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How owning a share of a commercial property through an LLC works. Ondo has no offering open to investors today.
Fractional ownership allows multiple investors to collectively purchase a commercial property through a legal entity. Each investor owns a proportional share and receives distributions based on their ownership percentage, making commercial real estate accessible without the capital requirements of full ownership.
In a typical fractional deal, a sponsor identifies and underwrites a commercial property. The deal is held in a dedicated LLC or SPV with its own operating agreement.
In a typical structure, qualified investors purchase membership interests in the entity. The minimum investment, terms, and projected returns are disclosed in the offering materials.
Once funded, the entity acquires the property. A property manager typically handles leasing, operations, maintenance, and financial reporting on behalf of investors.
Investors typically receive cash-flow distributions (for example monthly or quarterly) and periodic performance reports, as set out in the operating agreement.
At the end of the hold period, the property is sold and net proceeds are distributed to investors proportional to their ownership interest.
Set per offering
Each offering sets its own minimum. It is usually far lower than buying an entire commercial property outright.
Set per offering
Cash-flow distributions from net operating income are usually paid on a regular schedule defined in the operating agreement. They are not guaranteed.
Defined hold period
Properties are usually held for a defined period, then sold. Net proceeds, including any appreciation, are distributed proportionally to investors.
The information provided on this page is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment product. All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Projected returns are estimates only and may not reflect actual performance. Please consult with a qualified financial advisor, attorney, or tax professional before making any investment decisions.