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Submission: On July 13 via manual from IE — Scanned from GB
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Text Content
Questions on Capital Raising? Give us a call (800) 806-7570 or email at invest@capitalengine.io * Log In * Signup site logo * BROKER DEALER * HOW IT WORKS * MARKETPLACE × CAPITAL ENGINE MESSAGE Please login first. Login × * CRE DIVERSIFIED INCOME FUND * Dallas, TX, USA * * Overview * Investment * Sponsor * Location * Gallery INVESTMENT SUMMARY THE CRE DIVERSIFIED INCOME FUND CRE Diversified Income Fund is focused on investing in single and multi-tenant net leased assets within the Technology and Industrial space. The Fund is focused on investing in single and multi-tenant net leases, given the relative stable nature of cash flows. The Fund will target assets with 10-15+ year leases that are leased to investment grade credit tenants. The Fund intends to target assets with annual rental escalations of 1.50%-3.00% in an effort to provide a hedge against inflation and rising interest rates . OPPORTUNITIES IN REAL ESTATE As real estate investors gain experience, they typically move away from single-family rentals towards more passive, less labor-intensive investments that can generate reliable streams of income. The specialized knowledge and capital requirements of commercial real estate mean that most commercial real estate investors partner with operating companies. OUR DIVERSIFICATION PUBLIC REAL ESTATE PROVIDES INSUFFICIENT DIVERSIFICATION When many people think of real estate investment, they think of public Real Estate Investment Trusts (REITs). However, REITS are traded on the same exchanges as stock and bond securities and are subject to the same risks as traditional equity and fixed-income securities. REITs do not diversify away overall market risk, a major priority for experienced, high-wealth investors. Private real estate investments, on the other hand, are weakly correlated to the public markets, and thus provide better protection against capital loss as well as market volatility. Investing across multiple private real estate asset types and sectors (such as Industrial and Technology) provides additional diversification and risk protection. Commercial real estate asset value is correlated to Net Operating Income. Unlike a single-family rental, a commercial real estate investment has an intrinsic correlation to its net operating income (NOI), which means an investor can make (or lose) money on the property regardless of what the broader market is doing. WHY COMMERCIAL REAL ESTATE? Tax Efficiency Commercial real estate investments are structured in a tax-efficient manner allowing investors to reduce taxable income through the use of depreciation. Flexibility Real estate investors can be flexible in their investment strategy and timing, pursuing profitable deals where they’re available. WHY CRE INCOME FUND? Key Benefits * A veteran team of commercial real estate professionals who understand changing market conditions and critical investment factors * Deep experience identifying, selecting, acquiring and operating high-return investment properties * Rigorous fundamentals research and analytics on technology and industrial real estate assets to find, enhance, and realize long-term portfolio benefits * A focus on the private real estate sector for diversification and inflation hedging, mirroring how the wealthiest 1% invest * A disciplined investment process framed by industry and population change seen through the lens of fair market value * Predictable monthly income, stable returns, and mitigated default risk by leasing only to investment-grade tenants, with a defensive investment posture across a range of market conditions HOW WE WORK? Tax Efficiency Because we are also invested in the properties, our incentives are aligned with yours. Our income and profit structure requires us to meet certain returns before our profit participation kicks in, ensuring our continual focus on profitability. Clear Exit Plans We enter an investment with the exit in mind giving investors a roadmap to a successful outcome. Transparency Fees and the profit participation structure are clear from the outset and closely correlated to the performance. COMPANY INFO THE CRE DIVERSIFIED INCOME FUND We are a private real estate fund for investors seeking to invest in highly attractive niche sectors of the commercial real estate industry. The Fund is optimized for long-term capital appreciation and a 10% annual yield. OPPORTUNITIES IN THE COMMERCIAL REAL ESTATE SECTOR As real estate investors gain experience, they typically move away from single-family rentals towards more passive, less labor-intensive investments that can generate reliable streams of income. The specialized knowledge and capital requirements of commercial real estate mean that most commercial real estate investors partner with operating companies. “Commercial Real Estate historically has delivered competitive total returns based on high, steady dividend income and long-term capital appreciation. Its comparatively low correlation with other assetsmakes it an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns. LEADERSHIP ROGER SCOTT, CHIEF FINANCIAL OFFICER Mr. Scott has 20+ years of corporate finance and accounting experience. He has served as Chief Financial Officer for a $120M SEC reporting company where he directed all financial and information technology activities. He also served as director of treasury and tax for a $220M SEC reporting company where he was responsible for all forecasting and analysis of cash positions and other capital accounts. He formerly worked for Federal Express, a Fortune 100 global provider of transportation, logistics and e-commerce, where he was a senior financial analyst. Mr. Scott has experience with managed sale and leaseback transactions, including mortgage debt related instruments, Industrial Revenue Bonds, and stand-by letters of credit tied to interest rate swaps. He is a Certified Public