GDC Investments Type: Builder Equity

The following are the general terms under which GDC would enter into a joint venture with a builder to purchase, develop and construct a single asset.  These parameters may be adjusted for the specific asset under consideration at the discretion of GDC.

Capital Contributions.

Builder would contribute 10-20% of the required capital with GDC providing the balance. Builder contribution shall be dependent on deal size and profitability and shall be made from the builder’s internal equity.

Distributions.

Net Proceeds shall be paid out in accordance with a waterfall that will be established for the asset being considered.

Financing.

If the partners so elect, builder shall procure Acquisition and Development Financing and/or Construction Financing as appropriate. Builder shall provide completion, payment and/or interest guarantees as required by the Lender.  Such loans may be secured by a trust deed secured against the asset.

Fees.

Builder shall receive a Management Fee of 3% of Gross Revenues, paid monthly over the life of the project.  GDC shall receive a fee of 1% of Gross Revenues, paid upon the closing of each unit to a homebuyer.

Advantages to Builder:

Rapid decision making process
Stable capital resources
Practical approach to underwriting
Flexibility in structuring transactions

Do you have a project you'd like to partner with GDC Communities on? Contact Dave Waters, Director of Corporate Development at (858) 523-9090.

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