A DOWNREIT is an arrangement between the owner of real property and a Real Estate Investment Trust (REIT) aimed at providing tax advantages to the property owner. The result is effectively a partnership with ownership units held by those who contribute properties to the venture. The DOWNREIT owns real estate either outright or as part of a limited partnership.
A General Partner is a member of a partnership whose liability is not limited. In any standard partnership, all partners are general partners by default, whereas a limited partnership must have at least one general partner.
A Joint Venture (JV) is an agreement between two or more parties to pool their resources for the purpose of accomplishing a specific task. This task can be a business activity or a property investment. Each party in the joint venture retains their individual profits, losses, and assets, while jointly sharing control over the project.
A limited partnership (LP) is a business structure where at least one partner is passive, with liability limited to their investment, and at least one partner with unlimited liability.
A Non-Traded Real Estate Investment Trust (REIT) is an investment vehicle that offers the tax benefits of a REIT while maintaining privately-held features similar to a limited partnership.
A partnership is an agreement between two or more entities to enter into a business or investment together, where each partner may bind the other within the scope of their arrangement, and all partners share liability for the partnership's debts.
A public offering is the sale of investment units to the general public, typically requiring approval from regulatory authorities like the SEC or state securities agencies. It's an essential method for companies to raise capital by offering their securities to a wide array of potential investors. This should be contrasted with private offerings, which target a limited group of investors.
Regulation D is a regulation of the Securities and Exchange Commission (SEC) that sets forth specific conditions under which a private offering is exempt from the registration requirements for a public offering.
Safe harbor refers to regulations or provisions designed to shield companies or individuals from legal repercussions, provided they adhere to specified guidelines or practices. These rules offer clarity and a guarantee of compliance, thus minimizing legal risk and ambiguity.
