1031 Crowdfunding, a real estate investing platform, has announced the closing of its 1031 CF Bridge Fund and the launch of 1031 CF Bridge Fund II.
1031 CF Bridge Fund II provides short-term financing for real estate programs controlled by the fund’s manager. It is anticipated that a significant portion of such funding will be made to programs organized as Delaware Statutory Trusts (DSTs) in order to offer prospective investors in such DSTs the opportunity to engage in a “like-kind exchange” under Section 1031 of the Code. 1031 exchange and cash investors incrementally purchase shares of the DST, returning principal to the Bridge Fund, allowing for future short-term financing. In the meantime, the Bridge Fund earns interest from the DST for providing the financing. However, the fund is not limited solely to DST-related investments and may make other investments in affiliates of the manager, including into pooled investment vehicles organized as real estate funds or REIT