The Kyma Model

From idle land
to durable income
six deliberate steps.

The Kyma joint venture model is designed from the landowner's perspective. You contribute your land. We contribute the capital, expertise, and construction guarantees. Together, we build something worth more than the sum of its parts — and you choose your outcome at the finish line.

$0

Capital required from the landowner

Your land is your contribution. Kyma and its development partners provide all cash equity and carry every construction loan guarantee.

100%

Construction guarantees carried by the developer

The developer signs the completion guarantee. The landowner is not on the hook for construction debt — at any stage of the project.

Your call

Hold for income or exit for cash — at stabilization

When the project reaches stabilization, you elect your outcome. Both paths deliver fair market value for your contributed equity.

Six steps from first conversation
to first distribution.

Every Kyma engagement follows the same disciplined sequence — from the initial land assessment through construction, lease-up, stabilization, and your final election. Here is what each phase involves and what your role is at every step.

01

Land Assessment & Highest-and-Best-Use Analysis

Kyma evaluates your parcel — zoning, infrastructure, market demand, comparable sales — and identifies the development use that produces the greatest land value. This analysis is complimentary and carries no obligation.

Your Role

Provide site information. Meet with a Kyma principal. Review findings. No commitment required at this stage.

02

Independent Appraisal & Land Valuation

An independent MAI-designated appraiser establishes the fair market value of your land contribution. This number — not a figure set by Kyma — becomes your equity credit in the joint venture. It is treated exactly as if you had written a check for that amount.

Your Role

Cooperate with the appraiser. Review and accept the valuation. This establishes your ownership percentage in all downstream economics.

03

Joint Venture Structuring & Entitlement

The joint venture agreement is executed, defining your ownership percentage, waterfall mechanics, fee participation, and protections. Simultaneously, Kyma and its civil engineering partner pursue entitlement — rezoning, permitting, and regulatory approvals — that dramatically increase the land's value before construction begins.

Your Role

Execute the joint venture agreement. Be available for community or political outreach if helpful. No capital required.

04

Construction Loan Closing & Development

The developer closes the construction loan — signing all completion guarantees personally. Title transfers to the project entity. Construction begins. The landowner receives monthly progress reports but bears no construction risk and signs no loan documents as a guarantor.

Your Role

Execute title transfer documents. Receive monthly construction updates. You are not a guarantor on the construction loan.

05

Lease-Up & Stabilization

Following construction completion, the property is leased to stabilization — typically defined as 90–95% occupancy maintained for 60–90 consecutive days at market rents. During this phase, the landowner participates in developer fee income as specified in the joint venture agreement.

Your Role

Receive monthly occupancy and leasing reports. Begin receiving your share of developer fee income per the joint venture agreement.

06

Your Election: Hold for Income or Exit for Cash

At stabilization, you have 60–90 days to elect your path. Hold for permanent equity and quarterly distributions — or receive a cash buyout at fair market value. Both paths produce the same waterfall outcome. Only the form and timing differ.

Your Role

Elect Path A (permanent equity) or Path B (cash buyout). This is your decision, made on your timeline, with full information.

Who does what.
Who bears what risk.

One of the most important things to understand about the Kyma model is what the landowner is — and is not — responsible for. This table makes that clear.

Responsibility
Landowner
Kyma & Developer
Contributing the land at appraised market value
Providing cash equity for construction
Signing construction loan guarantees
Managing entitlement & permitting
Overseeing construction & contractor
Managing lease-up & tenant selection
Receiving a share of developer fee income
Participating in the profit waterfall
Electing hold or exit at stabilization

Two paths at the finish line.
Both in your favor.

When the project stabilizes, you make one decision: hold your interest as permanent equity, or be bought out at fair market value. The white paper covers both paths in full detail, including waterfall mechanics and tax considerations.

A
Long-Term Wealth

Crystallize Into Permanent Equity

Your profit-share percentage converts to a defined ownership stake in the stabilized, professionally managed asset. Quarterly distributions. Long-term appreciation. A cash-flowing property your heirs can inherit.

  • Quarterly cash distributions from net operating income
  • Full participation in future appreciation
  • Estate planning and generational transfer
  • Depreciation benefits during the hold period
  • 1031 exchange eligible at future sale
B
Liquidity Event

Cash Out at Stabilization

Your interest is redeemed at fair market value — funded from permanent loan proceeds, an institutional sale, or a secondary equity raise. A lump-sum payment representing the full waterfall value of your land contribution and profit participation.

  • Lump-sum buyout at peak asset value
  • No ongoing involvement required after closing
  • Proceeds available for estate or reinvestment
  • Eligible to redeploy into a new Kyma project
  • Installment sale structuring available in some cases

The questions we hear
most often.

Straightforward answers to the things landowners ask us in nearly every first conversation. For a deeper treatment of any of these topics, the white paper covers each one in full.

Do I have to put up any money?

No. Your contribution is your land, valued at independently appraised market value. Kyma and its development partners provide all cash equity and carry all construction loan guarantees. You are not required to invest capital at any stage.

What happens to ownership of my land?

Title transfers to the project LLC upon construction loan closing — required for the developer to secure financing. In exchange, you receive a membership interest in that entity carrying all the economic rights defined in your joint venture agreement.

How is my land's value determined?

By an independent MAI-designated appraiser — not by Kyma. The appraised value becomes your equity credit in the joint venture, treated exactly as if you had contributed that amount in cash. You review and accept the appraisal before any agreement is finalized.

What if the project runs into trouble?

The developer carries a completion guarantee on the construction loan, ensuring the project reaches substantial completion regardless of cost overruns. The landowner is not a guarantor. Construction risk belongs to the developer — not you.

When do I start seeing income?

You begin participating in developer fee income during construction and lease-up per the joint venture agreement. If you elect Path A at stabilization, quarterly distributions from net operating income begin shortly after permanent financing is placed.

Can this work for land held in a trust or estate?

Yes. Kyma regularly works with land held in family trusts, irrevocable trusts, and estates with multiple beneficiaries. The joint venture structure can be adapted to accommodate complex ownership situations, and the resulting interest is generally more estate-friendly than idle raw land.

How long does the whole process take?

From first conversation to first quarterly distribution typically spans 48 to 57 months, depending on asset class, entitlement complexity, and project scale. The white paper includes a detailed phase-by-phase timeline with milestones and landowner responsibilities at each step.

What if I want to sell my interest later?

The joint venture agreement specifies transfer restrictions and rights of first refusal. Landowners electing Path A can generally sell their crystallized equity interest subject to those provisions — and a future sale may be eligible for a 1031 exchange into replacement property.

Read the full model
before our first conversation.

The Landowner's Blueprint covers every phase of the Kyma process in plain language — highest-and-best-use analysis, joint venture structuring, waterfall mechanics, tax considerations, and real project timelines. Download it, read it at your own pace, and come to any conversation fully informed.

Free Download — White Paper

The Landowner's Blueprint

How to Turn Idle Land Into Durable Net Cash Flows

On its way. Check your inbox — and feel free to reach out with any questions after you've read it.

"The white paper covers every phase in detail — waterfall mechanics, tax considerations, real project timelines, and how to evaluate hold versus exit for maximum after-tax wealth. It is written for landowners who want to understand the model fully before having a conversation."
— From The Landowner's Blueprint, Kyma Partners

Ready to see what
your land could become?

The best starting point is a complimentary land assessment — a no-cost, no-obligation review of your parcel's highest and best use potential. If there is a fit, we will tell you clearly and prepare a preliminary term sheet outlining proposed contribution value, equity structure, and waterfall economics.

1

Request a Complimentary Land Assessment

Kyma reviews your parcel and provides a preliminary highest-and-best-use analysis at no cost or obligation.

2

Schedule a One-on-One Consultation

Meet with a Kyma principal to discuss your land, your family's goals, and whether the model is the right fit.

3

Receive a Non-Binding Term Sheet

If your land qualifies, we prepare a Letter of Intent outlining the proposed contribution value, equity structure, and waterfall economics.

4

Download the White Paper

The Landowner's Blueprint covers every phase of the process in detail — including waterfall mechanics, tax considerations, and real project timelines.