Stephen P. Katz, and Abby Weiner, Partner and Senior Counsel, respectively, in the firm’s New Jersey office, co-authored a bylined article entitled “Potential Risks of Taking Equity Stakes in Construction Projects” that published in the April 2018 issue of AGC of America’s Newsletter ConsensusDocs.
The article describes the risks and rewards, and issues to be considered, when contractors’ clients take equity stakes in projects to be developed. The equity is usually in the form of equity in a limited liability company which owns, or will own, the real property on which the project will be built and the improvements. Issues may include management, capital calls, distributions, transfers, type of investments, guarantees and pledges.
Special thanks to Frank Rapoport for his contribution to this article.