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What is an investment fund?
The key to investing success is to spread investments over a range of
asset classes. Most investors have stocks, bonds, and mutual funds, but
many don’t have the expertise or time to invest in real estate. Some
investors own shares of publicly traded real estate investment trusts
(REITs) that pool funds and buy real estate assets. Public REITs trade
like traditional stocks. Real estate private equity is a different type of
investment vehicle.
In a real estate private equity fund, investors pool their money
with other investors to fill the equity portion of a “capital stack,” to
purchase or develop a property. The capital stack is the combination
of sponsor capital, investor capital, and traditional bank debt that
make up the total cost to purchase or build a property. When an
investor has an economic interest in the equity of a project, they are
then generally eligible to participate in the economic profit when
the project stabilizes and sells. The sharing of the economic gain
means the investor is also taking on the risk of the project, which can
include the loss of his/her entire investment. Returns for this type of
investment asset class typically can approach 15-20% per year over the
life of the investment.
Private real estate offers many benefits to individual investors, such as
high returns, portfolio diversification, and tax efficiency. Institutional
investors have long understood the merits of this asset class and
relied on it in their portfolios to balance market uncertainty. Take
Yale’s endowment, considered the gold standard for its exceptional
performance; 10% of its $42 billion investment portfolio is allocated
to real estate. Not surprisingly, most endowments and pension funds
allocate a similar amount to real estate, but individual investors have
only recently begun to adopt this strategy.​
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What is private equity real
estate investing?

Private equity real estate
investing means having a direct
ownership interest in a piece
of property with the intent of
making a profit. It can be in the
form of land, office buildings,
apartments, self-storage facilities,
etc. Individuals can invest in
private real estate by acquiring
assets actively as a direct buyer,
or by investing passively. Passive
investing is when an investor
chooses to outsource his/her real
estate investments to a manager,
typically for a fee. There are
several different types of
companies that offer passive real
estate investing opportunities.
Investors can choose a private
equity real estate firm, an online
crowdfunding platform (e.g.,
CrowdStreet), a non-traded
private real estate investment
trust, or other IRS recognized
structures.
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​Who can invest in private
equity real estate?

Generally, private equity real
estate investing is only available
to accredited investors—a
regulation set by the federal
government—which is also
the criteria for investing with
Wingspan Development Group.
Accredited investors are defined
as those who have:
• Individual net worth
that exceeds $1 million
(excluding a primary
residence).
• Individual income exceeding
$200,000 in each of the
past two years and the
expectation to reach the
same level in the current
year.
However, some crowdfunding
entities do allow non-accredited
investors to participate in certain
real estate investments at
lower amounts.
​How safe is it to invest in
real estate?

Private real estate investors
should consider the level of
risk they’re willing to take to
achieve their investment goals,
and how long they are willing to
wait before they begin receiving
returns. Some investors may
focus completely on long-term
gains that have higher than
average returns but little to no
liquidity (immediate availability
of funds), while others may
want to generate steady income
that will offer more frequent
dividends. Most real estate
private equity investments in
development projects have a
3-5 year expectation for returns:
12-18 months to build, 12-18
months to stabilize the project
(92-95% occupancy), and 6-12
months to sell. There is risk
when investing in real estate, so
an investor should understand
the market, the sponsor, and
the project(s).
​How much of an investor’s
portfolio should be in
private real estate?

The old saying “don’t put all
your eggs in one basket” applies
to real estate, as well as markets.
Private real estate is cyclical in
nature and goes up and down
over time just like stocks and
bonds, but not on a daily basis.
It is considered illiquid, which
means an investor’s capital may
take months or years to unlock,
so it is not an option for those
who need that capital in the
short-term for living expenses or
college tuition.
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Who are Wingspan’s
investors?

Wingspan and its principals
have been inviting friends and
family investors over the years
to selectively participate in
development projects. Each deal
is structured separately with
varying terms and expectations.
As a result of Wingspan’s
growing pipeline of projects,
the need for additional sponsor
capital to fund its multifamily
developments, and requests
from additional individuals to
participate, Wingspan created
its “GP Fund” in early 2021. The
fund was the first opportunity
for the principals to expand
their network of friends and
family who were interested
in participating in real estate
private equity. The fund attracted
more than 80 investors who
made a minimum investment
of $100,000 into the fund.
Since closing, the fund has been
invested into three Wingspan
projects: HUB13 in Oak Creek,
Wisconsin; The Ruby at
Brookfield Square in Brookfield,
Wisconsin; and NÍCHE in
Tampa, Florida.
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​What is Wingspan's investment strategy?
Wingspan’s investment strategy focuses on multifamily apartment
and mixed-use developments. Specific growth markets are targeted
including, Southeast Wisconsin; Central Florida; select Chicago
suburbs; Phoenix, Arizona; and Atlanta, Georgia. Projects are in above
average wage and employment growth areas, close to transportation
hubs, and generally have limited direct competition of other
comparable offerings. Lastly, amenities are provided according to the
preferences of today’s renters, including pet friendly features, well equipped
fitness centers, state-of-the-art building access technology,
and secure package concierge systems.
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​If you are an accredited investor and
interested in learning more about Wingspan
Development Group and future investment
opportunities, please submit your contact
information through the following link:
investors.appfolioim.com/wingspandevelopmentgroup/investor/contact-us

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Wingspan Development Group

​Illinois Office: 
1001 Feehanville Drive 
Mount Prospect, IL 60056 
Phone: 847.394.6200 

Fax: 847.394.6205 ​

Wisconsin Office: 
3880 W. Wheelhouse Road  
Suite B 
Milwaukee, WI 53208 
Phone: 262.513.9300 
Fax: 262.513.9400 ​
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