BDREX https://bdrex.com Fri, 14 Feb 2020 21:53:48 +0000 en-US hourly 1 Benefit Street Partners Acquires Assets from Broadstone Real Estate https://bdrex.com/benefit-street-partners-acquires-assets-from-broadstone-real-estate/ https://bdrex.com/benefit-street-partners-acquires-assets-from-broadstone-real-estate/#respond Fri, 14 Feb 2020 17:15:28 +0000 https://bdrex.com/?p=7765 Benefit Street Partners Appointed Advisor to Two Real Estate Funds NEW YORK – February 11, 2020 – Benefit Street Partners (“BSP”), a leading credit-focused alternative asset management firm with $27 billion in assets under management, today announced the purchase of certain real estate related assets from Broadstone Real Estate, LLC (“Broadstone”). As part of the […]

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Benefit Street Partners Appointed Advisor to Two Real Estate Funds

NEW YORK – February 11, 2020 – Benefit Street Partners (“BSP”), a leading credit-focused alternative asset management firm with $27 billion in assets under management, today announced the purchase of certain real estate related assets from Broadstone Real Estate, LLC (“Broadstone”). As part of the transaction, BSP was appointed the new investment adviser to two real estate focused funds, effective immediately. In total, the transaction adds over $450 million in alternative assets under management to the firm. BSP also hired Broadstone’s distribution team of sales specialists. The terms of the transaction were not disclosed.

The purchase expands Benefit Street Partners’ real estate platform, which has been focused on commercial real estate debt. BSP currently manages a commercial mortgage REIT, Benefit Street Partners Realty Trust, Inc., with $3.2 billion in total assets under management. The two Broadstone funds include a private multi-family REIT, Broadtree Residential, Inc., and a real estate focused interval fund.

“This transaction brings a strong team of real estate investment professionals and alternative sales specialists to BSP,” said Richard Byrne, President of Benefit Street Partners. “The addition of these funds and distribution capabilities will serve to grow and enhance our platform.”

Willkie Farr & Gallagher LLP served as legal counsel to BSP.

About Benefit Street Partners
Benefit Street Partners L.L.C. (“BSP”) is a leading credit-focused alternative asset management firm with over $27 billion in assets under management as of December 31, 2019. BSP manages assets across a broad range of complementary credit strategies, including private/opportunistic debt, structured credit, high yield, special situations, and commercial real estate. Based in New York, the BSP platform was established in 2008. BSP is a wholly owned subsidiary of Franklin Templeton. For further information, please visit www.benefitstreetpartners.com.

About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton. Franklin Templeton’s goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes, including equity, fixed income, alternatives and custom multi-asset solutions. Franklin Templeton’s Alternatives capabilities comprise a broad range of strategies with $41 billion in assets under management. This includes alternative credit strategies that span private credit, special situations/distressed, structured credit and commercial real estate. In addition, the firm offers private equity, hedge strategies, real assets and venture capital strategies. Franklin Templeton’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in over 30 countries, the California-based company has more than 70 years of investment experience and approximately $688 billion in assets under management as of January 31, 2020. For more information, please visit www.franklinresources.com.

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Broadstone Real Estate Access Fund Announces Q3 2019 Shareholder Distribution https://bdrex.com/broadstone-real-estate-access-fund-announces-q3-2019-shareholder-distribution/ https://bdrex.com/broadstone-real-estate-access-fund-announces-q3-2019-shareholder-distribution/#respond Fri, 04 Oct 2019 12:05:13 +0000 https://www.broadstone.com/?p=7451 ROCHESTER, N.Y. – Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, today announced a quarterly distribution of $0.2350 per share for Class I and $0.2275 for Class W. This equates to an annualized distribution rate[1] of 8.7% for Class I shares and 8.4% […]

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ROCHESTER, N.Y. – Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, today announced a quarterly distribution of $0.2350 per share for Class I and $0.2275 for Class W. This equates to an annualized distribution rate[1] of 8.7% for Class I shares and 8.4% for Class W shares. The distribution will be payable on October 7, 2019 to shareholders of record as of September 27, 2019. BDREX is managed by Broadstone Real Estate, LLC (“Broadstone”).

We are very pleased that performance of the Fund has been such that its operations support us making a larger than normal distribution,” stated Kate Davis, Broadstone Real Estate Access Fund President and Portfolio Manager. “As we approach the Fund’s one-year track record, total return2 inception-to-date is 14.96% for Class I and 14.74% for Class W shares.

