A significant amount of commercial real estate is owned by investors through indirect or illiquid ownership structures such as limited partnerships, limited liability companies, funds and other joint ventures. An investor's desire for liquidity may not always correspond with the holding period of the underlying asset(s). Owners and investors are frequently restricted from selling due to lockout restrictions, large prepayment penalties and defeasance costs and prohibitions on additional debt. Additionally, non-controlling, partial interests in commercial real estate transactions are illiquid and difficult to sell.
Madison acquires these illiquid investments from investors seeking to:
- Monetize Illiquid Investment Positions
- Re-Deploy Investment Capital
- Simplify Tax Reporting