Our Pref model ensures that our investors receive a fixed annual return before 507 Capital receives any compensation. If we do not achieve the property-specific goals, we may not receive any compensation until those goals are met. Additionally, if we are unable to hit the Pref amount for investors in a given year, the unpaid amount will roll over and accrue onto the following year. The preferred return is different for each investment, but for most properties, it will range between 6% and 8%.

We use capital for costs including the down payment on the acquisition, building improvements, tenant improvement allowances, acquisition fees, and closing costs. More specifically, investments made by our equity partners will be used toward the down payment of the properties, with the remainder being financed through a local lending institution. We assume all the risks associated with the debt, ensuring that our equity partners’ investment is protected. The investment may also be used to cover acquisition fees and property rehab costs, or for maintaining a reserve balance for the property.

We structure each deal so that the investor has actual equity ownership in the physical real estate asset(s).

The Midwest: Secondary and tertiary markets with high job and population growth. We look for markets with demand drivers (e.g., universities and hospital systems) and retail corridors surrounded by population density and with longstanding anchors.

Each investment opportunity is different; contact us for more information.

Visit the InvestNext portal for more information on your investments and documentation.

Investing in retail shopping centers through 507 Capital brings diversification to your portfolio. It also comes with real estate tax benefits: It’s an inflation hedge and a tangible asset (a stock could go to zero, but property will never disappear), and we put debt on our properties, which helps leverage your capital to maximize returns.

The benefits to working with us are detailed here and include our proven investment approach, our promise to ensure trust and transparency, and our commitment to the communities where we do business.

Reasons include: Retail typically sees longer lease lengths, business tenants care more about their space when compared with residential tenants, and NNN leases account for inflation on any overhead costs (CAM).