JV with SDIRA Investor

[Jeremy Dymond]

This is my first post. I hope I didn't make the rookie mistake of asking something that has already been asked and answered. I looked all over the board and haven't found this specific situation. I am currently putting together a project through a JV. I will be the manager of the project from start to finish. I have an investor that wants to use his SDIRA as his portion of the capital. As he will maintain "arms length" from the project, I believe we have satisfied the first criteria as an eligible investment for a SDIRA. His concern, and also I'm personally curious, is around UBIT. Being that this is a project with the sole intent of building new construction for the purpose of sale, I know this eliminates the rental scenario that would prevent UBIT. Understanding that the most appropriate answer is to consult a tax attorney, which he is, can anyone shed light on the tax implications for him (more specifically, his SDIRA) in this scenario? TIA.