are you sharing those losses with LPs?  

Now the construction project is done, those 5,000 workers are gone, and they took the economic stimulation they were providing with them.Just like how some of those oil boom towns in North Dakota are appearing on these types of lists.

Quote from @Mike Dymski: There is not much that an LP can do once the transaction closes.There's not much an LP can do for that particular investment, but performance and communication from that sponsor can influence you (or other LPs you know) on doing additional deals with them.

Minimum preferred return is going to be very dependent on the LPs sophistication and net worth.My fiance is a physician and I've met some really prominent orthopedic surgeons in her medical group at various functions.

Once the preferred return is achieved then a split of the remaining cash flow/profits between GPs and LPs is split. 50/50 split is also common.

The few areas I've seen some continued activity are institutional funds that are related to foreign LPs (i.e.sovereign wealth funds).

That property, back then, had yielded a 5 multiple and was still averaging an IRR net to LPs north of 20%.  

Interestingly the sponsor structure the deal high on asset management, and no carry interest (which based on this structure, LPs and sponsor interest are not 100% aligned).

This is unlike most other forms of real estate private equity such as LLCs, LPs, Private REITs, etc. where a large portion of the potential appreciation is given to the sponsor typically thru a waterfall splitWhen a DST 1031 property is sold, the investors are free to do another 1031 exchange into any type of “like-kind” replacement property.

Will they introduce you to real LPs?