Formation and Operation of Real Estate Investment Funds and REITs
The Dilendorf Law Firm represents US sponsors of real estate investment funds, as well as investors from abroad. Our services include fund formation, corporate and tax planning, guidance after the launch, and support for ongoing fund operations.
Real estate investment fund managers, whether first-time sponsors or established industry leaders, trust the Dilendorf Law Firm to configure the best terms and structure for the creation and deployment of capital.
Our cross-disciplinary team consists of real estate attorneys, securities lawyers, and tax specialists who focus on all aspects of real estate fund structuring and lending. These include partnerships, joint ventures, mezzanine lending, real estate equity funds, preferred equity, qualified opportunity zone funds, and REITs.
The real estate experts at the Dilendorf Law Firm have an established reputation for expertly structuring every type of real estate fund to the client’s benefit. Our firm has considerable experience with the formation of real estate funds and vehicles, covering open-ended, closed-ended, variable-priced, and total return driven structures, programmatic joint ventures, and separate accounts.
Our real estate team is familiar with all types of debt funds, equity funds, and global investment strategies, working across all asset classes, including retail, residential, commercial, office, multifamily, hospitality, agricultural, medical, senior living, and undeveloped land.
We partner with clients to help them understand the unique market terms surrounding alternative capitalization strategies and the various opportunistic investment objectives within the real estate market.
Tokenization of Real Estate Funds
Dilendorf Law Firm advises on all aspects of the formation, governance, and operation of tokenized real estate funds. Tokenized real estate funds offer a number of potential benefits as compared to traditional funds.
Benefits include:
- Access to a global pool of capital;
- Increased liquidity;
- Simplified digital management of a significant number of investors via smart contracts;
- Automated and transparent governance, voting and compliance using smart contracts on the blockchain;
- Prompt cryptocurrency operations as an alternative to banking transactions in fiat.
Our fund tokenization services include:
- Developing a fund’s strategy and structure;
- Possible integration of the token issuer into the current structures or creation of a separate tokenized structure for the existing manager;
- Advising on jurisdiction and cross-jurisdictional issues;
- Implementing the chosen trust structure and preparing all the necessary documentation;
- Preparing private offering memorandum and subscription documents;
- Advising on foreign and US investor qualifications;
- Advising on AML/KYC compliance.
Fund token issuers must structure each offering very carefully to take into account various pitfalls presented by securities regulations, AML/KYC requirements and current investment and governance restrictions. Heightened global liquidity may present additional operational complications, for example, with secondary market re-sales and maintaining capitalization tables.
Some of the other major considerations that should be acknowledged and addressed by emerging tokenized fund managers are that security tokens may by subject to limitations on resale, number of investors, investor solicitation and acceptance, tradebility on secondary markets in the US and foreign jurisdictions, etc.
We help our clients efficiently navigate the web of challenges arising throughout the formation, governance, and operation of tokenized funds.
A Competitive Advantage for Global Clients
As global markets continue to expand and contract due to the rapid pace of technology, we partner with clients to explore and embrace the potential of innovative investment funds, guiding them to make a profound and lasting impact. We advise international clients on effective real estate holding structures and the tax consequences connected with the ownership, operation, and transfer of U.S. real property interests.
Our real estate investment advisory is comprised of specialized attorneys who provide innovative tax strategies for our global clients, providing exceptional insights and competitive advantage. Our team understands the complexities and challenges of US securities laws and compliance standards, offering practical, solutions-driven advice to our global clients.
The lawyers at the Dilendorf Firm understand real estate and tax issues that are unique to real estate funds. When appropriate, we incorporate private REITs into real estate fund structures and apply our practical knowledge of the complex rules governing these entities to ensure regulatory compliance.
Our firm represents clients in New York City, state and federal courts in all areas of real estate investing and management, including property valuation, brokerage, and leasing disputes, foreclosures, and commercial contract disputes arising out of COVID-19.
Resources:
Summary
Service Type
Real Estate Fund Formation
Provider Name
Dilendorf Law Firm,
60 Broad Street, 24th Floor,New York,New York-10004,
Telephone No.212.457.9797
Area
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Description
The Dilendorf Law Firm advises clients on the establishment and operation of real estate investment funds and all aspects of fund formation, operations, and governance. Our knowledge and expertise in establishing real estate funds includes all facets of US and non-US sponsor representation, including onboarding, tax planning, and guidance after the launch.
