GK Real Estate Bond Offering Goes Full Cycle, Returning $32M in Principal
GK Investment Holdings LLC, or GKIH, a Reg A+ bond investment backed by commercial real estate and sponsored by GK Real Estate, announced that all GKIH bonds were fully redeemed as of Nov. 13.
Investors were paid 7% annual interest for five years, and then upon a three-year extension, received 7.5% annual interest. Now, investors have received their full $32 million in principal back, marking a successful full-cycle completion to the GKIH bond investment.
The company noted that the bonds – which were invested in well-anchored retail shopping centers – were able to continuously pay investors their 7% to 7.5% annual interest, every month, even throughout the pandemic shutdowns.
“We are proud to have brought the GKIH bonds full cycle. The bonds persisted through a period of economic volatility, yet we always made our interest payments and now have fully repaid all principal,” said Garo Kholamian, president of GK Real Estate.
“We believe the success of the GKIH bonds demonstrates the strength of the retail real estate asset class to provide dependable cash flow and preserve value,” he added.
Previously reported by AltsWire, GK Investment Property Holdings II, also known as GKIPH2 – another Reg A+ bond investment backed by commercial real estate and sponsored by GK Real Estate – 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.
GK Investment Holdings III, LLC, or GKIH III, offers 8% bonds that combine the steady income characteristics of traditional bonds with the strength and diversification benefits of real estate-backed investments.
Designed to be less volatile than equities and to provide higher yields than conventional bonds, GKIH III bonds utilize a Reg A+ structure to make institutional-quality, cash-flowing commercial real estate accessible to both accredited and non-accredited investors. This marks GK Real Estate’s third Reg A+ real estate bond offering, blending the accessibility of public securities with the income potential of alternative real estate investments.
GK Real Estate, formerly known as GK Development, Inc., is a commercial real estate investment and development company based in Barrington, Ill. The company’s primary focus is on acquisition, development, redevelopment, and management of a diverse portfolio of commercial rental properties throughout the United States. GK Real Estate also sponsors bonds and private real estate funds and has offered investments to accredited investors, including Delaware statutory trusts.
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