 2Performance data quoted represents past performance. For BDREX’s most recent performance data, please visit the Fund’s performance page.

BDREX is available in two share classes: Class W (BDRWX) and Class I (BDREX). The minimum initial investment is $2,500 for Class W shares and $1 million for Class I shares. Class I was created to serve the clients of Registered Investment Advisers (RIAs) and Wealth Managers, and provide a reduced-fee share class to individual investors seeking to invest more than $1 million. RIAs and Wealth Managers investing in Class I must achieve an aggregate of $1 million in BDREX investment across their client base.

ALPS Fund Services, Inc. and ALPS Distributors, Inc. serve as the Fund’s Administrator and Distributor, respectively. DST Systems, Inc. the parent company of the Distributor, serves as the Transfer Agent to the Fund. Heitman Real Estate Securities LLC (“Heitman”) serves as the Fund’s Sub-Adviser, and has delegated investment discretion for making the Fund’s investments that are allocated to publicly traded commercial real estate (“CRE”) securities. UMB Bank, N.A. serves as the Fund’s Custodian.

About Broadstone Real Estate Access Fund:

BDREX is a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, that deploys investor capital into a diversified pool of actively managed real estate holdings, blending investment in direct individual real estate transactions; private real estate funds; and public real estate securities. Investors may benefit from the access and diversification afforded by the Fund, along with its periodic liquidity and daily pricing features. BDREX is open for investment to individual and institutional investors with a minimum initial investment of $2,500 for Class W shares and $1 million for Class I shares. All prospective investors are invited to download an investor kit: broadstone.com/lp/BDREX

[1] The distribution rate is the amount, expressed as a percentage, a Fund investor would have received in distributions on an annualized basis divided by the Fund’s public offering price on September 30, 2019. The annualized distribution represents a single distribution from the Fund and does not represent the total returns of the Fund. Distributions may include a return of the money that shareholders originally invested and represent a return of capital to shareholders for tax purposes and may include other non-income sources. Distributions over the time period indicated above were fully covered by the fund’s free cash flow from operations and do not include a return of capital. Distributions are not guaranteed.

Class I gross expenses are 3.32% and net expenses after fee waiver and reimbursement are 2.50%, Class W gross expenses are 3.57% and net expenses after fee waiver and reimbursement are 2.75%. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until September 25, 2020 to ensure that the net annual fund operating expenses will not exceed 1.74% for Class I and 1.99% for Class W, subject to possible recoupment from the Fund in future years. Please review the Fund’s Prospectus for more detail on the expense waiver.

Important Disclosures:

An interval fund, such as BDREX, is a continuously offered, closed-end investment company that periodically offers to repurchase its shares from shareholders. The number of shares that BDREX will offer to repurchase will be determined by its Board of Trustees on a quarterly basis. Redemptions within 90 days of purchase may be subject to a fee. There is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in any repurchase offer.
The Fund’s shares will not be listed on an exchange and it is not anticipated that a secondary market will develop. The Fund is a new company and has no operating history. An investment is not suitable for investors that require liquidity. Investing in BDREX involves risks, including loss of principal and the other risks set forth in the “Risk Factors” section of the prospectus.
Because BDREX’s direct real estate investments will be relatively illiquid, the Fund may not be able to vary its portfolio in response to changes in economic and other conditions, which may result in losses to the Fund. The bankruptcy, insolvency or financial deterioration of any of the tenants of the Fund’s direct real estate investments could significantly delay the ability to collect unpaid rents or require the Fund to find new tenants. With respect to BDREX’s investments in private real estate investment funds, the Fund may not have the sole decision-making authority over such funds and may be unable to take actions to protect its interests in these investments. The Fund may be subject to additional risks if it fails to meet a capital call from a private real estate investment fund and the underlying fund may pursue investment strategies that compete with each other or do not align with those of the Fund. BDREX’s investments in the securities of publicly traded REITs will be subject to the risks affecting these REITs directly.

AN INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. TO OBTAIN A PROSPECTUS CONTAINING THIS AND OTHER INFORMATION, PLEASE CONTACT YOUR FINANCIAL ADVISOR OR VISIT WWW.BDREX.COM. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING.

The Fund is distributed by ALPS Distributors, Inc. (ALPS). ALPS is not affiliated with BDREX, Broadstone Real Estate, LLC, Heitman Real Estate Securities LLC, or UMB Bank, NA.

