Why 506(c) Structures in Multifamily Syndications Are Becoming More Prevalent
We have been involved in the syndication of multifamily real estate since 2017. Back then the prevailing legal structure was the 506(b) structure. Today, things are changing. It is important for LP investors to know what these changes are and adapt accordingly. The 506(b) structure allows for the General Partner, or GP, to invite other investors into their deal with whom they have what the SEC determines as a substantial relationship. These are therefore private deals and not
