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Investment Strategy

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Features & Benefits

  • Access to an institutionally minded real estate strategy
  • Diversification into public, private & direct real estate assets
  • Periodic liquidity features
  • Investment strategy targets cash flowing assets designed to provide current income
  • The direct real estate expertise of Broadstone
  • Seeking muted volatility and low correlation to the public equity markets due to diversified fund composition
  • Heitman Real Estate Securities, LLC as sub-adviser for public real estate equities implementing covered call strategy
  • Institutional private real estate funds

Diversification does ensure a profit or protect against a loss. The number of shares that the Fund will offer to repurchase will be determined by the Board of Directors on a quarterly basis and is anticipated to be 5%. 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.

Why do you need real estate in your portfolio?

Investors seek to generate investment performance in their portfolios by balancing their risk for total return. While equity and bond markets can provide a solid base for a portfolio, alternative asset classes such as real estate have potential to add valuable portfolio characteristics such as reduced market correlation, overall risk reduction and increased portfolio diversification.

The addition of appropriate allocations to real estate can also assist in achieving:

  • Increased generation of income from cash flowing assets
  • Ownership of hard assets with lower price volatility
  • Opportunity for capital appreciation
  • Portfolio diversification

Direct Real Estate Transactions: BDREX’s ADVANTAGE

While other real estate funds may only offer real estate exposure via public securities and/or private offerings, BDREX delivers a true differentiator for investor portfolios: direct real estate exposure. The Broadstone team has underwritten and transacted upon billions of dollars of direct real estate transactions across commercial (medical, retail, industrial, specialty office) and residential (multifamily, student housing, and other residential) property types, and currently manages two privately offered real estate investment trusts (REITs), in addition to BDREX. On a combined basis, these offerings own in excess of $3 billion in commercial and residential property. Broadstone’s established market presence and track record have resulted in a robust pipeline of direct investment opportunities. Broadstone is highly qualified to offer this direct real estate access and exposure to BDREX investors.

The BDREX direct real estate allocation may provide investors exposure to:

  • Direct real estate holdings, which may demonstrate  lower volatility relative to public equity markets due to the mitigating effects of set lease terms, and have been inaccessible for most investors
  • The Broadstone network, with significant market presence for property sourcing
  • Carefully analyzed and underwritten direct real estate deals

Private Real Estate Funds: Why?

Private real estate funds sponsored by institutional managers like Broadstone are typically not available to all but the largest investors. With initial investment minimums that can range from $500,000 to well in excess of $10 million, investors in private funds include large pension funds, endowments, sovereign wealth funds, and ultra high net worth investors.

The inclusion of private real estate funds in BDREX may provide investors:

  • Exposure to highly diversified portfolios of real estate
  • Trophy assets in primary markets
  • Potential for long-term appreciation, providing the opportunity for greater total returns
  • Access to some of the largest real estate asset management firms

Utilizing deep private real estate knowledge, the portfolio management team carefully vets private funds via a proprietary selection and due diligence process.  A blend of private funds adds to the geographic and sector diversification of the portfolio. Together, these factors are designed to lower the Fund’s correlation to the broader markets and provide investors unique real estate access, all via an investment minimum generally lower than that of private funds.

There is no guarantee that the Fund will achieve its objectives, generate profits, or avoid losses. No level of diversification or non-correlation can ensure profits or guarantee against losses.

Public Real Estate Equities: Why?

As part of a broadly diversified strategy, BDREX allocates to US public REIT securities via a custom designed portfolio sub-advised by Heitman, a leading manager of actively managed real estate portfolios. This, coupled with a well-developed covered call writing program, is designed to provide consistent returns along with generation of income. By utilizing Heitman, BDREX provides an investor access to a highly experienced REIT investment manager with interval fund experience that would normally be accessible to only large institutional investors.

The public real estate equities allocation of the BDREX portfolio seeks to:

  • Increase overall portfolio diversification while reducing public market correlation
  • Provide portfolio management team a liquidity outlet as needed