The founder of Northstar Commercial Partners, Mr. R. Brian Watson, functions as the managing partner in a limited liability company that is formed for the purpose of acquiring and operating each specific investment. This arrangement provides capital investors with a flexible, stand-alone investment entity for every Northstar project. A limited liability company operating agreement incorporates clear operating procedures, a binding fiduciary relationship between the parties, and through its structure, provides standard protection from exposure to full personal liability for investors.

Though each investment varies in terms of the structure of the limited liability company, depending upon the purpose of that specific transaction, all capital partners have the opportunity to earn a preferential return on their investment capital, and a return of their capital from the positive cash flows generated by the real estate asset. After capital partners have received these returns, Northstar Commercial Partners' principals then share in a portion of the remaining net profits of the investment through designated sharing ratios with the capital partners. Projected net profits are stated in the investment analysis and may be realized upon refinancing, cashflows received, and/or the disposition of the asset.
Northstar does not receive any incentive compensation until its investors have received a preferred return on their total capital contribution and the return of their original investment. This differentiates the company from other fee-driven or money management-oriented firms. In addition, the founder of Northstar personally invests his own capital in each of Northstar’s investments. Such personal commitment through the investment process aligns the interests of the company with the long-term wealth creating objectives of its capital partners.
Each investment pro forma analysis provides pessimistic, realistic, and optimistic case scenarios for a potential investor to review. As with any investment opportunity, no specific returns can be guaranteed. It is recommended by Northstar Commercial Partners that any party to a transaction consult with competent legal and tax advisors.
