A real estate syndication is a partnership between multiple investors who pool their capital to purchase and manage a property that would be difficult or impossible to acquire individually. This investment structure allows accredited investors to participate in commercial real estate deals typically reserved for institutional investors or high-net-worth individuals.

In a typical syndication, there are two main parties: the sponsor (also called the syndicator or general partner) and the limited partners (passive investors). The sponsor identifies the investment opportunity, conducts due diligence, arranges financing, and manages the property. Limited partners contribute capital and receive a share of the profits without day-to-day management responsibilities.

Syndications are typically structured as Limited Liability Companies (LLCs) or Limited Partnerships (LPs). The offering documents, including the Private Placement Memorandum (PPM), outline the terms of the investment, including profit splits, fees, hold period, and exit strategy.