• Capital Raise: BlockEstate is raising capital from accredited U.S. investors (under SEC Regulation
D) and sophisticated international investors (under SEC Regulation S), for one of the world’s first
tokenized funds focused on U.S. real estate.
• Tokenized Fund: For almost all purposes, BlockEstate will operate like a traditional private
real estate fund, however, its shares have been “tokenized”, which means that its ownership is
represented by digital assets (tokens), each representing a share of the fund. By tokenizing the
fund BlockEstate token holders can take advantage of blockchain technology to lower transaction
fees, have faster deal execution and potentially access liquidity through trading on regulated
• Team & Investment Strategy: BlockEstate’s real estate team consist of experts who together have $650 million combined property management and development experience, and more than 70 years experience in real estate. The team will focus its investments on the Carolinas, specifically the cities of Asheville, Charlotte, Raleigh and Greenville - areas which have shown phenomenal growth over the last 10 years and which have proven historically resilient to market fluctuations. The team will take advantage of its extensive network of local real estate relationships, builders, and contractors to develop lucrative projects and access off-market deals. BlockEstate’s investment strategy involves a two-phased plan, which is first focused on acquiring stable, long-term income producing properties (multi-family, long-term commercial & industrial properties - target: 6-9% annually*), and then leveraging 40-50% of those assets to acquire more aggressive, high-yield investments (new construction & short term rentals - target: 15-30% annually*).
• Target Returns: BlockEstate aims to build a portfolio whose target net IRR is between 12%-20%*.
• Buyback & Burn Model: Once a quarter, the revenues generated from BlockEstate’s investments will be used to invest in additional properties and to buyback tokens from the token holders at NAV (net asset value) on the open market. Repurchased tokens do not go to the BlockEstate team. Instead, repurchased tokens will be “burned” and removed from circulation. This continually shrinks the total supply of tokens, causing each remaining token to represent a progressively greater percentage share of the fund’s assets.
• Token Value Drivers: Between the profit potential of the properties the fund purchases, the ever
increasing revenue potential of the additional properties the fund adds, and the ever diminishing
number of tokens in supply as the buybacks are implemented, each token’s value should
proportionally increase over time, driving returns for investors.
North Carolina is an extremely promising market for real estate. It currently holds Forbes’ “Best State for Business” title, and has enjoyed a place amongst the top 5 positions for the last 13 years. As a result, the state enjoys one of the highest migration rates in the country, and has been attracting continuous streams of new talent and business for more than a decade. This has helped foster a strong real estate market whose growth has outpaced the national average and continues to flourish.
Like its neighbor, South Carolina has experienced a massive
influx of migration into the state over the last 5 years (ranking
fifth in the nation for net migration). The state govenment has
enacted numerous incentives to attract foreign investors (“foreign
trade zones”) which have also proven to be a major driver
of development. The BlockEstate team has experience and
connections in this state, particularly with the city of Greenville,
which it will leverage for making investments.
Phase 1: Stable Investments
Phase 2: High-Yield Investments
BlockEstate fund structure proposed, buyback & burn model explored as reward model.
BlockEstate begins working with Riveles Wahab LLP to explore the legal, tax and regulatory structure for the fund. Partnerships with Polymath and Matador secured to provide security token issuance and guidance.
BlockEstate website and whitepaper are published publicly.
BlockEstate begins accepting investments from strategic partners and select investors
Token sale opens to accredited US and sophisticated international investors.
Real estate investment strategy is enacted - properties begin to be purchased.
Tokens will be issued to investors after a 1-year lock up period (from the date of sale). Tokens will be authorized for open trading on secondary markets.
Quarterly token buyback and burn model begins. From this point forward, each quarter the token buyback and burn model will be implemented.
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