Invest in Real Estate and Diversify Your Portfolio

CityVest invests in highly selective real estate private equity investment funds.

Get Started View Investments

Question IDs
Object Type Map


Visibility Map
Active Map
Validator Map
Children Map


Parent Map


Question Options Map


Question Options


Question Option Activate Map


First Name
Last Name
Main Phone
Email
 

Commercial Real Estate

What is Commercial Real Estate?

Commercial real estate is property intended for profit-making purposes, with a strong association to business usage. While commercial real estate is intended for work-space, there is some overlap with multi-family homes. A multi-family property that exceeds more than four units is considered commercial property. Reason being, at five or more units the focus shifts from the credit of the individual buyer to the income of the property. So, to think about commercial real estate as strictly business or work-space related is simply inaccurate. Commercial real estate is best defined as owned property intended to produce income. Realistically, commercial real estate can encompass any property type so long as it can produce income and/or profit.

Leases in a commercial real estate transaction can fall anywhere between one and ten years. Commercial real estate has benefits in long lease contracts giving the investor or investors cash flow stability so long as the property remains occupied by long-lease tenants.

Commercial property investing falls under the area of high risk, high reward real estate. A rather large amount of startup capital is needed if you are looking to invest in commercial real estate. In addition, extensive knowledge about the industry is necessary from a legal and financial perspective. Commercial real estate is a good investment if you can manage the cost and time it takes to produce a satisfactory profit.

Commercial Real Estate Example

Some of the more popular examples of commercial real estate are hotels, gas stations, strip malls, office buildings and large multi-family unit apartment complexes. As stated above, leases and building types vary in commercial real estate. Follow along with us to learn about different lease options and building classification for commercial real estate investments:

Primary Types of Commercial Real Estate Leases

  • Single Net Lease: the tenant occupying the space pays rent and building property taxes for their portion of the property being leased. The real estate owner covers all other operating expenses (insurance and maintenance). A tenant in this example could choose to pay rent plus a monthly fee associated to the year’s taxes or pay rent and one lump sum to cover the year’s fee in property taxes.
  • Double Net Lease: the tenant occupying the space pays rent, property taxes, and insurance for their portion of the building being leased. All other operational related costs, such as maintenance, is paid by the real estate owner. Keep in mind that building insurance and business insurance are quite different, in this case if a tenant in a shopping mall real estate venture signs a double net lease, they are then responsible for paying rent, fees associated to the building insurance and taxes for their occupied space, and finally their own business insurance covering their services or products being sold.
  • Triple Net Lease: the tenant in a triple net lease is responsible for all the costs associated with the space being occupied. So, in addition to rent, the tenant is responsible for paying insurance premiums (building insurance), property taxes, and any necessary operational costs such as maintenance and/or repairs. The tenant also must cover their own business insurance for their products or services being sold. A real estate owner in this case is securing a low risk lease and can target high-quality real estate without concern for high maintenance costs. Triple net lease investment offerings must come from accredited investors (investors with $200,000 of income or with a $1 million net worth).
  • Gross Lease: the real estate owner in a gross lease covers all the costs associated with the space minus the rent assigned. This means the building’s property taxes, building’s insurance and operational costs (maintenance and repairs) are covered by the real estate owner. A gross lease can be modified, for instance a tenant occupying a space in a mall may be required to pay the space’s utility bills in a gross lease.

Commercial Real Estate Building Classifications

The types of leases in a commercial property real estate venture can depend on the quality of the building, which is why the following commercial real estate classifications exist:

  • Class A Buildings: best in quality in terms of infrastructure, new construction aesthetics, recently built, in a good location.
  • Class B Buildings: built within the last twenty years in good locations, still sturdy and functioning well, but aesthetically looks less polished.
  • Class C Buildings: older buildings built more than twenty years ago that require renovations in less attractive locations.

In Summary

Commercial real estate is income and profit driven from an investment perspective. While a clear majority of commercial property can fall under business and work-space usage, it can also encompass any property type so long as it produces income/profit. If you’re looking to invest in commercial real estate it is important that you understand the zoning laws, lease types and building classifications of an intended property. You will also need a large sum of start up capital. CityVest is accustomed to working with commercial real estte, contact us today for more information to learn more.

