Co-development opportunities: how to identify the appropriate partner

When it comes to co-development opportunities in the real estate industry, the dollars are significant and the stakes are high. Real estate co-development relationships are a crucial way for underrepresented developers to learn, build capacity and gain practical project management skills. Additionally, they help developers build industry relationships and expand their professional networks.

“Where you really start to generate opportunities is when you get to know one another as people – break down those barriers that we have,” said Cinnaire’s Chris Laurent. “It's all about relationships.” Of course, there are many keys to a successful co-development relationship, but perhaps the biggest one– is simply choosing the right partner.

Baker Tilly recently hosted DevelUP, an affordable housing workshop and networking event aimed at developing underrepresented developers and discussing topics such as how to identify the appropriate co-development partner.

In this particular session, Baker Tilly’s Matt Paschall moderated a panel featuring Laurent, General Capital Group’s David Weiss and Scott Crawford Inc.’s Que El-Amin.

Led by Paschall, the group discussed critical aspects of co-development partnerships in Q&A form. The session highlights are featured below.

Establishing value

First, panelists discussed how to frame the importance of developing and identifying a partner based off their value-add to you, as well as why a developer should want to work with you.

El-Amin began by noting that partnering in real estate ventures is generally a good thing. It's not a knock against the developer, nor a sign of weakness for either party. In fact, partnering is what enabled him to learn the intricacies of the entire process.

“You can't Google this stuff,” he says.

In turn, El-Amin has been able to teach his development partners along the way and provide equal value throughout the process. That, he emphasized, is what makes a healthy two-way relationship.

“When you're picking your partner, they say it's like a marriage, but it's more like having a baby,” El-Amin quipped. “Because with marriage, you can get divorced, go your separate ways. But you have this baby for like 18 years (and) you’re stuck, even if you don't like each other. … So make sure you pick that person very, very wisely.”