Securities lend themselves easily to diversification. However, hard assets provide more challenges when it comes to diversification. Real estate investments require a lot more capital–particularly commercial real estate assets. That is, however, unless you consider real estate diversification through fractional ownership.
Commercial real estate is widely esteemed as the best investment class to have in your real estate portfolio with unsurpassed benefits in terms of safety and potential, but these buildings typically come with a hefty price tag. This high price often acts as a barrier of entry for many investors preventing most Americans from holding real estate in their investment portfolio. Those that do recognize the value of real estate in their portfolio are often restricted to assets such as single-family residential real estate, vacant ground, or perhaps a duplex.
This is where the beauty of diversification through fractional ownership begins–a specialty of Millcreek Commercial.
Millcreek Commercial specializes in breaking down the barriers to owning commercial real estate. Millcreek Commercial allows investors to own a percentage interest in a specific commercial real estate asset leased by a quality tenant. This enables investors to own premium commercial real estate for as little as $100,000.
Millcreek Commercial’s fractional ownership creates accessibility for property diversity in investors’ portfolios. As an example, an investor with $500,000, rather than owning 10% of a $5 million building, can purchase smaller shares in 3-5 assets diversifying across geographic regions, building types, and industry sectors. With this unique model, investors could invest $150k into a property leased by CVS Pharmacy on the east coast, $150k into a publicly-traded urgent care center in the Midwest, $100k into a property leased by Dollar General in the south, and the remaining $100,000 into a property leased by a surgery center in the west.
Fractional ownership delivers the safety, security, and stability of commercial real estate investment and the tax advantages of owning the hard assets. By utilizing fractional ownership, investors diversify risk by owning portions of buildings in different locations and across various industries.
If you would like to discuss adding quality commercial real estate to your investment portfolio, click the link below.