Although the illiquidity of a real estate fund asset class – and the associated issues that it can present – is familiar territory for PE sponsors, other elements of investing in real estate can introduce new issues that warrant special consideration. To address some of the tax and structural problems presented by this asset class, Strafford CLE Webinars hosted a recent webinar featuring Heather L. Preston, partner at Kilpatrick Townsend & Stockton, and Matthew Posthuma, partner at Ropes & Gray. In addition to detailing features of private real estate investment trusts and issues when using them for real estate funds, this second article in a three-part series explores other vehicles and structures sponsors can adopt. The first article prescribed different fund structures based on the types of investors involved, while also setting forth the typical range of investment strategies for real estate funds. The third article will explain how the recent Tax Cuts and Jobs Act of 2017 has introduced new tax issues for real estate fund sponsors to navigate. For more on fund structures, see our two-part series on structuring PE club deals: “Overview of the Process, Possible Structures and Their Recent Evolution” (May 7, 2019); and “Key Deal Documents and Eight Essential Practice Tips to Navigate Deals” (May 14, 2019).