I'm too tired for this day to day. He is buying for a fair # but ~10% below where I wanted to sell. He will make distributions and we plan to sell in 5-10 years and / or 1031 into something else - he owns a bunch of real estate and has done this with other owners. He is a reputable investor that is vetted through a couple parties I trust and the JV is reasonable - had my attorney review.

No transaction costs to broker.

I have never heard of people doing this - Is this a common structure? Has anyone does this before and been successful? Anything to look out for?