An alternative vehicle for financing commercial property involves having the lender acquire an ownership (equity)interest in the property by supplying a portion of the required equity capital in addition to providing the permanent debt financing.This type of financing arrangement is commonly referred to as a(n):

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A joint venture is an agreement where two or more parties agree to contribute resources and share in the ownership, profits, and risks of a business venture. In the context of commercial property financing, a joint venture between the lender and borrower allows the lender to supply a portion of the equity capital required for purchasing or developing the property and share in the property's ownership and profits. This arrangement provides benefits for both parties by reducing the borrower's equity requirement and risk while providing the lender with an opportunity for higher returns than just charging interest on a loan. Therefore, a joint venture is the best choice for the described scenario.

An Alternative Vehicle for Financing Commercial Property Involves Having the Lender