From time to time Falcon will act as General Partner to bring together a number of investors in the purchase of a single property. While the exact holding company structure utilized will vary from deal to deal depending upon the investment characteristics of the transaction, a portfolio loan is frequently included in the structure to provide offshore investors with a tax-free current return. At the same time, American investors are given a return that is sheltered from U.S. tax due to interest and depreciation deductions. Investors from countries such as Germany, who can take advantage of an existing tax treaty, will receive a similar tax sheltered return.
Many investors prefer a Single Property Fund to a larger multi-property fund since they can decide on a case-by-case basis those specific properties in which they wish to invest. Investors can still achieve a measure of diversification by investing in a number of Single Property Funds. The minimum size investment in these funds is usually $250,000 but some investors will place $1,000,000 or more in an individual property fund. While many of the Single Property Funds have acquired properties that were primarily focused on providing good current income, a number of the funds that Falcon has sponsored have also had an important capital gains component. The following are examples of Single Property Funds that have been managed by Falcon: