Waterfall Distribution Question
We have a development deal in place like so:
-7% pref rate accumulating
-50/50 split of cash flows while in operation (even below 7% here)
-50/50 split after 7% at reversion

Can someone point me to a model like that, or will I need to have it built? I appreciate any insight.

thanks!
[{"id": "dkwxose", "text": "Unless I'm missing something, this is just a 50/50 deal. You're 50% of the equity, there's no \"promoted\" interest for the sponsor because it's a 50/50 deal. ", "replies": [{"id": "dkx4026", "text": "There's a 7% accumulated pref paid at reversion then 50/50. During operation/cash flow it's a true 50/50 split. ", "replies": [{"id": "dkxeiue", "text": "Ok - should be pretty easy to model. There's a capital account that accrues at 7%, no distributions are made to repay any accrued return until reversion. At reversion the waterfall distributes 100% of proceeds to pay off the accrued return on capital, second pari passu (50/50) to the LPs. ", "replies": [{"id": "dkxfws1", "text": "Yes! That was in my head but didn't know how to proceed. Thank you!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dkx7nya", "text": "What are the true equity splits?", "replies": [{"id": "dkx7otm", "text": "95/5", "replies": [{"id": "dky0n94", "text": "What did you invest in that got a 50\\50 split after a 7% in a 95/5 deal? That's crazy I've never heard of a promote that high. ", "replies": [{"id": "dky0qgh", "text": "I'm developing it... it's still a great deal for investors. They won't be disappointed. ", "replies": [{"id": "dky0trx", "text": "Out of curiousity what are you developing and where / how much money do you need? Even if it's a home run j can't see anyone agreeing to a 50/50 split after a 7% return, especially in ground up development. That's a ton of risk to the capital partner for not a lot of return ", "replies": [{"id": "dky2dap", "text": "Net lease single tenant deal. Last was great. This one should be too. ", "replies": [], "depth": 6}, {"id": "dkynhl1", "text": "I've done deals with pension funds that were 50-50 over an 8", "replies": [{"id": "dkzvinm", "text": "Wow that's an insane split. Must be nice....", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dkx90e1", "text": "Sounds like the 7% is a catchup. Model 7% on equity for the duration of the investment, then 50/50 thereafter. Once cash flow catches up to meet 7%, that gets paid first then 50/50 thereafter ", "replies": [], "depth": 1}]