Real Estate Syndication IRR + Equity Multiple 2027
Calculate syndication IRR + equity multiple 2027 — typical multifamily syndication targets 15-20% IRR, 1.8-2.2x equity multiple over 5-7 years.
Syndication Structure
Sponsor (GP) finds deal, manages property. Limited partners (LPs) provide capital. Distribute cash flow + refinance proceeds. Sale = exit + equity multiple realized.
Preferred Return
LP gets preferred return first (typically 7-9%). Then sponsor catches up. Remainder split 70/30 or 80/20 LP/GP. Waterfall structures vary.
Typical Targets
Class B multifamily: 15-18% IRR, 1.8-2.0x EM, 5-7 yr hold. Value-add: 20-25% IRR, 2.0-2.5x EM. Risk + time-horizon-adjusted.
Risks
Sponsor execution risk (most important). Market timing. Refinance ability. Asset class cycle (multifamily vs office vs retail). DD critical.
Source: REISA syndication standards, biggerpockets.com syndication analysis. Last updated: May 2026.