Limited Partner

A limited partner is a passive, in terms of management responsibility, partner in a real estate investment. In a typical real estate partnership, the general partner (sponsor or GP) manages the day-to-day aspects of the investment strategy and brings local and property type expertise. The limited partner (or partners), typically brings the majority of the equity capital and only weighs in on critical decisions.

Click here to get this CRE Glossary in an eBook (PDF) format.