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Sandlapper Launches $10 Million Private Placement Offering

Sandlapper Capital Investments LLC, a sponsor and distributor of alternative investment products, launched a $10 million private placement investment offering, SL Opportunity Finance LLC.

Sandlapper said that it developed the product after recognizing a need for short-term capital deployment when creating longer-term investments to meet specific market demands.

“Between 2005 and 2008 nearly $11 billion of equity was placed into approximately 1,000 syndicated investments that acquired somewhere between $30 and $50 billion of commercial properties nationwide almost exclusively for the 1031 exchange buyer,” states Sandlapper founder and chief executive officer, Trevor L. Gordon.

The 1031 exchange is a tool for real property investors to defer taxable liabilities due when they replace one asset with another in accordance with the requirements as defined by the IRS under Internal Revenue Code §1031.

“Most of these programs created with the 1031 exchange buyer in mind during this period used considerable leverage with an average term of 10 years on their loans. With these loans maturing, most of these investment programs are liquidating their assets, setting the investors up for a need, should they seek the continued deferral of their capital gains, to replace these investment properties,” states Gordon.

He explains further, “We saw the need to offer a product for investors seeking to reinvest these earnings and are actively expanding to help fill this void. SL Opportunity Finance will allow us, as well as other replacement property investment companies, to more quickly and efficiently acquire real property assets that can be delivered to the exchange buyer. Dynamic markets create the potential for ancillary opportunities, and SL Opportunity Finance is one of those potential opportunities.”

SL Opportunity Finance will provide short term capital to investment program sponsors, including affiliates of the company, to facilitate the acquisition or development of real properties to be structured with the 1031 exchange buyer in mind.

Sandlapper will sell preferred units of the company to accredited investors, entitling them to a preferred distribution accruing units at a cumulative 10 percent per year, paid quarterly. There will also be redemption units paid at the end of the life cycle.