CAPFUNDR REIT Value Fund I has met its Minimum Offering threshold and has begun to put investor capital to work. The Fund’s first investments were in shares of two non-traded REITs that it purchased in the secondary market at prices that were 64% and 69%, respectively, of each REIT’s reported Net Asset Value (NAV). Both investments were made for less than 30% of the REITs’ initial offering prices.
The investments reflect the fund’s bargain hunting strategy of buying REIT shares at prices below the net value of the REIT’s assets. “The secondary market for non-traded REITs is very inefficient” said Mitch Wasterlain, co-CEO and Chief Investment Officer of CAPFUNDR. “There are very few buyers of these shares because the REITs’ portfolios can be difficult to evaluate and these companies are not followed by analysts” he added. “Our experience with REITs gives us a critical advantage in understanding the structure of these companies and the value of their assets. “
CAPFUNDR REIT Value Fund I acquires shares in Non-Traded REITs and other real estate companies including traded REITs at prices below their NAV. A non-traded REIT has filed with the SEC but is not traded on an exchange. They are typically sold to individual investors by broker dealers with front-end fee loads of 15%. While we do not recommend investing in non-traded REITs at the initial offering due to their high fee loads, we believe that they represent a very attractive value at their heavily discounted secondary market prices. The Fund pursues a Growth & Income strategy which provides an attractive current yield and capital appreciation. The Fund is currently open to new investors.
Full details of the offering can be found at: https://www.capfundr.com/offering/capfundrreitvaluefundi