Prospect Credit REIT
Prospect Real Estate’s dedicated non-traded REIT1 investing in U.S. real estate credit
0% Base Management and Performance Fees for Life for Private Offering Investors
Fees will apply to investors who participate at the commencement of the registered offering.
Operating Capability
Prospect Real Estate has owned and operated 111 commercial real estate properties and has invested in 114 total, worth $3.9B with a focus on multifamily (86 of 114 properties) since 2012 generating top quartile returns.4
Monthly Income Potential
PCRED has paid consecutive monthly distributions since commencement of operations by investing in stabilized, cash flowing assets with common equity subordination on ‘reset’ current valuations.3
Significant Opportunity Set
Unencumbered by legacy assets and liabilities, we believe PCRED is well positioned to capitalize on the $2.9T of expected U.S. commercial real estate mortgage loan maturities through 2029.5
PCRED targets preferred equity, mezzanine loans and senior mortgage investments secured by multifamily assets across the U.S.
Target Investment Allocation
Target Asset Allocation
PCRED Edge
Prospect Real Estate
Prospect Real Estate’s dedicated in-house asset and construction management teams enhance underwriting and operational capabilities.
Prospect Capital Management, L.P., is an SEC-registered investment adviser that, along with its predecessors and affiliates, has 37 years of experience targeting high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures.
Capital Invested
Realized
Investments6
Initial Property Value
PCRED is Offering 0% Fees for Life for Private Offering Investors4
Private Offering investors pay no management or incentive fees for the life of their investment.
Private Offering Terms
| Company | Prospect Credit REIT, LLC (“PCRED”) |
| Structure | Delaware LLC converting to non-listed Maryland C-Corp with REIT tax election |
| Offering | Private placement of up to $100 million. Offering is only available to accredited investors. |
| Sponsor | Prospect Credit REIT Advisor, LLC |
| Sponsor Investment | $10 million minimum from Sponsor and/or its affiliates. Up to $50 million “backstop” commitment funded during the Private Offering. |
| Base and Performance Fees | Investors in the Private Offering will pay no base or performance fees for the life of their investment. |
| Lock-up | Two years after the commencement of the registered offering. Sponsor will maintain a minimum investment of $10 million until Company reaches $500 million of aggregate contributions. |
| Distribution Frequency | Monthly |
| Distribution Reinvestment Plan | Stockholders may elect into the Distribution Reinvestment Plan |
| Expenses | Organizing & Offering Expenses will be paid by Advisor, and will not be reimbursed until the Company reaches $250 million of aggregate contributions during the registered offering. During the private offering, Operating Expenses will be paid by Advisor and will not be eligible for reimbursement until the launch of the registered offering. Upon registration, Advisor will pay all operating expenses in excess of 1.50% of NAV. All operating expenses paid by the Advisor are eligible to be reimbursed subject to the operating expense limit (1.50% of NAV) and a 3-year lookback from the date of the expense funding. |
| Leverage | Zero fund-level leverage target during the Private Offering. |
| Tax Reporting | Schedule K-1 in 2025; Form 1099-DIV thereafter (U.S. investors). |
Affiliates
