Assuming the as is (appraised) value of the land is equal to the amount of equity a 3rd party lender would require to advance a construction loan and a permanent loan, the JV (and or you) would not need to come up with any cash since the land value would cover the JV's need to satisfy the lender's demand for an equity infusion. 

For example, Cap Rate doesn't include debt service, and that makes it more valuable, as it allows an apples-to-apples comparison of an investment, regardless of the financing or cash infusion.

You've gone down the rabbit hole so far that it would be difficult for you to just bail at this point (Speculation on my part but, it would be  difficult for me to bail with that type of capital infusion), and they know it. 

Units are in rentable condition, but all could use a cash infusion so the opportunity for limited forced appreciation is there; capped by market valuations for the area.Does this look like a deal you would do? 

If anyone knows the trick to getting an early infusion like that, I am all ears!

They have a goal of expanding to 10 offices within the next few years and building the business with no additional capitol infusions.

Fiscal responsibility is really tough when you get into investments that could require unpredictable and unending cash infusions.  

Not a horrible investment, but with a $60K cash infusion, your cash-on-cash return is only about 8%.

When you go to refinance in five years, you could find you have no equity, and you'd have to come to the refi closing with a substantial infusion of cash.If the numbers work for you, offer them a 10 year note with 5 year balloon.

@Travis McKee The Detroit Home Mortgage program that Huntington and 5 other banks are participating is, is only for Owner Occupied, not investors, Non Owner Occupied.While homeownership is great, there are is only so much capital in that town and non of the banks have figured out that they need to reach outisde of their markets to infuse the area with capital to get it t grow,