Real estate partnerships are back in vogue, says
Jeff Bruns, a partner at the law firm Mayer Brown. He points to the growing number of partnerships formed over the past 18 months, adding that they present challenges to investors and participants. "One interesting aspect when you form a partnership with a REIT is who's going to be responsible for managing that property in a way that is REIT-compliant and generates good income and you're not going to be subjected to a prohibitive transaction if you sell too quickly in a development deal," he said. That needs to be negotiated, particularly when operators and developers aren't familiar with REIT rules.

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