R2 Capital is excited to announce its latest fractional ownership offering, providing everyday investors with direct investment access to commercial real estate.
This first offering allows individuals to invest in a fully occupied, high-cash flowing commercial property.
Investment highlights:
- Property overview: The offering is a fully leased 35,033 sq ft commercial building strategically located in the heart of Uptown, Saint John, NB, adjacent to the waterfront and the $300M Fundy Quay development. Tenants include a government agency, a data center, AVIS rental car, as well as reputable law, engineering, and architectural firms.
- Investment returns: We are targeting a 9-11% cash-on-cash yield, paid out in monthly distributions. The total return on investment is projected to reach 164% upon exit.
- Democratizing real estate investment: R2 Capital aims to revolutionize commercial real estate investment, a sector traditionally dominated by high-net-worth individuals and institutions. Through crowdfunding exemptions and lowering the entry barriers, we’re enabling everyday investors to directly access high-yielding commercial real estate opportunities.
Strategic partnerships for a seamless investment experience
For our initial crowdfunding launch, R2 Capital is proud to partner with Addy Invest, leveraging their robust front and back end platform to deliver a seamless investment experience for our investors. Additionally, we have engaged Equivesto Canada as our Exempt Market Dealer (EMD), ensuring that all regulatory requirements are met and that our investors receive top-tier service and support.
The future of fractional ownership in real estate
As the technology continues to evolve, we believe fractional ownership is positioned to transform the real estate market. Platforms like addy are democratizing access to real estate investments that were once exclusive to a select few. This technology and ease of investment unlocks the true value of income streams in secondary and tertiary markets, accelerating their appreciation and narrowing the valuation gap with primary markets.
Why invest in secondary and tertiary markets?
R2 Capital specializes in identifying undervalued and cash flowing properties in secondary and tertiary markets. Properties in these markets often offer higher capitalization (CAP) rates and better cash flow compared to those in major cities, providing a financial cushion during economic cycles and periods of rising interest rates. While primary markets are often “priced to perfection.” Secondary and tertiary markets present undervalued opportunities for savvy investors willing to roll up their sleeves and put in the additional work in smaller markets.
Closing the valuation gap
We believe that as direct ownership in commercial real estate via fractional ownership becomes as accessible as clicking a button on your phone, markets with strong cash flows—often found in smaller cities—will see significant valuation increases.
Investors seeking Canadian real estate exposure may prefer greater returns in a New Brunswick 10% Cap Rate property, compared to a property in Ontario with only a 5% Cap Rate. Thus driving demand, value, and liquidity in these secondary and tertiary markets.
Link to offering: r2capital.ca/75offering
Disclaimer: This is provided for informational purposes only and is not a solicitation of investment. This information may contain forward looking statements that cannot be verified or guaranteed. All investments carry risk, and investors should review all materials including the offering document before proceeding. This offering is open to Canadian residents in eligible provinces only. All investors subject to suitability and eligibility screening by Equivesto Canada Inc. This offering is made available via NI45-110 Crowdfunding via the addy Invest portal operated by Exempt Market Dealer Equivesto Canada Inc. Please review the offering page addyinvest.ca for more information about this investment and its related risks.
