Joint Ventures
Landstar has participated in many value-added joint venture (JV) partnerships, thus creating a vested interest that aligns the performance expectations of all parties. In the past, value-added partners have provided client relationships, specialized development knowledge, land and/or capital in exchange for Landstar's development expertise and project equity.
A JV is an entity formed between two or more parties with the purpose of undertaking economic activity together. The JV parties agree to create a new entity by both contributing equity (client relationships, specialized development knowledge, land and/or capital), and then share in the revenues and expenses of the JV entity.
Typically, Landstar's JV's are established with a bare trustee which holds the development project allowing separate companies (JV partners) to own respective interests in the development's capital cost allowance, revenues or expenses. Non-recourse mortgages are also typical in order to limit liability to all interested JV partners.