Avatar Financial Group launched a new commercial mortgage fund with a REIT structure that delivers a streamlined experience to investors including a steady deployment of capital. The new fund, Avatar Commercial Mortgage REIT LLC, will raise money through an offering of membership interests, so investors will become equity owners in the entire fund rather than only in a particular loan.

“In the past, investors have participated in Avatar-originated loans on a loan-by-loan basis,” said T.R. Hazelrigg IV, president and co-founder of Avatar. “Avatar Commercial Mortgage REIT LLC delivers investors the benefits of a debt fund with a tax-efficient REIT structure. There are true advantages of this new REIT structure and we believe this new vehicle will positively impact investors as a continuing or new investment partner with us.”

The fund will raise money through a private placement offering of membership interests to accredited investors in order to make loans secured by first lien interests in real property located throughout the United States. The REIT will be a wholly owned subsidiary of the fund. The minimum investment amount per investor is $100,000.

“Avatar Financial Group’s client-first approach has always been supported by a consistent emphasis on smart capital deployment and preservation since our inception in 2003. We continue to pursue that strategy and are adding new options for investors this year,” said Jerry Zevenbergen, CEO and co-founder of Avatar Financial Group. “We pride ourselves for consistently achieving results and this shift allows us to continue to work to improve the investment process for our partners.”