800+
AGENTS
WORLDWIDE
$150+
BILLION
ASSESSED
400k
ACTIVE
PROJECTS
+/-
800+
AGENTS
WORLDWIDE
$150+
BILLION
ASSESSED
400k
ACTIVE
PROJECTS
+/-
ABOUT US
Some of the largest, most well respected, builders, property developers, and institutional real estate owners in the world have partnered with us to restructure the economics of their real estate projects through the use of capital recovery fee assessments . By helping property developers, buyers and sellers alike, we have become the world’s largest originator and owner of capital recovery fee assessments, with total assets exceeding seven billion dollars . In the process, we have created what is projected to be one of the largest charitable endowments in the United States.
PORTFOLIO
The owners of hundreds of billions of dollars in residential and commercial real estate projects have partnered with Freehold to create assessments covering hundreds of thousands of planned and existing real estate projects. Freehold’s portfolio covers residential, commercial, hotel, resort, apartment, retail, and light-industrial real estate projects. Since the assessment is based on the gross sales price over 99 years, has an expected built-in correlation with inflation ,and generally must be paid as a condition of transfer of title, (e.g. no meaningful default risk), many consider the income stream to be an investment grade asset. Freehold’s philosophy is to acquire and hold these real estate interests as territory-based investments denominated in local currencies and/or as blended components of a larger portfolio of assets.
PORTFOLIO
The owners of hundreds of billions of dollars in residential and commercial real estate projects have partnered with Freehold to create assessments covering hundreds of thousands of planned and existing real estate projects. Freehold’s portfolio covers residential, commercial, hotel, resort, apartment, retail, and light-industrial real estate projects. Since the assessment is based on the gross sales price over 99 years, has an expected built-in correlation with inflation ,and generally must be paid as a condition of transfer of title, (e.g. no meaningful default risk), many consider the income stream to be an investment grade asset. Freehold’s philosophy is to acquire and hold these real estate interests as territory-based investments denominated in local currencies and/or as blended components of a larger portfolio of assets.
Further Information
Capital recovery fees can help developers restart stalled projects, creating significant economic benefits.
Title companies across the country routinely close transactions with the Freehold Instrument in place.
If you are buying property encumbered by a capital recovery fee, you can expect to pay a lower sales price and lower carrying costs.
DEVELOPERS
In today's challenging environment it is important to take a closer look at the economics of real estate development.
Traditionally, initial buyers shoulder 100% of the costs for amenities, infrastructure and other improvements, which creates a high barrier to entry. By utilizing a Capital Recovery Fee Assessment, developers can now more fairly apportion expenses incurred for permanent improvements among successive owners of the property, who will be enjoying the amenities and improvements for years to come.
The assessment is 1% of the gross sales price, repaid by future buyers who willingly assume the obligation, much like modern HOA dues and other assessments. Developers can retain the income stream, or offer the income stream to pension funds, endowments, insurance companies and other investors looking for a long term income stream correlated to inflation, while providing project liquidity. This, in turn, can provide “cascading” benefits to the local economy. A healthy construction industry is essential to the U.S. economy, and Capital Recovery Fee Assessment can play an important role.
Freehold works almost exclusively with major developers and owners of significant property holdings. Through a team of approximately 800 agents nationwide Freehold Capital Partners has created Capital Recovery Fees to hundreds of billions of dollars worth of real estate projects across the United States, including properties ranging from subdivisions to medical centers to Class A office buildings to retail centers to hotels. If this sounds like you or your business, we welcome your inquiry.
TITLE COMPANIES
Title companies across the country routinely make transactions with the Freehold Instrument in place. In fact, the Freehold Instrument was designed with significant input from title companies. Online requests for estoppel certificates and closing assistance make closing the transaction easy.
PROPERTY BUYERS
If you are buying real estate encumbered by a capital recovery fee, you can expect to pay less than you might have paid if 100 percent of the infrastructure costs had been put into the initial price. Additionally, you are playing an important role in helping to fund non-profits in the community, because a portion of every transfer fee dollar is put back into the community for uses such as open space, parkland and more.