BRE000178-10/04/2020

 

 

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Interval Funds: The Democratization of Real Estate Investing https://bdrex.com/blog/interval-funds-the-democratization-of-real-estate-investing/ Thu, 18 Jul 2019 20:31:28 +0000 https://www.broadstone.com/?post_type=blog-post&p=7340 Learn about the sea change that is underway in the institutional investment world. Historically, investors have sought real estate as a source for current income. Alternative investments such as real estate have not been readily available to most investors until recently. Today, there’s a new way to access real estate. Download our whitepaper to learn: […]

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Learn about the sea change that is underway in the institutional investment world.

Historically, investors have sought real estate as a source for current income. Alternative investments such as real estate have not been readily available to most investors until recently.

Today, there’s a new way to access real estate.

Download our whitepaper to learn:

  • What defines an interval fund
  • How real estate interval funds open access for individuals, investment professionals, and their clients
  • How an allocation to real estate may benefit investor portfolios
  • Why the interval fund structure is worth consideration in today’s investment landscape

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Using an Interval Fund to Add Real Estate to Client Portfolios https://bdrex.com/blog/using-an-interval-fund-to-add-real-estate-to-client-portfolios/ Tue, 16 Jul 2019 20:11:23 +0000 https://www.broadstone.com/?post_type=blog-post&p=7294 Jennifer Dohrmann-Alpert, managing director of Real Assets Adviser, recently spoke with Kate Davis, president and portfolio manager of Broadstone Real Estate Access Fund, a real estate interval fund sponsored by Broadstone Real Estate, LLC (Broadstone or the firm). Following is an excerpt of that conversation. Hello Kate. I understand you have recently launched a new […]

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Jennifer Dohrmann-Alpert, managing director of Real Assets Adviser, recently spoke with Kate Davis, president and portfolio manager of Broadstone Real Estate Access Fund, a real estate interval fund sponsored by Broadstone Real Estate, LLC (Broadstone or the firm). Following is an excerpt of that conversation.

Hello Kate. I understand you have recently launched a new strategy, Broadstone Real Estate Access Fund. Can you tell me about it?

Broadstone Real Estate Access Fund (BDREX or the fund) is an unlisted closed-end investment company, which is commonly referred to as an interval fund. The fund seeks a return comprised of both current income and long-term capital appreciation, with low-to-moderate volatility and low correlation to the broader markets. It is focused on providing investors access to a diversified portfolio of real estate investments. As an interval fund, the fund provides investors the opportunity for liquidity on a quarterly basis, while still offering the potential benefits of being invested in real estate as an asset class, which is usually a relatively illiquid investment.

Read The Full Interview

This article was reprinted with permission from RealAssets Adviser

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Broadstone Real Estate Access Fund Announces Q2 2019 Shareholder Distribution https://bdrex.com/broadstone-real-estate-access-fund-announces-q2-2019-shareholder-distribution/ https://bdrex.com/broadstone-real-estate-access-fund-announces-q2-2019-shareholder-distribution/#respond Thu, 27 Jun 2019 13:19:35 +0000 https://www.broadstone.com/?p=7285 ROCHESTER, N.Y. – Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, today announced a quarterly distribution of $0.14 per share for Class I and Class W. This equates to an annualized distribution rate[1] of 5.23% for the Class I and Class W shares.  […]

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ROCHESTER, N.Y. – Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, today announced a quarterly distribution of $0.14 per share for Class I and Class W. This equates to an annualized distribution rate[1] of 5.23% for the Class I and Class W shares.  The distribution will be payable on June 28, 2019 to shareholders of record as of June 20, 2019. BDREX is managed by Broadstone Real Estate, LLC (“Broadstone”).

“We continue to be very pleased with the performance of the portfolio”, stated Broadstone Real Estate Access Fund President and Portfolio Manager Kate Davis. “Our balance of a uniquely managed public securities portfolio, combined with private real estate and soon-to-be-added direct real estate, seeks to provide investors with attractive income and total return.”

BDREX is available in two share classes: Class W (BDRWX) and Class I (BDREX). The minimum initial investment is $2,500 for Class W shares and $1 million for Class I shares. Class I was created to serve the clients of Registered Investment Advisers (RIAs) and Wealth Managers, and provide a reduced-fee share class to individual investors seeking to invest more than $1 million. RIAs and Wealth Managers investing in Class I must achieve an aggregate of $1 million in BDREX investment across their client base.

