The PILLAR Real Estate Fund
Turning Market Dislocation into Investor Opportunity
An Evergreen Fund Redefining Real Estate Investment Performance
The Fund at a Glance
The PILLAR Real Estate Fund is a strategically structured evergreen fund that stands at the intersection of three defining market forces: office assets trading at record discounts, strong tenant appetite for flexible space, and the accelerating return-to-office shift.
By purchasing assets below replacement cost and introducing high-visibility tenants such as Regus alongside traditional long-term lessees, the Fund delivers immediate income and long-term appreciation across market cycles.
- Fund Type: Evergreen (Open Ended Fund)
- Legal Structure: Delaware Limited Partnership
- Target Fund Size: $50M–$100M
- Minimum Investment: $250,000
- Franchise Expansion
- Target: 10-20 new Regus locations
- Capital: $16M–$20M
- Real Estate Acquisition
- Target: ~5 buildings at 30-50% below replacement cost
- Capital: $25M–$75M
A Generational Opportunity
The Market Shift Redefining Real Estate Investment
Amid rising rates and $1.8 trillion in maturing loans by 2026, high-quality office assets are trading 30–50% below replacement cost as owners seek liquidity. For well-capitalized investors, this dislocation represents a rare opportunity to acquire strong properties at deep discounts through a disciplined commercial property investment approach.
At the same time, flexible offices are resurging. The $39.6 billion global flexible workspace market is projected to reach $136.5 billion by 2032, growing 14.5% annually. While traditional long-term leases lag, flexible formats thrive, offering professionals structure, community, and access close to home.
Among the leaders is Regus, a part of IWG, which operates over 3,000 centers worldwide and serves 83% of the Fortune 500. As an immediate anchor tenant, Regus franchisees lease space within PILLAR-owned properties, creating buzz, foot traffic, and stable cash flow from day one.
Through disciplined acquisitions and strategic leasing, the PILLAR Real Estate Fund transforms undervalued office buildings into vibrant, income-producing assets, driving measurable commercial real estate ROI for its investors.
Our Unique Dual Structure
OpCo + PropCo: Two Engines. One Performance Strategy
Through its OpCo + PropCo structure, the PILLAR Real Estate Fund operates as a vertically integrated platform. Operations drive occupancy and stable income, while ownership accelerates long-term appreciation. This synergy reduces risk, creates dependable cash flow, and optimizes returns across market cycles, an approach rarely seen in real estate investment funds.
OpCo (Operating Company)
Core Functions
Site selection, franchise leasing and management, daily operations, tenant services, and community engagement
Leadership
Seasoned operators with deep franchise execution expertise
Capital Deployment
Approximately $1M per site for 10–20 Regus locations, rolled out in phases
Investor Benefits
Immediate operational cash flow, brand strength through Regus, scalable operations, and optionality for future independent exit
PropCo (Property Company)
Core Functions
Distressed asset sourcing, acquisition, ownership, capital improvements, lease-up, and long-term value creation
Leadership
Led by evergreen fund management in collaboration with specialist real estate advisors
Capital Deployment
Approximately $50M target for five strategic acquisitions
Investor Benefits
Deep acquisition discounts, diversified tenancy, appreciation potential, and value enhancement through modernization
Investment Scenarios
Engineered for Yield and Growth
The PILLAR Real Estate Fund’s integrated investment framework gives investors access to two complementary strategies that work in tandem to build value. One emphasizes ownership and control, the other liquidity and optionality, but both are engineered to generate consistent income and long-term appreciation within a disciplined evergreen fund structure.
