Origin Investments to Convert IncomePlus RE Fund to a Private REIT

Origin Investments is converting its IncomePlus Fund to a private real estate investment trust (REIT) on January 1, 2025, with a 1099 reporting structure rather than the prior K1 partnership. The objective is to simplify the tax reporting process for the more than 1,500 current investors in the fund.

The move aims to broaden the fund’s “appeal to a wider cross section of registered investment advisors” and “having the potential to be a more attractive investment option for institutional investors,” the firm said.

“There are investment advisors who will not recommend or even consider alternative investment opportunities that don’t provide 1099 statements because of the tax-related issues they may cause for investors,” said Michael Episcope, co-CEO, Origin Investments. “Giving RIAs the ability to make investors’ lives simpler makes this conversion decision a no-brainer. “

The fund’s acquisition and asset management philosophies will remain unchanged from the transition to a private REIT, as the fund currently invests through a REIT subsidiary, Episcope said.

The IncomePlus Fund was initially introduced in 2019 and is designed for moderate-risk investors who are interested in a single real estate investment vehicle that offers both income and appreciation. The Fund’s objective is to build, acquire, and finance multifamily properties in its target markets, with a focus on common and preferred equity positions.

The IncomePlus Fund had a net asset value (NAV) of approximately $479.7 million through the third quarter based on common and preferred equity investment positions in 32 investments in 10 states. As of October 15, on a per unit basis, the NAV is $11.11. The net distribution yield for the IncomePlus Fund now stands at 6.20%.

Origin is allocating 20% of the fund’s NAV to ground-up development while selectively acquiring stabilized properties.