ALPS Fund Services, Inc. and ALPS Distributors, Inc. serve as the Fund’s Administrator and Distributor, respectively. DST Systems, Inc. the parent company of the Distributor, serves as the Transfer Agent to the Fund. Heitman Real Estate Securities LLC (“Heitman”) serves as the Fund’s Sub-Adviser, and has delegated investment discretion for making the Fund’s investments that are allocated to publicly traded commercial real estate (“CRE”) securities. UMB Bank, N.A. serves as the Fund’s Custodian.

About Broadstone Real Estate Access Fund:

BDREX is a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, that deploys investor capital into a diversified pool of actively managed real estate holdings, blending investment in direct individual real estate transactions; private real estate funds; and public real estate securities. Investors may benefit from the access and diversification afforded by the Fund, along with its periodic liquidity and daily pricing features. BDREX is open for investment to individual and institutional investors with a minimum initial investment of $2,500 for Class W shares and $1 million for Class I shares. All prospective investors are invited to download an investor kit: broadstone.com/lp/BDREX

[1] The distribution rate is the amount, expressed as a percentage, a Fund investor would have received in distributions on an annualized basis divided by the Fund’s public offering price on June 21, 2019. The annualized distribution represents a single distribution from the Fund and does not represent the total returns of the Fund. Distributions may include a return of the money that shareholders originally invested and represent a return of capital to shareholders for tax purposes and may include other non-income sources. Distributions over the time period indicated above were fully covered by the Fund’s free cash flow from operations and do not include a return of capital. Distributions are not guaranteed.
Important Disclosures:
An interval fund, such as BDREX, is a continuously offered, closed-end investment company that periodically offers to repurchase its shares from shareholders. The number of shares that BDREX will offer to repurchase will be determined by its Board of Trustees on a quarterly basis. Redemptions within 90 days of purchase may be subject to a fee. There is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in any repurchase offer.
The Fund’s shares will not be listed on an exchange and it is not anticipated that a secondary market will develop. The Fund is a new company and has no operating history. An investment is not suitable for investors that require liquidity. Investing in BDREX involves risks, including loss of principal and the other risks set forth in the “Risk Factors” section of the prospectus.
Because BDREX’s direct real estate investments will be relatively illiquid, the Fund may not be able to vary its portfolio in response to changes in economic and other conditions, which may result in losses to the Fund. The bankruptcy, insolvency or financial deterioration of any of the tenants of the Fund’s direct real estate investments could significantly delay the ability to collect unpaid rents or require the Fund to find new tenants. With respect to BDREX’s investments in private real estate investment funds, the Fund may not have the sole decision-making authority over such funds and may be unable to take actions to protect its interests in these investments. The Fund may be subject to additional risks if it fails to meet a capital call from a private real estate investment fund and the underlying fund may pursue investment strategies that compete with each other or do not align with those of the Fund. BDREX’s investments in the securities of publicly traded REITs will be subject to the risks affecting these REITs directly.
AN INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. TO OBTAIN A PROSPECTUS CONTAINING THIS AND OTHER INFORMATION, PLEASE CONTACT YOUR FINANCIAL ADVISOR OR VISIT WWW.BDREX.COM. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING.
The Fund is distributed by ALPS Distributors, Inc. (ALPS). ALPS is not affiliated with BDREX, Broadstone Real Estate, LLC, Heitman Real Estate Securities LLC, or UMB Bank, NA.
BRE000168-06/24/2020

 

 

 

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The Origins of Broadstone’s Real Estate Interval Fund: Client Challenge, Accepted and Met! https://bdrex.com/blog/the-origins-of-bdrex-real-estate-interval-fund/ Tue, 02 Apr 2019 18:43:16 +0000 https://www.broadstone.com/?post_type=blog-post&p=7026 Broadstone Real Estate, LLC (“Broadstone”) has proudly built its reputation on bringing institutional quality real estate investments to the individual investor. Our commercial (Broadstone Net Lease, “BNL”) and residential (Broadtree Residential, “BTR” or “Broadtree”) strategies are constructed with the objective of making private and diversified commercial real estate ownership available to individual investors, institutions, and […]

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Real Estate Interval Fund

Broadstone Real Estate, LLC (“Broadstone”) has proudly built its reputation on bringing institutional quality real estate investments to the individual investor. Our commercial (Broadstone Net Lease, “BNL”) and residential (Broadtree Residential, “BTR” or “Broadtree”) strategies are constructed with the objective of making private and diversified commercial real estate ownership available to individual investors, institutions, and wealth advisors. The REITs employ long-term buy and hold approaches when acquiring properties. Each fund employs conservative levels of leverage (for its respective asset type) and seeks to generate income. The vehicles are evergreen structures with redemption programs allowing the individual investor to decide on the right time for liquidity.  Broadstone offers investors a portfolio of real estate funds that meets the needs of the high net worth investor; this investor segment has demonstrated increasing demand for alternative investments over the past decade. These products have also been embraced by wealth managers and RIAs who function as fiduciaries and operate on a fee-only basis with no commissions charged to their clients.

