Tokenized Real Estate Funds Provide Investors With Simple Access To Commercial Real Estate Assets

While stocks may become more volatile during high inflationary periods, real estate tends to benefit. Commercial real estate investment funds help build a diversified portfolio by allowing investments in multiple properties. 

RedSwan CRE offers two tokenized commercial real estate funds to allow investors a quick and easy way to gain exposure to a diversified portfolio of quality, off-market CRE properties while enjoying the conveniences associated with digital assets. The two funds are RedSwan CRE Core Fund (“RSCP”) and the RedSwan CRE Value-Add Fund (“RSVA”), which will pursue core and value-add investing strategies, respectively. Until now, the RedSwan CRE Marketplace has featured direct tokenized property investment opportunities. With professionally-managed funds by RedSwan CRE, individual investors will no longer have to guess which individual projects will meet their risk and yield requirements. Allow our professional investment advisors to provide guidance in selecting the appropriate investment projects to invest in. 

Why Invest in a RedSwan CRE Real Estate Fund? 

Automatic diversification. A fund provides exposure to many properties simultaneously, reducing risk through diversification, dollar cost averaging and portfolio modeling. 

Professional Management. Fund proceeds are allocated to digital CRE properties by senior RedSwan CRE real estate professionals that have intimate knowledge of the opportunities and risks of different geographic markets and property types. Extensive property and sponsor due diligence on prospective investments are performed prior to inclusion in our funds. 

Proprietary Deal Flow. Principles of RedSwan CRE leverage years of CRE experience and a deep industry network. This leads to an attractive, proprietary deal flow for the fund. 

Opportunistic Approach. Fund managers don’t have to be 100% invested in CRE at all times, so capital can be deployed opportunistically, which is advantageous during challenging market conditions. 

Low Minimum Investment. Minimum entry into the fund is just $1,000. 

Low Cost. At a flat 1.5% annual management fee, this is one of the lowest fee rates in the private real estate fund industry. 

Liquidity and Early Exit. As a tokenized real estate fund, the possibility of 24/7 liquidity and early exit exists subject to initial holding period requirement).1 

RSCP and RSVA tokens are available for purchase. As with the single property investments currently available on the Marketplace, the funds have a $1,000 minimum investment requirement. Investment is open to US investors who are considered Accredited under Regulation D and International investors under Regulation S, 506c. Our combined Funds are capitalized by raising $800 million through a token sale for both funds, raising a total of $1.6 billion in capital for investment. 

For U.S. Regulation D investors, the tokens will have a one (1) year holding period requirement from date of issuance; for International Regulation S investors, the tokens will have a two (2) month holding period requirement. The fund will be well-diversified across geographies and sponsors. Our funds focus on the off-market recapitalization of equity investments which provide positive cash on cash income and risk-adjusted returns.

Investment properties include multifamily, office, industrial, hospitality and retail equity requirement projects. 

Value-add projects usually involve sponsor property upgrades and or modifying the use case to increase top-line revenues. Improvements can include renovations in conjunction with operational efficiency, which increases occupancy and lease rates. Value-add properties often transform the property from a lower to a higher class. 

The assets in the fund will comprise both properties that are actively marketed in the RedSwan CRE Marketplace as well as off-Marketplace tokenized assets that will be exclusive to the fund. 

We are excited to offer one of the industry’s first tokenized, digital CRE funds. We are aware that some investors prefer to not shoulder the burden of deciding which of the many investments we offer in our Marketplace to pursue. By offering a product professionally managed by the Registered Investment Advisory team, we can serve these investors and help them achieve attractive yields and returns on high-quality commercial real estate. 

Learn more about RedSwan CRE’s Investment Funds here.

Disclaimers: 

There is currently not an active secondary market for digital assets of the type featured on the RedSwan CRE Marketplace. The investor’s ability to liquidate will be dependent on market conditions and there is no guarantee that a buyer will be available that can offer a price deemed acceptable by the seller.

Investments involve risk, including principal loss, and, unless otherwise stated, are not guaranteed. Targeted returns are subject to change and are based on modeling performed by the sponsor. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

Image: Courtesy of RedSwan CRE