North Capital Investment Technology has launched a new investment vehicle, REITless Impact Income Strategies (REITless), focused on lending and strategic debt investments to primarily single-family and multifamily real estate development and redevelopment projects that aim to produce positive social impact in communities nationwide.
The impact initiatives targeted by the company are energy efficiency, employment generation, affordable housing and green-housing improvements that promote environmental sustainability. REITless is managed by North Capital, an SEC-registered investment adviser.
“The growing impact investment market funnels capital to address the world's most pressing challenges, and REITless has the opportunity to make differences in some of the communities that need it most around the country,” said Jim Dowd, founder of North Capital. “The need for REITless has never been greater as communities are looking to revitalize and investors are searching for new opportunities to diversify their portfolios at an unpredictable time for traditional investment markets.”
REITless intends to focus on making short-term loans and investments into the small balance real estate market, where financing requirements are typically smaller than in institutional markets. Unlike many REITs, investors in REITless will not pay upfront selling commissions as part of the purchase price, which may allow investors to compound a greater percentage of their investment. The REITless Offering Circular states, “We believe that the limited sources of debt financing for small, commercial real estate developers, resulting from continued uncertain economic conditions, has and will continue to create a favorable environment for experienced lenders to produce attractive risk-adjusted returns.”
REITless membership interests are available to both accredited investors and non-accredited investors who meet the qualifications of the offering. Each opportunity considered for investment by the REIT will be evaluated and vetted by North Capital's research committee, which comprises Dowd and a team of other investment professionals. The North Capital research committee has analyzed hundreds of commercial real estate transactions over the past five years. Through the use of the REITless Platform, investors can review investment details, execute legal documents and transfer funds. Investors also are able to track the status of their completed investments.
