Investment Strategy
Capital Equity Group, Inc. offers investors direct ownership in high quality apartment properties with a five year plan to create value and to capture the appreciation thru a sale of the real estate. Investors receive all the benefits of real estate!
We put our expertise and experience to work for our investors.
Every property capitalizes on the 25+ years experience that each principal in the management team has in real estate. Our ownership structure provides incentives to create significant value in a short time frame and to capture that value with a sale. The result is strong after tax returns for our investors.
Investment Types
Capital Equity Group, Inc. provides the opportunity for ownership in the same institutional quality real estate as owned by pension funds and insurance companies through these investment types:
Real estate investment trust
An investment pool allowing the investor to own real estate as a shareholder of a corporation. REITs also provide certain tax benefits and pay out most income to shareholders to avoid corporate level taxes.
Limited liability companies
Offers members ownership of real property, yet provides protection from liabilities in relationship to it. An LLC is typically not taxed at entity level so investors can avoid taxation at both entity and individual levels.
Delaware statutory trust
Investors own a beneficial interest in the DST (a bankruptcy remote entity) and are generally shielded from liabilities with respect to the property. A DST may also permit a beneficiary to perform a tax free exchange on its pro rata share of the property when sold.
Tenant in common
The property owner holds title to an undivided fractional interest with other "co-owners" in a larger piece of property. TIC investments allow individual owners access to larger properties in which they might not have access or capital to buy on their own.
Aquisition Strategy
Institutional Co-Investment Partnering
Benefits of partnering with institutional investors in acquiring a property:
- Institutional underwriting support and experience
- Better results in debt pricing
- Enhanced credibility with a seller
- Ability to close quickly on an acquisition
Retail Syndication
Advantages of using a private real estate investment trust (REIT) or limited liability company (LLC) to gain acquisition of real properties:
They work ideally with both
- Opportunistic Plays (value-add properties)
- Turnaround Projects (properties that have been undermanaged)
These structures best facilitate partnering with regional firms on an off market acquisition
Like Kind Exchange
Benefits of using like-kind exchange equity to acquire real estate:
- Provides opportunity to trade up in the quality of owned real estate
- Access professional management services while no longer having direct operational responsibility
- Equity facilitates exchange on a tax deferred basis into future properties