Scenario 1: Direct Acquisition & Regus Retrofit
- Step 1
Target distressed Class B/C office building in prime metro area or bustling suburb - Step 2
Purchase at 30-50% below replacement cost - Step 3
Allocate 20-30K square feet to a new Regus center - Step 4
Build-out by UFO in 3-4 months; Regus signs as anchor tenant - Step 5
Value creation through immediate cash flow + property appreciation
Scenario 2: ROFR Lease & Strategic Optionality
- Step 1
Secure 10-year lease on 15-25K square feet for Regus center - Step 2
Negotiate Right of First Refusal on entire asset - Step 3
Immediate Regus cash flow offsets lease cost - Step 4
On-the-ground view of tenant mix & building performance - Step 5
Exercise ROFR to purchase or continue leasing (strategic optionality)
Risks & Mitigation
Reducing Risk. Reinforcing Returns.
Every investment carries risk, but disciplined structure and experienced execution turn those risks into managed variables. The PILLAR Real Estate Fund integrates institutional-grade safeguards at every stage, ensuring investor capital is both protected and positioned for compounding performance typical of a mature evergreen fund.
Market Risk
Economic downturns, interest rate shifts, and changing tenant demand can impact property valuations and leasing activity.
Mitigation
- Diversified Portfolio
The PILLAR Real Estate Fund invests across multiple markets and property types to minimize regional or sector-specific volatility. - Immediate Cash Flow
Regus tenancy provides stabilized income from the day of acquisition, insulating returns from short-term market swings. - Discounted Entry
Acquiring distressed assets well below replacement cost builds a natural margin of safety and enhances recovery potential.
Operational Risk
Tenant defaults, cost overruns, and project delays can affect cash flow and performance.
Mitigation
- Experienced Leadership
The Fund is led by seasoned professionals with a proven track record in real estate investment and workspace operations. - Proven Operating Model
Each property follows a tested model anchored by Regus as an independent tenant to ensure reliable occupancy and steady cash flow. - Tenant Quality Controls
All tenants undergo strict screening and credit evaluation to maintain stability and minimize default risk.
Regulatory Risk
Changes in zoning, building codes, or environmental standards could affect asset performance or redevelopment timelines.
Mitigation
- Comprehensive Due Diligence
Every acquisition undergoes a full legal, zoning, and environmental review before commitment. - Specialized Legal Counsel
Experienced advisors guide compliance and monitor evolving regulations. - Proactive Oversight
The fund maintains strict adherence to all standards to prevent disruption and sustain long-term investor confidence across its evergreen fund model.
Why Investors Choose the PILLAR Real Estate Fund
We turn downturns into dividends.
Others wait for recovery. PILLAR builds it. Backed by proven leadership and an integrated structure, the fund turns market volatility into controlled, repeatable performance that compounds within a disciplined evergreen fund environment.
Exclusive Franchise Access
Through its partnership with United Flexible Offices (UFO), the fund holds an exclusive Regus franchise license, granting direct access to key U.S. markets and the ability to deploy flexible workspace centers with minimal competition.
Veteran Leadership
Led by Russ Rosenzweig, a proven operator with a history of high-return acquisitions and exits, and supported by Arête & Associates, a seasoned real estate investment funds management group, the fund combines Wall Street discipline with hands-on execution.
Operational Expertise
Each acquisition is anchored by a Regus center, ensuring immediate tenancy activation, rapid occupancy growth, and stabilized revenue. This structure generates early cash flow while enhancing long-term property value.
Strategic Precision
The PILLAR Real Estate Fund’s dual-market strategy blends direct acquisitions for appreciation with lease-first structures featuring a Right of First Refusal (ROFR), balancing offensive opportunity with defensive flexibility.
Insider Access & Data Advantage
Through Regus performance analytics, Round Table Group’s distressed asset network, and long-standing YPO relationships, the fund maintains a steady pipeline of vetted, off-market opportunities supported by in-house brokerage and underwriting expertise.
Disclosure
The PILLAR Real Estate Fund is offered exclusively to accredited investors under Regulation D of the Securities Act of 1933. This material is for informational purposes only and does not constitute an offer to sell or a solicitation to buy securities. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Investors should carefully review the Fund’s Private Placement Memorandum (PPM) before making any commitment.