BNL and Broadtree have been successful endeavors, however, these vehicles are not a fit for every investor’s portfolio. The funds are Regulation D private placement offerings, which means that investors must be “accredited” in order to invest. In addition, we have maintained substantial minimum investment levels to ensure investor suitability. Finally, while the strategies are diversified, the funds only invest in a single asset type or property segment.

We formed the Broadstone Real Estate Access Fund (“BDREX” or “the Fund”) at the request of our key RIA relationships. Their challenge to Broadstone was to create a product that could fit nearly any client’s portfolio, no matter the size. On the wish list was incremental liquidity, broader diversification, and a lower minimum investment level for clients. The RIAs still desired a conservative investment approach with a focus on current income generation, a non-commissioned product, and a fair fee schedule. In other words – bring the Broadstone Way to everyone!

As our team surveyed the landscape and considered how we could develop a product to meet these requests, we started to learn more about interval funds. Ultimately, the interval fund structure proved to be the best wrapper to deliver our next product. Interval funds are continuously offered, closed-end vehicles registered under the Investment Company Act of 1940. What makes the structure compelling is that investments can be made daily at a published net asset value. Redemptions are permitted on a quarterly basis with up to 20% of shares available for liquidity each year. This format, with some additional structuring, is an excellent mechanism for investors to access a host of less liquid, diversified real estate investments in the public and private space.

After we had our structure for BDREX, the Broadstone team spent an extensive amount of time considering what types of real estate investments best fit the Fund. Ultimately, we selected three distinct segments for the portfolio. The first segment is a public REIT equities strategy that is managed by Heitman Real Estate Securities, LLC (“Heitman”). Heitman is an international manager of real estate equities and real asset funds. The firm is implementing a public REIT equities investment plan for BDREX while utilizing a covered call strategy designed to increase current income. The second segment of the portfolio is a fund of funds approach to real estate investing. BDREX’s portfolio manager, Kate Davis, leads these efforts and allocates capital to a host of institutional funds. The funds often have $10 million+ minimum investment levels and are normally only accessible to the largest institutional investors. This component of the portfolio allows BDREX investors to tap some of the best managers in the world while having exposure to pieces of core assets in major markets. The final segment of the portfolio is dedicated to directly owning hard assets such as buildings in the office and retail sectors as well as multifamily and industrial properties. Every day Broadstone casts a wide net in search of properties; most years we are buying and selling more than $1 billion in real estate. Our investment process often produces interesting opportunities that may not fit with BNL and BTR’s investment mandates. We believe BDREX is an ideal spot to hold these assets and our intention is to bring our in-house sourcing, acquisition, and asset management skills to allow BDREX to build out a portfolio of real estate within its broader holdings.

The management team at Broadstone feels that we have created a product in BDREX that met the challenge our clients set before us. The interval fund structure seeks to provide the flexibility and liquidity mechanisms desired. The portfolio is diverse in its strategies and gives investors broader exposure to the world of commercial real estate, without over concentration in a single strategy or asset type. Finally, we have built a team and structure that can grow with the Fund and meet investor expectations.

Challenge accepted and met!

To learn more about investment opportunities in BDREX:

Download Investor Kit

Please see important disclosures below about BDREX.

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Broadstone Real Estate Access Fund Announces Q1 2019 Shareholder Distribution https://bdrex.com/broadstone-real-estate-access-fund-announces-q1-2019-shareholder-distribution/ https://bdrex.com/broadstone-real-estate-access-fund-announces-q1-2019-shareholder-distribution/#respond Fri, 29 Mar 2019 14:51:12 +0000 https://www.broadstone.com/?p=7113 ROCHESTER, N.Y. – Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, today announced a quarterly distribution of $0.15 per share for Class I and $.1435 for Class W. This equates to annualized distribution[1] rates of 5.73% and 5.48%, for the Class I and […]

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ROCHESTER, N.Y. – Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, today announced a quarterly distribution of $0.15 per share for Class I and $.1435 for Class W. This equates to annualized distribution[1] rates of 5.73% and 5.48%, for the Class I and Class W shares, respectively.  The distribution will be payable on March 29, 2019 to shareholders of record as of March 21, 2019. BDREX is managed by Broadstone Real Estate, LLC (“Broadstone”).

