Frequently Asked Questions About MarketSpace Capital

General FAQs

MarketSpace Capital is a Private Equity Real Estate Firm that focuses on ground up developments, value add investments, and acquiring partial interest in commercial real estate assets throughout the United States. By investing with MarketSpace, investors can own a share of a professionally managed, diversified mix of income producing commercial real estate assets.
MarketSpace Capital makes it easy for accredited investors to invest in real estate. We provide access to commercial real estate opportunities that were historically limited to only the very wealthy and those willing to participate in the day-to-day management of properties. We spend our time finding quality real estate investments, so you don’t have to. We then allow investors to participate in the benefits of commercial real estate investment with smaller investments. Instead of purchasing a multimillion-dollar building on your own, you can invest in a portfolio of multi-million-dollar buildings in a syndication. And we make the process transparent and painless allowing you to screen investments online and have access to all your investments and documents through one easy to use investor portal.
MarketSpace Capital invests in cash flowing value add commercial real estate properties in the retail, multifamily, office, industrial and hospitality sectors. Investors are entitled to a share of the cash-flow from rents as well as a share of the proceeds when the property is eventually sold. The average hold for an investment is 3-7 years. These investments are sometimes called syndications because the real estate company is syndicating some of the investment from other investors. Through strategic acquisitions of value-add commercial properties, MarketSpace Capital offers a diversified portfolio of high-performing quality value assets.
When investing in a REIT, investors have little information regarding actual properties the REIT owns and certainly can’t physically go and touch their investment. With MarketSpace Capital, investors can invest in individual properties giving added transparency and control over investment selection. In addition, REITs are such large entities that they can rarely participate in many of the smaller investments and typically don’t have the bandwidth to invest in value-add opportunities. MarketSpace Capital prides itself on being nimble enough to capture the smaller value add deals in various property types all across the country.
We target returns of 12-15% IRR over the lifetime of the investment through the return of current cash flow and capital appreciation captured on sale or refinance of properties. In addition to ground up development projects, we invest in existing value-add retail, multifamily, office, industrial and hospitality assets that can be improved through lease-up, purchased below replacement cost and have current cash flow.
MarketSpace Capital minimizes risk through location diversification, strategic purchases of assets below replacement value, maintaining low debt / equity ratios and high operating buffers. For every twelve opportunities we review, only one meets our criteria for a strong investment.
MarketSpace Capital acts as the managing member of the investment property LLC. The limited member investor of an LLC has no day-to-day management responsibilities. Decisions in an LLC are governed by a document called an Operating Agreement. While every operating agreement is slightly different, they usually include a manager (who may also be a member) and limited members. The manager typically makes all of the day-to-day decisions and the limited members act as passive investors on the transaction. The manager can determine how much cash to distribute to the limited members versus how much to hold in reserve and assess possible sales for the property.
When you invest with MarketSpace Capital, you purchase shares of an LLC as a limited member. That LLC owns a specific investment property like a retail shopping center. An LLC gives you liability protection, shielding your personal assets from the investment.
MarketSpace Capital manages private investments of physical properties around the United States. The investments are not traded on public stock exchanges and cannot be easily sold or traded. Different properties have different expected hold periods. A hold period is the anticipated time investors will be involved with the investment until it is re-sold or the loan is paid off, and range from less than 6 months to greater than 5 years. It is important to read the investor documents for a deeper understanding of the hold period for each investment. As an investor, you will receive a return on your investment when the company distributes money. Money is typically distributed on two occasions: 1) investors receive their share of the profits (quarterly cash flow) or 2) the property is sold or refinanced.
Although no investment is guaranteed, one benefit of investing in commercial real estate is that you are investing in physical assets around the United States. Your investment is in an actual property as opposed to a stock or bond or other non-physical asset and is therefore less volatile to economic or market conditions.
MarketSpace Capital provides quarterly updates to all investors. Additionally, investors have 24/7 access to their investor portal which contains information and documents about their property and investments. Finally, you will receive tax documents every year that you have a distribution from any investment with MarketSpace Capital.
MarketSpace Capital always manages with an operating buffer for the property. As such our investments typically don’t have a capital call. A capital call is where the investor is required to commit more money to the property beyond their initial investment. Rather than requiring additional investments from existing investors it is possible that investors will be diluted if more money needs to be raised.
Yes. Similar to investing in the stock market, there is no guarantee when you are investing in real estate. The real estate market has economic cycles and it is difficult to know how and when the economy will change.
While we cannot provide legal or tax advice and recommend you speak with your own accountant or attorney, one of the benefits of investing in real estate equity through Limited Liability Companies (LLCs) is that they can be taxed as partnerships and it allows for the entity to be pass through. For example, profits, losses and depreciation can be passed through to the investors, as applicable on equity investments.
The Securities and Exchange Commission (SEC) has provided for certain exemptions in the sale and registration of securities if they are only offered and sold to accredited investors. Accredited investors have to meet minimum income and/or net worth thresholds and are thought to be sophisticated enough to make informed decisions on the merits of any particular investment opportunity. By offering our investments only to accredited investors, we ensure regulatory compliance.
Investment minimums will typically be $50,000, however we reserve the right to alter this on a per project basis. There will be no maximum investment amount, but we reserve the right to limit the investment to amounts reasonable to invest efficiently.
Yes. We go to great lengths to ensure the security and privacy of all of our investors and our data and use SSL. SSL (Secure Sockets Layer) is the standard security technology for establishing an encrypted link between a web server and a browser.
Click become an investor and fill out the accreditation form on our website. Once received, your investment manager will follow up to approve your application and provide you access to the MarketSpace Capital investor dashboard where you can view our offerings and invest!