Accountant with SEC reporting experience, and experience serving multi-national companies, ensuring their compliance with US GAAP and IFRS. Mr. Scott has taught graduate-level finance as a part-time faculty member. He holds an M.B.A. from Lehigh University and a B.S. (Economics & Finance) from the University of South Carolina. GRANT BAKER, CHIEF ACCOUNTING OFFICER Mr. Baker graduated magna cum laude from Ohio State University with a master’s degree in accounting. He began his career at KPMG as an audit associate and quickly moved up to senior audit associate, where he primarily worked on the audit of a Fortune 100 company. While at KPMG, Mr. Baker supervised 1-2 audit associates at any given time, performed audits of financial statements in accordance with GAAP and PCAOB standards, and performed walkthroughs and conducted internal control test work to ensure compliance with the COSO framework. Mr. Baker completed all phases of standard audit engagements including planning, budgeting, and fieldwork, while working directly with managers to determine audit approach, scope, and testing procedures. After leaving the public accounting sector, Mr. Baker worked in leadership roles at both public and private companies within their accounting and finance divisions. Mr. Baker recently worked at Worthington Industries, a publicly traded company with more than $50M in annual revenue. At Worthington, he performed monthly reviews of operation metrics with facility and division leadership teams. He also implemented a cycle counting program at the Greeneville facility and assisted in developing a commercial strategy for the division. He holds bachelor’s and master’s degrees in accounting and is a Certified Public Accountant. INVESTMENT HIGHLIGHTS FUND STRATEGY The Fund seeks to provide investors access to the Commercial Real Estate sector through a diversified portfolio of assets that primarily consist of high-quality properties. The Fund focuses on properties with the potential to deliver high-quality total returns based on a combination of current income and capital appreciation. This includes assets that the investment manager believes can: * generate consistent income growth with long-term stable leases and * possess substantial capital appreciation through longterm gains and low portfolio turnover. OUR FUND CURRENTLY FOCUSES ON THE TECHNOLOGY AND INDUSTRIAL SECTORS, WITH PROPERTIES THAT EXHIBIT THE FOLLOWING ATTRIBUTES: * Properties benefiting from local industry trends or national trends related to e-commerce, logistics, or manufacturing * Properties that are under-occupied with strong locations * Properties that provide an opportunity to create value through additional leasing * Properties occupied at below markets rents, with rents that can be raised * Properties that are undervalued selling at attractive pricing (typically indicated by cap rates) * Properties that can generate higher yield opportunities through tenant diversification PARTNERS AND INVESTMENTS YOU’LL APPRECIATE ZERO CORRELATION TO BROADER FINANCIAL MARKETS We believe that the diversification of real estate assets in the portfolio eliminates the correlation of performance to traditional asset classes such as equities and fixed income. NO CAPITAL CALLS Owners of shares do not bear any operating costs or other expenses associated with the operations of the properties. LONG LIFE Investments focus on long-term leases that offer long-term opportunities through expense control, property improvements, increased occupancy, and revenue growth. NO ENVIRONMENTAL RISK Shareholders are mitigated from environmental risks. The property operators assume all environmental liabilities. TAX-ADVANTAGED INCOME The Fund’s structure is designed to provide immediate, tax-advantaged income through depreciation. LONG-TERM CAPITAL APPRECIATION The Fund continuously seeks to achieve newly appraised fair market value. LIQUIDITY Windows are available for investors to redeem shares on an annual basis. PROPERTY VALUATION CRITERIA * Stable Rent Rates * Highly Competent Property Managers * Established Leasehold Characteristics * Credit-worthy Tenants * 3-5 Year Asset Hold Periods HISTORICAL GROWTH OF THE INDUSTRIAL SECTOR FINANCIAL SNAPSHOT * Investment Type: Real Estate * Offering Type: Equity * Funding Goal: $20,000,000 * Minimum Investment Amount: $10,000 * Management Fee: 1% * Liquidity: Semi Annual * Shared Interest: 30% * NAV Calculation: Annually * Tax Benefits: Long Term Capital Gains & Depreciation JavaScript chart by amCharts 3.21.13 JavaScript chart by amCharts 3.21.13 CAPITAL STACK Investor Equity $20,000,000 100.00% Sponsor Equity $0 0.00% Senior Debt $0 0.00% TOTAL $20,000,000 100% * FINANCIAL HIGHLIGHTS * * Preserve investor capital * Make regular cash distributions * Realize capital appreciation * Provide liquidity through repurchase agreements BUILDING IMAGES × Hang in there... BUILDING IMAGES DOCUMENTS Project Title Document Title Action CRE Diversified Income Fund December 2021 Update View CRE Diversified Income Fund Subscription Documents View INVESTMENT LOCATION INSTRUCTIONS PERKS FREQUENTLY ASKED QUESTIONS (FAQ) DISCUSSION I'm affiliated with CRE Diversified... Please sign in to post a comment. Your affiliation with CRE Diversified... Select None Employee Investor Promoter Affiliate TERMS Prev Next Invest Now Indicate Interest Investment Summary * Deal Type: Equity * Sponsor: Commercial Real Estate Advisors * Investment Type: Technology and Industrial * Funding Goal: $20,000,000 * Dividend Yield: 10% * Hold Period: 6 Months * Min. Investment: $10,000 * IRA Eligible: Yes * Investor Relations: info@creincomefund.com * Address: 100 Crescent Ct., Dallas, TX 75201 * Telephone: 1-866-427-3386 * CRE Diversified Income Fund, LLC Contact Investor Relations By sending, you agree to Capital Engine Terms and Conditions SEND REQUEST × about 0 sec ago 0 Like Reply View All Discussion Comment I'm affiliated with CRE Diversified... I'm affiliated with CRE Diversified... 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