Real Estate Funds
REAL ESTATE FUND FORMATION
The private real estate fund enables a sponsor to raise capital in a pooled fund without being constrained to do successive securities offerings on a deal-by-deal basis and without the complexity, scale, and substantial regulation of forming a REIT.
Capital Fund Law Group has formed real estate funds using a variety of structures, investment strategies, and jurisdictions. In general, real estate funds are trending toward greater specialization. Specialization may be by asset class, strategy, or both. Examples of asset class-specific firms include office, retail, medical, industrial, agricultural, storage, or hospitality.
One of the most important aspects of forming a real estate fund is setting the terms of the investment. When properly structured, real estate fund offering documents contain terms that adequately protect the fund sponsor and are attractive to investors. Real estate fund terms are driven by the fund’s strategy, the market trends within the fund’s specific asset class, and the particular needs and objectives of the fund.
Real estate securities offerings span a broad continuum of size and complexity. The most basic structure is a single-asset acquisition vehicle. This is a company formed to hold a single real estate investment property. Next is the private real estate fund (sometimes known as a real estate private equity fund, which is the subject of this white paper). A private real estate fund is a pooled investment fund structure intended for the acquisition of multiple properties in a blind pool.
EXPERIENCED LEGAL COUNSEL & FLAT-FEE SERVICES
At Capital Fund Law Group, we focus our expertise and knowledge on investment advisory services, fund formation, securities law, corporate law, and taxation. Our client-tailored flat fee will take you from start to finish, assuring no unexpected, hidden charges during the formation process.
We concentrate our expertise on your specific legal needs, which may include various factors, such as structure, strategy, and terms. Our attorneys welcome an initial consultation to discuss your investment goals. During your consultation, we will detail our real estate services and customizable post-launch legal compliance program.
In the links below, we go into more detail on the various types of real estate fund structures, strategies, and terms.
Forming A Real Estate Fund
Real Estate Fund Investment Terms
Real Estate Fund Strategies
Schedule your complimentary consultation with one of our experienced attorneys to discuss the legal structure, regulatory requirements, timeline, and costs of forming a real estate fund.
Real Estate Fund Resources
Information & Downloads
Forming A Real Estate Fund | by John S. Lore, Esq.
This white paper discusses some of the key considerations in forming a private real estate fund, including strategy, structure, and investment terms.
Real estate securities offerings span a broad continuum of size and complexity. At the largest and most complex end of the spectrum are non-traded and traded Real Estate Investment Trusts (REITs), which are pooled investment vehicles requiring a large number of investors to satisfy regulatory and tax requirements and generally requiring a substantial asset base to justify the costs of formation and operation.
The private real estate fund strikes a balance between the two ends of the spectrum, enabling a sponsor to raise capital in a pooled fund without being constrained to do successive securities offerings on a deal-by-deal basis, and without the complexity, scale and substantial regulation of forming a REIT.
Real Estate Fund Sample PPM Excerpt | an example document
The Following is a concise model excerpt of a private equity fund private placement memorandum (PPM). The PPM is based on a fictitious closed-end real estate fund investing in
The excerpt highlights many of the fund investment terms that should be considered when forming in a private equity real estate fund. The excerpt is intended to provide an idea of the type of information and level of detail that should be expected in a fund and provide a starting point for discussions with an investment fund attorney.