Multifamily value-add JV
$30,000,000 total capitalization
| Senior loan | 65% | $19,500,000 | Bridge or agency loan |
| LP equity (JV partner) | 31% | $9,450,000 | 90% of the equity |
| GP equity (sponsor) | 4% | $1,050,000 | 10% of the equity |
The sponsor contributes 10% of the $10.5M equity and earns a promote above the preferred return, so the GP share of profits can be well above 10%.