A syndication is a real estate investment structure where a sponsor (GP) raises equity from passive investors (LPs) to acquire a property. Common in LA multifamily for deals above $5M.
The sponsor identifies the deal, structures the debt, and manages operations. LPs contribute capital and receive distributions per the waterfall structure. Legal structure is typically LLC or LP with a private placement memorandum (PPM) and securities compliance (often Regulation D).
LA multifamily syndication activity recovered in 2025 after slowing in 2023. Typical deal sizes: $5M–$50M total cap. Sponsor's ability to raise capital depends heavily on track record with past LPs — this is a relationship-driven part of the market.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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