Recent Syndication Performance?

[Dave Meyer]

Hi All,

As an active investor in syndications, I'm curious to hear about recent performance across the community. Are your deals performing well? Any paused distributions? Capital calls? I'd love to get a sense of how LPs are fairing these days.

I'll start:

So far 5 of the 6 I am in right now are performing as expected. One has paused distributions but seems like it'll be fine in the long run. It has 5 years left of fixed debt remaining, which makes me feel okay about it.

What's happening to everyone else?

[Adrian Clapp]

I've invested in 20 syndication deals over the past three years. I've had one recent multifamily deal in Florida exit with a 32% IRR and one hotel deal in Atlanta refinance and return 110% of the original invested capital through dividends and the refinance and the hotel continues to make regular 16% distributions. That's the good news.

Many other projects have reduced or suspended planned CF distributions and I've also had a few capital calls in which I did participate since the business case still made sense (the MF in Florida had a capital call to finish construction and get through stabilization and it still returned the 32% IRR).

I expect almost all of the deals to be OK, just later exits than originally projected.

I am very concerned about one project and have already written it off in my head.  If I receive anything back, I'm considering it a win.

I've learned a lot about investing RE syndication deals over the past three years and have refined my criteria for investing.  I plan to continue to invest in a mix of both RE syndication and our own rental properties going forward depending on what makes the most sense and offers the best returns.