InCommercial Launches Fifth Motor Fuel Fund, Aiming to Raise $100 Million
InCommercial Capital Corporation has announced the successful close of InCommercial Motor Fuel Fund IV LLC, a $75 million offering launched in March 2025, and the debut of its successor program, InCommercial Motor Fuel Fund V LLC, a tax-efficient real estate investment offering $100 million in equity commitments.
Motor Fuel Fund IV deployed approximately $120 million across 20 retail motor fuel properties located throughout Texas. The portfolio was assembled through sale-leaseback transactions with established operators and structured with long-term triple-net leases. Distributions are expected to begin in April, with investors seeing a minimum of 2:1 tax losses versus their invested capital, with early investors receiving enhanced benefits.
“Motor Fuel Fund IV’s successful deployment reflects our team’s disciplined approach to execution, market selection, and long-term operator partnerships. We’re excited to keep the momentum going,” said Erik Conrad, chief executive officer of InCommercial.
Building on that execution, InCommercial said Motor Fuel Fund V continues to focus on well-located gas station/convenience store assets that qualify as retail motor fuel outlets under the Internal Revenue Code. This classification may allow for accelerated depreciation treatment.
Motor Fuel Fund V aims to combine long-term net-lease income with leveraged bonus depreciation to enhance after-tax outcomes for investors, subject to individual circumstances and applicable tax rules.
InCommercial noted that the fund’s tax-efficient structure allows many investors to allocate capital that might otherwise be consumed by taxes.
“We’re seeing this strategy resonate not only with tax-aware investors and advisers, but with those navigating real-world tax and reinvestment challenges,” said Dan Mercer Jr., head of capital markets at InCommercial. “That includes failed or broken 1031 exchanges, situations where investors want liquidity without unintended tax consequences, real estate professionals seeking to offset active income, and sellers facing difficulty replacing leverage in a new exchange.”
Motor Fuel Fund V plans to acquire properties primarily through sale-leaseback transactions and enter into long-term triple-net leases with experienced operators. InCommercial said the fund is targeting 60% to 80% loan-to-value financing.
The offering includes early investor incentives, with a 10% bonus available on the first $10 million of commitments, followed by a 6% bonus on the next $25 million, according to the sponsor.
InCommercial Property Group invests in net-leased, necessity-based assets in convenience retail and motor fuel. With 25 years of experience and a fully integrated operating platform, the firm combines market knowledge with tax-efficient structures that help investors preserve capital, generate growth, and navigate motor fuel strategies.
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