Raising capital for a flex value-add project in Atlanta - should we go with single investor or continue our friends and family raise?
CRE Pals,

My partner and I are young but capable. We have a combined 20 years experience in CRE lending, brokerage, construction, acquisition, and management experience through various roles. We currently have a bank-owned flex/office facility in metro Atlanta under contract,  well below replacement cost at $64PSF. It is 84% vacant and we plan to renovate and retenant the building. My partner owns a similar building across the street that receives unsolicited offers at $120 PSF.

Total project is below $4.1MM and we are raising $1.4MM. We have raised approximately 70% of our LP capital from friends and family. We received an offer very similar to our proposed structure from a potential partner wanting 100% of LP equity. 

It is compelling to have a single partner, we could grow with him and it would make compliance/ IR significantly easier in some ways. They certainly will have more money for deals down the line.  But there are downsides about control and not having a granular group of investors.

Well what do you guys think?  Go with one LP partner or continue digging for smaller partners?
[{"id": "glexhwr", "text": "If you have already raised 70% of your goal it is a bit of bad taste to kick out your friends and family for the single investor. I think having one investor that you can grow with is preferential though. Can you have the single investor fill out the remaining 30% of this project and commit to working with them exclusively on the next in good faith?", "replies": [], "depth": 1}, {"id": "glhwagc", "text": "Are the terms similar?", "replies": [], "depth": 1}]