Investing with 507 Capital presents a unique opportunity to participate in commercial real estate investments that offer passive income and attractive returns. Our company specializes in acquiring value-add retail shopping centers throughout the Midwest that have the potential to increase their net operating income and provide above-average returns to our equity partners.
We take pride in creating a hassle-free investment experience for our partners. Once you make your initial investment, you will receive regular updates on your investment through our online investor portal and quarterly and annual distributions. Our investment strategy is focused on generating annual distributions between 6% to 10% of your investment, with an aim to realize annualized returns of 16% to 20% upon sale or refinancing of the property after a 3-5 year period. It is important to note that each property will present a unique investment opportunity with different return potentials.
Our preferred return (Pref) model ensures that our investors receive a fixed annual return before 507 Capital receives any compensation. If we do not achieve the property-specific goals, we may not receive any compensation until those goals are met. Additionally, if we are unable to hit the Pref amount for investors in a given year, the unpaid amount will roll over and accrue onto the following year. The preferred return for most properties will range between 6% to 8%.
The investments made by our equity partners will be used towards the down payment of the properties, with the remainder being financed through a local lending institution. We assume all the risks associated with the debt, ensuring that our equity partners' investment is protected. Furthermore, the investment may be used to cover acquisition fees, property rehab costs, or for maintaining a reserve balance for the property.
Investments with 507 Capital offer a unique opportunity to gain exposure to commercial real estate investments and earn attractive returns with minimal effort. We take pride in creating a positive investment experience for our partners and offering opportunities that are tailored to their investment goals.