InCommercial Launches High Yield Income Fund Backed by Motor Fuel Assets
InCommercial Capital Corp. – a real estate investment firm specializing in net-leased, necessity-based assets – has launched InCommercial High Yield Income Fund, LLC, a new yield-focused offering targeting the motor fuel and convenience retail sectors.
According to the firm, the fund is designed to generate consistent and attractive income for investors by originating short-term bridge and mezzanine loans secured by triple-net leased properties. These loans are to support the acquisition, refinancing, and operation of gas station and convenience store properties, aligned with InCommercial’s motor fuel investment strategy.
“We’re seeing a clear appetite among advisers and family offices for credit-based structures that prioritize income and stability,” said Dan Mercer Jr., head of capital markets. “This fund is built to deliver just that, while maintaining full alignment with InCommercial’s focus on essential, recession-resistant retail.”
InCommercial leadership said the fund enters the market amid legislative support for tax-advantaged assets such as those underlying the fund. Pending legislation changes to bonus depreciation are contributing to heightened demand for qualified real assets, including retail motor fuel outlets, which create tax efficiency alongside long-term stability and cash flow.
“Strategically positioned in the capital stack, the fund offers investors a unique combination of yield, downside protection, and exposure to tax-advantaged real assets,” said Erik Conrad, founder and chief executive officer of InCommercial. “Complementing our suite of alternative investment solutions, the fund is supported by our fully integrated gas station and c-store operating platform as well as our deep market knowledge in this space.”
The fund targets a 10% annualized return through an 8% preferred distribution and 2% profit participation. Its loans are short-term in nature (typically six to 12 months), fully secured by underlying real estate assets, and structured with full recourse, aiming to preserve capital and provide investors with consistent, high-yield performance. The fund has a perpetual structure and will be offered to accredited investors pursuant to Regulation D, Rule 506(c) under the Securities Act of 1933.
The launch adds to InCommercial’s growing suite of alternative offerings, including Delaware statutory trusts and InCommercial Motor Fuel Funds IV LLC, each centered on the firm’s core strategy in necessity-based real estate. The latter aims to raise $75 million from investors and launched in March.
Last month, InCommercial Property Group announced the promotion of Andrew Haleen to chief investment officer. In the role, Haleen is leading InCommercial’s overall investment strategy, portfolio oversight, and capital deployment across its retail-focused real estate and structured credit platforms.
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.
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