RealSource Properties Launches Multifamily REIT with 10 Properties | News | Ezine Daddy

SALT LAKE CITY–(BUSINESS WIRE)–Aug. April 2022–

RealSource Properties, Inc., a leading real estate investment and management firm with a history of nearly $1 billion in commercial multifamily acquisitions, today announced the launch of its Real Estate Investment Trust (REIT). For the first time in its investment and management platform two decades ago, the Salt Lake City-based firm is now offering accredited investors the opportunity to join RealSource in a portfolio of multi-family properties.

This press release is multimedia. View the full press release here: https://www.businesswire.com/news/home/20220404005159/en/

The fairways of Royal Oaks, Cincinnati, Ohio (Photo: Business Wire)

“We believe there may not be a better time for RealSource to launch a multi-family investment vehicle given the favorable fundamentals observed in certain markets in the United States. When we apply our local econometrics and knowledge of the real estate cycle to determine which markets are as we recover quickly from the pandemic, it’s clear that demand for housing is increasing,” said Nate Hanks, CCIM, CEO of RealSource Properties, “This multifamily-focused REIT will open up our company’s track record of creating value to non-institutional investors looking for opportunities to diversify their portfolio with cash-flow real estate.”

The $390 million RealSource Properties REIT targets multifamily properties, 10 of which are already owned and more in the pipeline. Leveraging the company’s vertically integrated business model, the REIT’s assets will be managed using the same value-add real estate strategy currently deployed at RealSource’s multi-family properties nationwide. RealSource’s in-house team of economists, researchers and acquisition specialists source profitable investments; His team of asset management professionals then manages and operates the assets identified for acquisition.

Commercial real estate investments have emerged as a solution for investors looking for portfolio alternatives, and REIT-structured investments such as those offered by RealSource have historically offered investors risk reduction, potentially attractive and sustainable returns, competitive market performance, optimized investment management and more potential significant tax benefits. Additionally, investors have full transparency into the operation and performance of each asset in the REIT.

The fairways of Royal Oaks, Cincinnati, Ohio

Ten existing properties in the RealSource Properties REIT

The ten properties that RealSource Properties REIT already owns include 2,897 residential units in Ohio, Texas, North Carolina and Colorado. The acquisition process for these properties relied on an econometric model that assesses nearly 40 different market subcategories, taking into account things like market, migration, income, social indicators, government GDP and tax rates, growth and more. The evolution of this unique set of parameters over time allows for a detailed comparison across broad time periods and markets, sub-markets and regions.

Hanks stated, “In 2022, we expect continued strength in the rental product as demand exceeds supply. Certainly, the pandemic has caused dramatic demographic shifts that pose some lesser-known threats that are beginning to emerge in the industry. However, we believe there are opportunities to onboard and outsource MSAs if savvy investors bring the right business model and execute it correctly. Proper timing of the local real estate cycle can generate higher returns during periods of major upside in what is known as the absorption cycle.”

In addition to thorough market research, each asset purchased by the REIT is evaluated to align with its value creation strategy. The REIT seeks to source assets acquired at a significant discount to replacement cost — and assets determined to capitalize on operational efficiencies and improvements through asset management initiatives, property improvement plans, and a number of other contributing variables. For RealSource Properties investors, the REIT structure offers the potential for value-add enhancements to the results of its value-add strategy to improve performance over the long term relative to individual property performance.

Hanks concludes, “The axiom Everyone needs a place to live has never rang truer than during the pandemic. Well-located apartment buildings in booming US metropolitan areas can be undervalued than many deep in the real estate industry think. Rising living costs, coupled with increasing replacement costs of building new homes, have led to a huge macro increase in multifamily home values ​​in most markets in late 2021. A key market cycle has emerged: rising single-family home prices are causing more people to rent longer, affecting demand for already near-full housing inventory. As a result, apartment building vacancies in many metro areas are near all-time lows and are naturally driving rents up in many of the top 50 metro areas.”

Learn more at www.realsourceproperties.com/realsource-properties-reit

About RealSource Properties

RealSource Properties is a national, vertically integrated commercial real estate investment manager whose executive team places over 100 years of multifamily property management experience at the disposal of prospective investors. Since its inception in 2002, the Company has acquired 46 properties for a total consideration of nearly $1 billion. Headquartered in Salt Lake City, Utah, the statewide multifamily portfolio is managed by an in-house team of professionals with expertise in market economics and research, acquisitions, asset management, development and real estate administration. Visit www.RealSourceProperties.com for more information.

Accredited investors and financial professionals are encouraged to contact the Investor Services Group at info@realsourceproperties.com for a Private Placement Memorandum (PPM). The risk factors listed in the PPM should be reviewed before considering an investment.

Real Estate Investment Risk Disclosure

Real estate investments have the potential to lose value. The income stream and depreciation schedule may affect your income bracket and/or tax status. An unfavorable tax ruling can reverse the deferral of capital gains and result in immediate tax liabilities. Financed real estate investments have the potential for foreclosure. These are illiquid securities. There is no secondary market. If a property unexpectedly loses tenants or suffers significant damage, there is a potential for cash flow distributions to be suspended. The costs associated with the transaction may impact investors’ returns and outweigh the tax benefits. Tax benefits are not guaranteed and are subject to changes in the tax code.

offer disclosure

The content of this announcement: (i) constitutes neither an offer of securities nor a solicitation of an offer to purchase any securities, (ii) offers may only be made by virtue of the confidential Private Placement Memorandum (the “PPM”), which is set out at request, (iii) do not and cannot replace the PPM and are qualified in their entirety by the PPM, and (iv) may not be relied upon in making an investment decision in connection with any investment offering of the Issuer or any Affiliate, or Affiliate thereof (“Issuer”). All prospective investors must read the PPM and no one may invest without acknowledging receipt and full review of the PPM. There can be no assurance that the investment objectives of any program will be achieved. All investments involve the risk of losing some or all of the capital invested. Consult the PPM for investment terms, risk factors, minimum requirements, fees and expenses, and other relevant information related to each investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and applicable state securities laws. All offers are intended for accredited investors only, unless otherwise stated. Past performance is no guarantee of future results. All statements without guarantee. You should always consult a tax advisor before investing. The issuer does not guarantee the accuracy or completeness of the information contained herein.

Securities offered through Emerson Equity LLC Member: FINRA / SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other company mentioned in this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220404005159/en/

CONTACT: Matt Bullock

RealSource properties

RealSource Management

Vice President Marketing

matt@realsource.net

KEYWORD: UTAH UNITED STATES NORTH AMERICA

INDUSTRY KEY WORD: REIT FINANCING PROFESSIONAL SERVICES COMMERCIAL CONSTRUCTION & REAL ESTATE CONSTRUCTION & REAL ESTATE

SOURCE: RealSource Properties

Copyright Business Wire 2022.

PUB: 4/25/2022 12:00 PM / DISC: 4/25/2022 12:02 PM

http://www.businesswire.com/news/home/20220404005159/en

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