A partial buyout is a real-world structure that solves a specific problem: one owner wants out, the other wants to stay, and the parties want to avoid a full liquidation that would be tax-inefficient or strategically wrong.
TL;DR & ask a question
What it actually is
A partial buyout is a transaction where one party acquires a portion of another party's interest in a property or operating entity, while the seller retains the balance.
The structure can take many forms — direct equity purchase, redemption by the entity, or a hybrid — depending on tax planning and lender consent.
When it fits
A partner needs liquidity for an unrelated reason.
An estate situation needs to be settled without forcing a full sale.
One co-owner has decided to step back while the other wants to continue operating or developing.
A property has clear upside left to capture and a clean liquidation would leave value on the table.
Documentation and lender consent
Operating agreements typically need to be amended. Lender consent is often the gating item — most loan documents restrict change of control or require approval of new partners.
Tax considerations
Partial buyouts have meaningful tax consequences for both sides. The choice of asset versus entity-level transaction is often driven by tax efficiency. Talk to your CPA early.
Where RAW Developments fits
We participate in partial buyouts where the remaining asset has development, redevelopment, or repositioning upside that fits our profile.
Disclaimer. This article is for general informational purposes only and does not constitute legal, tax, investment, construction, engineering, lending, or securities advice. Every property and project is different; consult your own qualified professionals before acting.