Commercial properties can be overlooked by investors due to their higher entry price and perceived complexity in exiting them – I.e. – getting your cash out when the time comes.
High-quality commercial assets can command prices above $10 million, which can deter investors from seeing them as a realistic option, or from allocating the significant capital required for a single property. However, commercial property syndications can provide an appealing alternative. By pooling capital from multiple investors, syndications allow you to access top-tier commercial assets, leased to reputable tenants over 15–20-year lease terms, that would typically be out of reach for individual investors.
When it comes to exiting a syndication, not all providers are the same. At Classic Collectives, it’s standard in all Partnership Agreements to include a Strategic 5-Year Review. This review period offers investors a guaranteed exit after five years, which provides a sense of security and predictability – and a guaranteed exit plan. Generally speaking, commercial property syndications don’t have a fixed term – so these built-in review periods give our wholesale investors greater flexibility than typical syndications. You can read more about exit mechanisms in commercial property syndications here.