GK Real Estate Bond Offering Goes Full Cycle, Delivering 8% Annual Return
GK Investment Property Holdings II, also known as GKIPH2 – a Reg A+ bond investment backed by commercial real estate and sponsored by GK Real Estate – has completed its first series of its second Regulation A+ bond offering. The investment achieved targeted outcomes, delivering an 8% annual return over a five-year holding period and returning full principal to investors.
The first series, which matured in February 2025, marks a milestone for GK’s alternative investment platform.
“We are happy to have brought the first series of GKIPH2 full cycle and look forward to building on this success,” said James Kholamian, vice president of equity capital markets for GK Real Estate.
Over the life of the investment, GKIPH2 paid investors a 7% annual income (on a monthly basis) with an additional 1% deferred annual interest that was paid upon maturity. This brought total annual returns to 8% over five years.
“Fulfilling every commitment – providing monthly income, paying the deferred interest and a full return of capital – underscores our disciplined approach to commercial real estate investing and our commitment to delivering results. In the last five years, we were able to navigate pandemic shutdowns and rising interest rates without missing an interest payment to GKIPH2 investors,” said Kholamian.
The company’s vice president reflected on the trust investors placed in GKIPH2, due in part to its underwriting and asset management practices.
“Looking ahead, we believe that retail real estate is in a strong position to generate stable cash flow for investors — increased costs have limited new retail construction — bringing existing retail space availability to record lows, which leads to higher asking rents. Strong retailers will have to aggressively compete for well-located space that comes available, and sign longer lease terms to guard against disruption. Acquiring existing retail centers, with the potential for re-leasing space as it comes available, offers the opportunity to secure high quality, high rent paying tenants with long lease terms,” added Kholamian.
GKIPH2’s investment structure provides everyday investors access to income backed by institutional-quality commercial real estate through U.S. Securities and Exchange Commission-qualified Regulation A+ offerings, allowing for diversification, predictable income and transparency. GK plans to launch a new investment offering this summer.
GKIPH2 is a Regulation A+ bond fund focused on acquiring, lending on and managing income-producing commercial real estate assets throughout the United States. The fund targets stabilized retail properties with strong tenant bases to produce steady cash flow and support monthly interest payments to investors.
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