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Real Estate Capital Recovery Fees

Freehold Capital Partners

We partner with real estate developers and similar owners of large real estate projects. By working with us to structure a one percent capital recovery fee, the project developer/owner can more fairly apportion costs and, in consequence, lower the sales price. Since a portion of the significant capital investment in the project can be recovered over time, current and future buyers will enjoy lower acquisition costs. In this way a Capital Recovery Fee is distinguishable from a government transfer fee (i.e. a tax that raises property ownership costs for everyone as a means of funding government services).

The process starts by filing a legal instrument in the real property records, thereby assessing the property at the rate of 1% of the gross sales price for each subsequent sale. The assessment is collected at closing, and the result is a collateralized income stream. Capital expenditures can be recovered over time, or the future payments can potentially be sold off for liquidity today. It is an attractive alternative to forcing 100% of development costs onto initial buyers.

The owners of billions of dollars in real estate projects nationwide, including some of the largest, most well respected developers in the United States, have partnered with us to restructure the economics of their real estate projects. Our confidence in the value created and the integrity of the process is manifested by the fact that we take no fees up front, but instead partner in the future income. This aligns our interests with those of our development partners.

Whatever role you play in the real estate industry, We invite you to learn more about what capital recovery fees are, how they work, and what we do. A good place to start is by downloading our brochure.

DISCLAIMER: Nothing herein shall be deemed legal, financial, tax, or securities advice. Nothing herein shall be construed as an offer to buy, underwrite, register, or sell securities.