Invest With Confidence

We Do the Work to Provide You the Best investment Opportunities

  • A completely new alternative to investing in stocks and bonds.

    Every CityVest investment undergoes a thorough due diligence process by our experienced underwriting team. Of the hundreds of projects reviewed each month, fewer than 1% are approved.

    CityVest can help you:

    • EARN PASSIVE RETURNS OF 10% TO 25%

      You benefit through professional investment structures, which target passive returns for our investors in a range from 10% to 25% - often with a preferred return.

    • ACCESS INSTITUTIONAL QUALITY FUNDS

      CityVest pre-screens investments for you through our underwriting and due diligence process. We partner with institutional investment funds and sponsors and we seek a preferred rate of return.

    • PORTFOLIO DIVERSIFICATION

      Since real estate investments typically generate cash flow income, while common stock does not, real estate valuations tend to be less volatile and less sensitive to market risk factors.

    • COMPLETE INVESTMENT MONITORING

      CityVest will handle all of the accounting and administration of your investment, while you can monitor the returns.

We simplify online real estate investing.

Get Started

Copyrights © 2024 All Rights Reserved by CityVest Capital Inc
Privacy / Terms of Service

Please read the important disclosures below.

CityVest.com is a website owned by CityVest Platform Services LLC, a subsidiary of CityVest Capital Inc. (together with its affiliates, “CityVest”). CityVest's software and technology web platform is used by real estate sponsors to advertise to interested parties information related to sponsors’ own real estate opportunities. By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service. By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service.

CityVest Platform Services is paid a fixed platform fee by investment management funds. In addition, CityVest Platform Services is paid fees by investment management funds for administrative services including anti-money laundering verification (AML) and accreditation verification. None of these fees are paid by investors to CityVest.

The information on this website does not constitute an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any investment or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents of any entity described on this website, which will contain information about each entity’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein and which qualifies in its entirety the information set forth herein. The information contained herein does not constitute part of the offering documents of any entity. An investment in any entity included on this website, entails a high degree of risk (including the possible loss of a substantial part, or even the entire amount, of an investment) and no assurance can be given that any entity’s investment objectives will be achieved or that investors will receive a return of their capital. Past returns are not indicative of future performance.

CityVest and its affiliates are not registered as a a broker-dealer, registered investment advisor, or crowdfunding portal. Unless stated otherwise in writing, CityVest and its affiliates do not offer brokerage or investment advisory services to website visitors.

The information contained herein is provided for general informational and educational purposes only and is not a substitute for professional advice.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources we believes are reliable, but we make no representations or warranties as to the completeness, adequacy or accuracy of any information provided. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.

Although not included or provide here, website visitors should read the confidential offering materials of any privately offered investment product, including all risk and conflict disclosures included therein, before investing. Please read detailed information about the investment manager’s detailed financial and information material that is provided by the issuer. The information contained herein should be treated in a confidential manner and may not be reproduced or used in whole or in part for any other purpose.

Articles or information from third-party media outside of this domain may discuss CityVest or relate to information contained herein, but CityVest does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by CityVest of the linked or reproduced content.

Investing in securities or real estate (the "Investments") poses risks, including but not limited to market risk, credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Investments are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments. Nothing on this website should be regarded as investment advice, either on behalf of a particular security or regarding an overall investment strategy, a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment.

CityVest does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. CityVest is not participating in the pPrivate placement of any securities, which would be made exclusively by the issuer. Private placements of securities are not publicly traded, are only for accredited investors, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by CityVest, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Information presented or posted on CityVest.com is qualified in its entirety by reference to the more complete information contained in the relevant issuer’s investment documents. The information on CityVest.com is not complete, and each prospective investor should carefully read all of the investment documents and any supplements thereto, copies of which are available directly from the relevant issuer. These documents should be reviewed before deciding whether to make an investment. All information, including Issuer Information, presented or posted on CityVest.com should not be used as a primary basis for an investor’s decision to invest. In the event of an inconsistency between any information, including issuer information, presented or posted on CityVest.com on one hand, and the relevant investment documents on the other, investors should rely on the information contained in the investment documents – which is only available from the issuer. The information on CityVest.com is subject to changes at the sole discretion of CityVest.

© 2024 CityVest Platform Services LLC. All rights reserved.