Selling your Interest FAQs

MarketSpace Capital, LLC (“MSC”) is a private equity commercial real estate firm based in Houston, Texas whose founders have over 25 years of experience in the industry. We are aware of the difficulty that limited partners have in finding a buyer for their partnership interests. Our business strategy is to provide a market for limited partners and thereby enhance the value of the partnership interests.
The founders of MSC have a long-term investment objective and the ability to absorb phantom income is built into the structuring of the portfolio. We employ a strategy of diversification by investing into hundreds of limited partnerships throughout the United States, and it is through this diversification that we are able to lessen the risk associated with owning these interests.
By selling your interest, you will first and foremost liquidate your investment, realizing its value immediately. Additionally, you will eliminate future K-1 reporting, avoid the unending annual payment of income tax on the investment, and simplify your estate planning.
By allowing MSC to make an offer proposal, you will gain insight into the potential value of your interest. Even if you decide not to sell your interest at the time the offer is made, you will have a better understanding of what you own and what the future might hold for the partnership you invested in.
We have simplified the sales process as much as possible, making it efficient enough to be done in approximately 7 days. Once you provide us with the documents to review, we will present you with a fair offer in a matter of days. When the seller accepts the purchase price, we will document and close the deal, and we will wire the funds directly to the seller’s bank account to be used immediately. If your co-investors have first right of refusal, the sale may take longer.

In order for us to complete a full analysis, we generally need the following documents, though it can vary on a case-by-case basis:

  • Your operating/partnership agreement
  • YTD P&L
  • 2 years’ worth of tax returns and a balance sheet
  • 3 years of K-1’s
  • Rent roll
MarketSpace Capital determines fair market value by first reviewing both the property and the partnership. Working with the limited partner, we will determine the strengths and weaknesses of the project. Next, we apply that information along with industry-standard valuation formulas to uncover the fair market value. We also have access to databases and information sources that allow us to evaluate interests and turn around a formal offer proposal quickly. In most circumstances, all that is needed to make an offer are the K-1s issued by the partnership over the past two years. The K-1’s allow us to confirm your current ownership percentage and verify any annual distributions the partnership is making so that we can accurately account for them in our offer.

To get started, first speak with one of our expert analyst. We’d be glad to answer your questions and guide you through the process moving forward. Call us at 832.819.1149 or submit your information to our contact form by clicking here.