Who Invests?

Flagship REIT appeals to a wide variety of investors, each of whom meets the SEC’s definition of an “accredited investor.” That designation does not uniformly describe the various investors who decide to invest in Flagship. The unique characteristics of each investor determine which attributes are more beneficial to their personal investment strategy.

Registered Investment Advisors

Clients are increasingly interested in accessing alternative investment opportunities due to their need for portfolio diversification and desire for sound alternatives to achieve elevated yield. Flagship REIT satisfies both of those criteria.

  • At 17% of total assets, commercial real estate represents the third-largest class of investments in the U.S., behind equities and bonds. As a result, more than 80% of investment advisers now recommend REIT investments to their clients.
  • Flagship REIT is non-commissioned with no sales load, unlike public non-traded REITs.

High-Net-Worth Individuals

Flagship REIT is attractive to those seeking current income, as it generally falls within the tax-advantaged 20% pass-through income deduction under the Tax Cuts and Jobs Act. Due to our fully-integrated platform, there is opportunity for attractive upside through capital accumulation.

  • Low correlation with equities
  • Generates attractive current income and capital appreciation potential

Family Offices

Flagship REIT helps family-owned businesses create a solution for multi-generational wealth preservation and growth. Our open-end structure eliminates the need to re-invest funds, which typically occurs when closed-end funds reach maturity.

  • Low correlation with equities
  • Diversification with stable growth
  • Open-end vehicle

International Investors

In addition to direct investment in the REIT, Flagship offers a way for non-U.S. investors to enter through Flagship Healthcare International Fund (FHIF), a Qualifying Investor Alternative Investment Fund (QIAIF). This tax-efficient, cost-effective structure enables FHIF to first invest in a U.S. Blocker corporation, which then invests in the REIT via the Operating Partnership.

  • No U.S. tax return required for non-U.S. investors
  • Fund structure eliminates the need for formation and management of U.S. blocker entities

UPREIT Transactions

Flagship REIT provides a unique structure for owners who wish to diversify from a single asset or small portfolio to participation in a larger portfolio. By exchanging a single property or portfolio of properties for share ownership, proceeds from the sale are tax-deferred. This allows sellers to retain a passive investment in real estate while diversifying their capital across the entire Flagship REIT portfolio and avoiding the complications of a 1031 exchange.

  • Shifts control and timing of realizing gain to the seller
  • Long-term, evergreen investment hold period offers returns to physician investor partners while relieving them of day-to day real estate ownership responsibilities

Endowments & Foundations

Flagship REIT gives tax-exempt and mutually beneficial organizations a way to block the Unrelated Business Taxable Income (UBTI) status that would ordinarily result from buying and selling real estate investment properties. By taking advantage of our special expertise and fully-integrated platform, tax-exempt entities present new opportunities, including:

  • Increased real estate allocations
  • Capitalizing on Southeastern demographic trends
  • Increased exposure to outpatient healthcare real estate
  • Alternatives to “mega-fund” investment options
  • Benefitting from a diverse portfolio of core, core-plus, value-add and development assets
  • Quarterly windows of liquidity with benefits similar to a close-end fund
  • Private structure with low correlation to equity markets

15 Riverbend Drive

Rome, GA

630 Southpoint Drive

Lexington, KY

7200 Halcyon Summit Drive

Montgomery, Alabama

6905 Knightdale Boulevard

Knightdale, NC

10001 Lile Drive

Little Rock, AR

101 RiverStone Vista

Blue Ridge, GA
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