LSI 2010 Real Estate Joint Ventures conference materials.pdf

Gregory K. Johnson of Wright Runstad & Company
Preston R. Sargent of Kennedy Associates Real Estate Counsel, LP
Speaker 5: 11
Speaker 6: 11
5. Don’t Limit to Arbitration/Mediation in Development Deals
• Limited discovery rights
• Too many parties… cumbersome
4. Do Retain Right to be “Arbitrary and Capricious”
• Having the prerogative doesn’t require its exercise
• Circumstances evolve… conflicts arise
3. Don’t Constrain the Exit
• Avoid lock-out periods
• ROFR’s never… ROFO’s maybe (if carefully crafted)
2. Do Choose a Jurisdiction for Disputes
• Saves time and money
• Important for drafting purposes
1. Don’t “Marry” Someone You Don’t Love/Trust
• No such thing as a “good deal with a bad partner”
• With good partner you don’t need any JV Agreement
• With bad partner the best JV Agreement won’t save you
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TOP TEN “DO’s and DON’Ts”
(From the Deal Sponsor’s Perspective)
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Law Seminars International | Real Estate Joint Ventures and Funds | 02/08/10 in Seattle, WA