Thirdline Interval Fund Takes Northmarq Name, Sets 1-for-3 Reverse Split
Thirdline Real Estate Income Fund, an interval fund, will become Northmarq Real Estate Income Fund on Dec. 1 and complete a reverse stock split the same day. The split will raise its net asset value per share to $25, the company said. Shareholders will own about one-third as many shares, and the total value of their holdings won’t change.
The fund’s ticker will change from TREIX to NREIX. The fund’s board of trustees approved the split at a ratio of 1-for-2.993486, which turns each existing share into roughly one-third of a share. The fund said the ratio is set to produce a $25 NAV and could change if NAV moves before the split.
The ratio implies a current NAV of about $8.35 per share, roughly 8% below its March 31 NAV. The fund launched at $10 per share in September 2021. It reported NAV of $9.11 per share on March 31, down from $9.89 a year earlier. Its total return for the fiscal year ended March 31 was negative 0.55%, and net assets were $58.5 million.
Shareholders will receive whole shares plus cash for any fractional shares, according to the company. The fund said the total value of each holding and each shareholder’s proportional ownership won’t change. The cash payments may be taxable.
The rebrand follows Northmarq’s purchase of Thirdline Capital Management LLC, the Richmond, Va.-based firm that had advised the fund since it launched. Minneapolis-based Northmarq, a commercial real estate capital markets firm, announced the deal Sept. 21. Its investment management arm, Northmarq Fund Management LLC, is now the fund’s adviser.
“By adding the Thirdline team and TREIX to our platform, we are broadening the ways we connect investors with commercial real estate opportunities,” said Rance Gregory, Northmarq Fund Management president and chief executive officer, when the deal was announced.
Northmarq Fund Management, based in Lake Oswego, Ore., operated as Morrison Street Capital until Northmarq acquired it in 2024. It had about $534 million in assets under management, according to the fund. Northmarq is owned by Pohlad Companies, the Pohlad family’s investment firm.
Shareholders asked approved a new advisory agreement with Northmarq Fund Management at a Sept. 11 special meeting. Under the agreement, the fund’s advisory fee stays at 0.98%. Northmarq Fund Management also agreed to extend the expense limitation that caps the fund’s operating expenses at 1.5% of average daily net assets. Charles Hutchens, who has managed the fund since it launched, remains portfolio manager.
Hutchens and Lawrence Eiben founded Thirdline Capital Management in 2021. Hutchens previously spent 16 years at The Holladay Corp., a Richmond-based developer.
The fund invests in commercial real estate debt and equity, including mezzanine loans, preferred equity, and real estate securities. It offers to repurchase at least 5% of its shares each quarter. Of the $0.74 per share it paid out in fiscal 2026, $0.56 was classified as return of capital.
As of March 31, preferred equity made up 32% of net assets, mezzanine debt 15%, and private real estate funds 33%. About 82% of its net assets were valued using unobservable inputs. Net assets peaked at $65 million in March 2024. In the fiscal year ended March 31, the fund marked down a Detroit preferred equity position by $2.1 million, wrote off another investment, and stopped accruing income on three positions, including a $3 million loan. It repurchased 6.5% of its shares in February, above its standard 5% quarterly offer.
Charles Schwab & Co. held 79% of the fund’s shares of record as of Aug. 11. Northmarq said the fund is available to wealth managers through national custodial platforms.
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