BDREX is available in two share classes: Class W (BDRWX) and Class I (BDREX). The minimum initial investment is $2,500 for Class W shares and $1 million for Class I shares. Class I was created to serve the clients of Registered Investment Advisers (RIAs) and Wealth Managers, and provide a reduced-fee share class to individual investors seeking to invest more than $1 million. RIAs and Wealth Managers investing in Class I must achieve an aggregate of $1 million in BDREX investment across their client base.

ALPS Fund Services, Inc. and ALPS Distributors, Inc. serve as the Fund’s Administrator and Distributor, respectively. DST Systems, Inc. the parent company of the Distributor, serves as the Transfer Agent to the Fund. Heitman Real Estate Securities LLC (“Heitman”) serves as the Fund’s Sub-Adviser, and has delegated investment discretion for making the Fund’s investments that are allocated to publicly traded commercial real estate (“CRE”) securities. UMB Bank, N.A. serves as the Fund’s Custodian.

About Broadstone Real Estate Access Fund:

BDREX is a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, that deploys investor capital into a diversified pool of actively managed real estate holdings, blending investment in direct individual real estate transactions; private real estate funds; and public real estate securities. Investors may benefit from the access and diversification afforded by the Fund, along with its periodic liquidity and daily pricing features. BDREX is open for investment to individual and institutional investors with a minimum initial investment of $2,500 for Class W shares and $1 million for Class I shares. All prospective investors are invited to download an investor kit: broadstone.com/lp/BDREX

[1] The distribution rate is the amount, expressed as a percentage, a Fund investor would have received in distributions on an annualized basis divided by the Fund’s public offering price on March 22, 2019. The annualized distribution represents a single distribution from the Fund and does not represent the total returns of the Fund. Portions of this and future distributions may include a return of the money that shareholders originally invested and represent a return of capital to shareholders for tax purposes and may include other non-income sources. Distributions are not guaranteed.

Important Disclosures:

An interval fund, such as BDREX, is a continuously offered, closed-end investment company that periodically offers to repurchase its shares from shareholders. The number of shares that BDREX will offer to repurchase will be determined by its Board of Trustees on a quarterly basis. Redemptions within 90 days of purchase may be subject to a fee. There is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in any repurchase offer.
The Fund’s shares will not be listed on an exchange and it is not anticipated that a secondary market will develop. The Fund is a new company and has no operating history. An investment is not suitable for investors that require liquidity, other than through the Fund’s repurchase policy. Investing in BDREX involves risks, including loss of principal and the other risks set forth in the “Risk Factors” section of the prospectus.
Because BDREX’s direct real estate investments will be relatively illiquid, the Fund may not be able to vary its portfolio in response to changes in economic and other conditions, which may result in losses to the Fund. The bankruptcy, insolvency or financial deterioration of any of the tenants of the Fund’s direct real estate investments could significantly delay the ability to collect unpaid rents or require the Fund to find new tenants. With respect to BDREX’s investments in private real estate investment funds, the Fund may not have the sole decision-making authority over such funds and may be unable to take actions to protect its interests in these investments. The Fund may be subject to additional risks if it fails to meet a capital call from a private real estate investment fund and the underlying fund may pursue investment strategies that compete with each other or do not align with those of the Fund. BDREX’s investments in the securities of publicly traded REITs will be subject to the risks affecting these REITs directly.
AN INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. TO OBTAIN A PROSPECTUS CONTAINING THIS AND OTHER INFORMATION, PLEASE CONTACT YOUR FINANCIAL ADVISOR OR VISIT WWW.BDREX.COM. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING.
The Fund is distributed by ALPS Distributors, Inc. (ALPS). ALPS is not affiliated with BDREX, Broadstone Real Estate, LLC, Heitman Real Estate Securities LLC, or UMB Bank, NA.
BRE000154-04/02/2020

 

 

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Broadstone Real Estate Access Fund Announces Initial Shareholder Distribution https://bdrex.com/broadstone-real-estate-access-fund-announces-initial-shareholder-distribution/ https://bdrex.com/broadstone-real-estate-access-fund-announces-initial-shareholder-distribution/#respond Fri, 04 Jan 2019 21:26:23 +0000 https://www.broadstone.com/?p=6704 ROCHESTER, N.Y. – Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, announced today it paid shareholders an initial quarterly dividend. Shareholders of record as of December 26, 2018 received a distribution of $0.12500 per share payable on December 31, 2018.  This equates to […]

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ROCHESTER, N.Y. – Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, announced today it paid shareholders an initial quarterly dividend. Shareholders of record as of December 26, 2018 received a distribution of $0.12500 per share payable on December 31, 2018.  This equates to a 5.24% annualized distribution[1]. BDREX is managed by Broadstone Real Estate, LLC (“Broadstone”).

We are pleased with the income generated by the portfolio since our inception in October,” said Kate Davis, BDREX’s President and Portfolio Manager. “We are happy we were able to distribute to our investors in the first quarter of operations of the fund.

BDREX is available in two share classes: Class W (BDRWX) and Class I (BDREX). The minimum initial investment is $2,500 for Class W shares and $1 million for Class I shares. Class I was created to serve the clients of Registered Investment Advisers (RIAs) and Wealth Managers, and provide a reduced-fee share class to individual investors seeking to invest more than $1 million. RIAs and Wealth Managers investing in Class I must achieve an aggregate of $1 million in BDREX investment across their client base.

ALPS Fund Services, Inc. and ALPS Distributors, Inc. serve as the Fund’s Administrator and Distributor, respectively. DST Systems, Inc. the parent company of the Distributor, serves as the Transfer Agent to the Fund. Heitman Real Estate Securities LLC (“Heitman”) serves as the Fund’s Sub-Adviser, and has delegated investment discretion for making the Fund’s investments that are allocated to publicly traded commercial real estate (“CRE”) securities. UMB Bank, N.A. serves as the Fund’s Custodian.

About Broadstone Real Estate Access Fund:

BDREX is a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, that deploys investor capital into a diversified pool of actively managed real estate holdings, blending investment in direct individual real estate transactions; private real estate funds; and public real estate securities. Investors may benefit from the access and diversification afforded by the Fund, along with its periodic liquidity and daily pricing features. BDREX is open for investment to individual and institutional investors with a minimum initial investment of $2,500 for Class W shares and $1 million for Class I shares. All prospective investors are invited to download an investor kit: broadstone.com/lp/BDREX

[1] The distribution rate is the amount, expressed as a percentage, a Fund investor would have received in distributions on an annualized basis divided by the Fund’s public offering price on December 27, 2018. The annualized distribution represents a single distribution from the Fund and does not represent the total returns of the Fund. The distribution paid on December 31, 2018 doesn’t include a return of capital or any other non-income sources. Portions of future distributions that the Fund makes may include a return of the money that shareholders originally invested and represent a return of capital to shareholders for tax purposes and may include other non-income sources. Distributions are not guaranteed.

Important Disclosures:

An interval fund, such as BDREX, is a continuously offered, closed-end investment company that periodically offers to repurchase its shares from shareholders. The number of shares that BDREX will offer to repurchase will be determined by its Board of Trustees on a quarterly basis. Redemptions within 90 days of purchase may be subject to a fee. There is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in any repurchase offer.
The Fund’s shares will not be listed on an exchange and it is not anticipated that a secondary market will develop. The Fund is a new company and has no operating history. An investment is not suitable for investors that require liquidity, other than through the Fund’s repurchase policy. Investing in BDREX involves risks, including loss of principal and the other risks set forth in the “Risk Factors” section of the prospectus.
Because BDREX’s direct real estate investments will be relatively illiquid, the Fund may not be able to vary its portfolio in response to changes in economic and other conditions, which may result in losses to the Fund. The bankruptcy, insolvency or financial deterioration of any of the tenants of the Fund’s direct real estate investments could significantly delay the ability to collect unpaid rents or require the Fund to find new tenants. With respect to BDREX’s investments in private real estate investment funds, the Fund may not have the sole decision-making authority over such funds and may be unable to take actions to protect its interests in these investments. The Fund may be subject to additional risks if it fails to meet a capital call from a private real estate investment fund and the underlying fund may pursue investment strategies that compete with each other or do not align with those of the Fund. BDREX’s investments in the securities of publicly traded REITs will be subject to the risks affecting these REITs directly.
AN INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. TO OBTAIN A PROSPECTUS CONTAINING THIS AND OTHER INFORMATION, PLEASE CONTACT YOUR FINANCIAL ADVISOR OR DOWNLOAD THE FILE FROM WWW.BDREX.COM. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING.
The Fund is distributed by ALPS Distributors, Inc. (ALPS). ALPS is not affiliated with BDREX, Broadstone Real Estate, LLC, Heitman Real Estate Securities LLC, or UMB Bank, NA.
BRE000129-01/02/2020

