InCommercial Launches Fourth Motor Fuel Fund, Aiming to Raise $75 Million
InCommercial Capital Corporation has announced the launch of InCommercial Motor Fuel Fund IV LLC, a fund aiming to raise $75 million from investors seeking tax advantages through leveraged bonus depreciation.
The fund’s primary investment focus will be gas stations and convenience stores that meet the qualifications of Retail Motor Fuel Outlets under the U.S. tax code. By securing this designation, the fund can leverage bonus depreciation to generate passive losses, potentially allowing investors to offset taxes on passive gains. According to InCommercial, this tax strategy presents an attractive solution for investors managing cash flow from real estate portfolios, business sales, or stalled 1031 exchanges.
“With ongoing market consolidation driven by retiring baby boomers, the convenience and gas sector investment opportunities have never been stronger. We are excited to pair these compelling market fundamentals with significant tax advantages for accredited investors,” said Erik Conrad, chief executive officer of InCommercial.
Since its launch, the fund has moved forward with its first acquisitions: three properties in the Greater Houston metropolitan statistical area. Two of InCommercial’s existing partners will operate these properties. Following its investment strategy, the fund will acquire the properties through sale/leaseback transactions and enter into 10- to 20-year triple net leases with established operators.
“We are thrilled to support our tenants’ expansion in the highly competitive Houston market while also delivering potential benefits to our investors through these well-positioned properties,” said Andrew Haleen, acquisitions director for InCommercial.
The fund is being offered to accredited investors under Regulation D, Rule 506(c) of the Securities Act of 1933. To facilitate the offering, InCommercial has engaged JCC Capital Markets LLC as its managing broker-dealer. Shares will be available through independent broker-dealers and registered independent adviser channels.
“We couldn’t be more excited about the opportunities ahead this year and our growing network of selling groups. With potential legislative changes on the horizon, the ability to offer our investors significant tax benefits and attractive upside is even more compelling,” said Dan Mercer Jr., head of capital markets for InCommercial.
Last month, InCommercial Property Group announced the promotion of JoAnn Saguto to chief operating officer. Saguto replaced Tiffany Fraley who currently runs InCommercial’s affiliated motor fuel operator, InConvenience Inc. As COO, Saguto focuses on advancing InCommercial’s capabilities and operational capacity, as it continues to grow its assets under management and expand its real estate and investment services.
InCommercial is an investment real estate portfolio manager. Through a 25-year history, its team is dedicated to creating demonstrable value by leveraging their long-standing industry relationships to attempt to create value at each step of the investment cycle starting at acquisition and continuing through streamlined operations, accretive financing, and efficient exits.
