Passive equity. Active returns.
Partner with K5 on South Florida ground-up development. Contribute 20–25% of project cost, receive 50% of back-end profit, collateralized in second position. 12–24 month holds.
How a K5 project gets built.
Three buckets of cost. One equity partner. A fixed back-end split.
Bucket 1
Land
Site acquisition, due diligence, and closing costs. Funded from project equity at close.
Bucket 2
Soft costs
Architecture, engineering, permits, legal, financing, and reserves. Also funded from equity.
Bucket 3
Hard costs
Vertical construction — funded primarily by a construction loan, with draw schedule to match milestones.
The equity partner covers roughly 20–25% of total project cost (the Land + Soft side). In exchange: 50% of back-end profit on a typical 12–24 month hold.
Who gets paid, in what order.
| Position | Party | Contribution | Return |
|---|---|---|---|
| 1st | Bank | Construction loan (hard costs) | Principal + interest |
| 2nd | Equity Partner | 20–25% of project cost | Principal returned + 50% of profit |
| 3rd | K5 / Developer | Sponsor, build, manage | Remaining 50% of profit |
What a partner has earned on past deals.
Illustrative. Actual returns vary with market conditions, costs, and timing.
| Project type | All-in cost | Partner equity | Project profit | Partner return | Hold |
|---|---|---|---|---|---|
| Mid-Rise Development | $10.0M | $2.0M | $3.0M | $3.5M | 12–18 mo |
| Oceanfront SFR | $15.0M | $3.0M | $5.0M | $5.5M | ~12 mo |
| Boutique Condo | $2.0M | $0.4M | $1.0M | $0.9M | 18–24 mo |
How we protect partner capital.
Segregated account
Every project funds flow through a dedicated project bank account — no commingling.
Second-position security
Partner equity is collateralized by the project's real asset, junior only to the senior construction lender.
AIA draw schedule
Construction funds released against AIA G702/G703 draws tied to verified milestones.
No capital calls
Partner contribution is committed at close. Cost overruns are absorbed by the developer, not the partner.
Real, collateralized asset
The underlying land and improvements stand behind the investment for the full term of the hold.
Full reporting
Monthly project updates including draw status, budget-to-actual, and schedule variance.
Who does what.
Equity partner provides
- ✓ 20–25% of total project cost
- ✓ Patient capital for 12–24 months
- ✓ Accredited-investor qualification
- ✓ Timely execution of documents at close
K5 provides
- ✓ Deal sourcing & diligence
- ✓ Site control, entitlements, permitting
- ✓ Construction management (La Gala Construction in-house)
- ✓ Sale or lease-up & exit
- ✓ Monthly reporting & investor communications
Proven through down cycles.
Glass — a Fort Lauderdale townhome development — was delivered through the COVID cycle and sold out in three months during spring 2021. Partner capital returned in full, plus profit share.
See full track record