Hartman Capital Fund

Hartman Capital Fund

The Hartman Capital Fund is offered to provide short-term bridge-financing to Hartman-sponsored Delaware Statutory Trust 1031 exchange programs. The 1031 exchange marketplace is fast-growing, and investment volumes in 1031 products are at all-time highs, showing steady appeal to interested parties.

Hartman Capital Fund Summary

Program Size Up to $12,500,000
Investment Hartman Capital Fund; Reg D, preferred equity shares
Broker Dealer Offering Price $1,000.00/investment unit
Commission Waived Offering Price $967.50/investment unit
Minimum Investment $10,000 (qualified or non-qualified)
Holding Period up to two-year term with an optional one-year extension at the discretion of the advisor
Tax Reporting Form K-1 for holder in Hartman Capital Fund
Investment Types Credit facility for 1031 opportunities
Borrower Property Locations Texas markets and submarkets with high population density
Upfront Load 5.5% paid by the sponsor 3.25% upfront commission paid by advisor
Interest 8% paid annually, prorated daily. Commission waived class yield is 8.27%
David Wheeler Portrait

"Investment volumes in 1031 products are at an all time high, making the 1031 exchange marketplace fast-growing and creating a steady appeal to interested investors."

 

David Wheeler
Chief Investment Officer of Hartman Income REIT 

The Hartman Capital Fund Full Lifecycle

FULL LIFECYCLE PROCESS

The Hartman Capital Fund intends to generate a Preferred Return through short-term bridge-financing through Loans to affiliated investment fund borrowers to acquire and operate income-producing properties in the State of Texas. In exchange for the funds from raised proceeds, The Capital Fund will be able to provide 8% annualized returns to its investors and the return of 100% of their initial investment once the newly funded 1031 exchange offerings are fully-subscribed.

 

LIFECYCLE STAGES

1. Investment proceeds in the Capital Fund begin accruing daily interest toward investor distributions.

2. The Capital Fund makes a loan to the Holding Company.

3. A Delaware Statutory Trust (“DST”) is formed to acquire property and funded by the Holding Company.

4. In return for the funding, the Holding Company will acquire beneficial interests in the newly formed DST.

5. The DST will then acquire the Real property.

6. Hartman Capital Markets sells interest in DST offering to 1031 investors on behalf of the Holding Company.

7. The proceeds that the Holding Company receives from sales of the beneficial interests in the DST are used to pay back the loan from the Capital Fund.

8. The Capital Fund will pay distributions to its investors including the remaining preferred return and the investors’ initial investment.

Hartman Capital Fund Lifecycle Process

Investment Strategy: The Hartman Advantage

The cornerstone of our advisor’s investment strategy is its discipline in acquiring commercial properties that offer a blend of current and potential income, based on in-place occupancy plus significant potential for growth in income and value from re-tenanting, repositioning, redevelopment and operational enhancements.

ACQUISITIONS PROCESS AND CRITERIA

Hartman has extensive relationships throughout the real estate brokerage community. Our team has access to all the commercial real
estate assets for sale in our target markets.

Hartman Capital Fund Acquisition Process

 

BEST-IN-CLASS PROPERTY MANAGEMENT

Hartman’s in-house property management team is motivated to create value for investors—a process that begins during acquisition’s due diligence. We do this by ensuring that our teams are led and trained by tenured executives with an average of 10 years of property management experience.

During the acquisitions process, Hartman’s property management team conducts in-depth interviews with every tenant to understand and identify pain points and opportunities for improvement. As owner-operator, Hartman incentivizes property managers to focus on operational efficiency and tenant retention, which improves the overall performance of the portfolio and potentially reduces investment risk.

Hartman Income REIT Property Management

1031 Exchange Property Example

1031 Exchange Example

COLONY RETAIL SHOPPING CENTER

The Colony Retail is a one-story retail center located in the Dallas Fort Worth Metroplex and within five miles of four Fortune 500 companies. Built in 2016, this property spans 89,826 square feet of leasable area. Colony Retail was 100% occupied with two well-performing national tenants with long-term NNN leases at the time of acquisition.

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