Broadstone Real Estate Files for $1 Billion Interval Fund Offering
October 27, 2017 | James Sprow | Blue Vault
Broadstone Real Estate registered a new interval fund on October 13, with a goal of a $1 billion capital raise. According to the draft registration statement, Broadstone Real Estate Access Fund intends to invest in a portfolio of institutional quality real estate and real estate-related investments.
The fund will be operated as an interval fund making quarterly repurchases at the shares’ daily net asset value, but intends to be taxed as a real estate investment trust.
The fund intends to invest at least 80% of the fund’s net assets (plus the amount of leverage for investment purposes) in a portfolio of institutional quality real estate and real estate-related investments, which will be comprised of the following primary asset classes: (i) Direct Real Estate Investments, (ii) Private CRE Investment Funds, (iii) Publicly Traded CRE Securities, and (iv) CRE Debt Investments.
The company plans to offer two share classes of common stock: Class W and Class I shares. Class W shares have a $2,500 minimum purchase, while Class I shares have a minimum of $1 million.
There is no upfront sales load associated with either share class. Class W shares will pay to the Distributor a shareholder servicing fee (the “Shareholder Servicing Fee”) that will accrue at an annual rate of up to 0.25% of the Fund’s average daily net assets attributable to Class W shares and is payable on a monthly basis. Class I shares are not subject to a Shareholder Servicing Fee.
Broadstone Asset Management LLC will serve as the fund’s adviser, while the sub-advisor was not yet disclosed in the filing.
Broadstone Asset Management provides investment advisory, administrative, and related services to two clients, Broadstone Net Lease Inc. and Broadtree Residential Inc., both private REITs.