 

 

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Is Your Portfolio Truly Diversified? https://bdrex.com/blog/is-your-portfolio-truly-diversified/ Wed, 12 Dec 2018 18:25:14 +0000 http://www.broadstone.com/?post_type=blog-post&p=4916 Investing 101 teaches us that portfolios should include a variety of diverse assets in order to help protect from downside risk and lower volatility. Frequently, investors are instructed to include a mix of US equities, foreign equities (both emerging and developed markets), investment grade bonds, and high yield bonds in their portfolios. However, the effectiveness of this […]

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Investing 101 teaches us that portfolios should include a variety of diverse assets in order to help protect from downside risk and lower volatility. Frequently, investors are instructed to include a mix of US equities, foreign equities (both emerging and developed markets), investment grade bonds, and high yield bonds in their portfolios. However, the effectiveness of this diversification strategy varies, depending on the correlation among constituent assets.

Diversified Portfolio

Simply put, correlation is the extent to which assets perform in relation to one another. If assets in an investor’s portfolio are highly correlated, that investor is either hitting it out of the park or dragging their bat back to the car in the parking lot. Alternatively, low correlations among assets in a portfolio can help to reduce market volatility and boost the outlook for risk-adjusted returns.

What makes this tricky? Correlations between assets can change over time.  For example, Pfizer (NYSE: PFE) and Amazon (NASDAQ: AMZN) had a 0.13 correlation from 2001 through 2005, and a 0.16 correlation during 2016, but a 0.43 correlation from 2008 to 2009.¹ Correlations are measured from -1 (whereby performance moves in opposite directions) to 1 (returns move in the same direction). In times of market stress, asset correlations tend to rise, as shown in the example above.

In 2011, seemingly diverse financial assets were moving in lockstep. In the time since, that correlation has somewhat subsided, but there are numerous macroeconomic factors that would suggest that, on average, assets may be more highly correlated than they were 20 years ago.

Food for thought:

  • Globalization and the internet allow investors to play in multiple markets and react almost instantaneously to communications received at approximately the same time around the world. It is also easier to invest globally than it ever has been before, especially as multinational corporations have larger operations in many countries and goods are assembled across borders.
  • Broad economic shocks overwhelm company and industry-specific developments, causing investors to take on a risk-on vs. risk-off mentality. When macroeconomic worries are high, investors tend to flee high risk investments and flock towards lower risk investments, and in turn, when macroeconomic worries are low, the opposite happens. For example, the Brexit vote affected more than just Great Britain and Europe; the surprise vote to leave the EU had effects on financial assets globally.
  • Widespread use of index products and ETFs allow investors to increase or decrease their exposure to an asset class or sector more easily than other forms of trading. By selling shares of the S&P 500 index, investors are selling shares of 500 companies across a variety of industries all at once, rather than just a handful of targeted stocks.

Alternative assets, such as real estate, can provide a core risk management tool for investors due to the sector’s low or negative correlation with stocks and bonds. Real estate is less liquid than most financial assets, which contributes to its valuation moving more slowly and with less volatility when compared to stocks and bonds. As such, it is common for private real estate properties and portfolios to be valued on a quarterly basis. Investors in such offerings seek to avoid the often unpredictable day-to-day fluctuations of exchange traded assets, while potentially keeping correlations low. Private portfolios of real property have the potential to offer investors diversification in a number of ways, including by geography, size, lease term, tenant (or brand), lease type, etc.

Broadstone Real Estate (Broadstone) sponsors two such open-ended alternative investment offerings—Broadstone Net Lease (BNL), a diversified, net lease commercial REIT focused on acquiring freestanding, single-tenant properties, and Broadtree Residential (BTR), a residential income REIT that acquires multifamily apartment communities. Both REITs offer accredited investors an income-oriented alternative to the exchange-traded equity markets, dividend yield, and the potential for share price appreciation. An investor’s allocation of assets to a fund such as BNL or BTR can help to shield an investor from some daily market volatility and can be used as a tool for estate and succession planning.

To learn more about investment opportunities with BNL and BTR we invite accredited investors, advisors, and institutions to download an investor kit.

¹Source: https://www.portfoliovisualizer.com/asset-correlations

This blog post is for informational purposes only and should not be construed as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities.

Originally published February 9, 2017, updated December 12, 2018

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