Canopy Real Estate Partners Unveils "Asset-Backed Bond" Strategy with Fifth Fund Investment
Canopy creates hybrid products offering 6-8% annual returns plus equity upside, challenging billion-dollar fund model
SCOTTSDALE, Ariz., July 8, 2025 /PRNewswire/ -- Canopy Real Estate Partners has acquired Gold's Marketplace in Wheat Ridge, Colorado, for $15.8 million, demonstrating the firm's strategy of creating "asset-backed bonds" that offer 6 to 8 percent annual returns with equity upside.
The acquisition marks the fifth investment in what founder Jay Rollins calls a "bond-like product" that provides 6 to 8 percent annual returns with 16 to 19 percent upside potential over three to five years.
The 59,000-square-foot neighborhood retail center, located at 26th Avenue and Kipling Street, is 83 percent occupied with 17 tenants including Illegal Pete's and Esters Neighborhood Pub. The property was purchased at $268 per square foot from a seller facing a maturing bridge loan.
"We are not just buying assets. We are building a very intentional portfolio to provide investors with a new financial product that isn't available today," said Rollins, who has an institutional fund background and has completed more than 600 real estate transactions over 35 years. "While this vehicle is not technically a bond, we believe it is a "bond proxy," as the portfolio is designed to provide a steady dividend, with a mid-term duration, and equity-like returns at liquidation."
The investment strategy targets frustrated investors seeking alternatives to what Rollins calls an industry "obsessed with size" where "large funds equal large fees and create misalignment of interests."
"Over the last decade, the financial services industry has been consolidating and the big keep getting bigger. Most wealth advisors only put clients into the mega funds, which generate massive fee income to the fund managers, which misaligns interest with the investors. These large funds spend millions, marketing their products to wealth managers and consultants, and their clients (the actual investors) never see smaller, more targeted funds that in many cases produce much better results," said Rollins.
Rollins said, "I believe investors need more options that work for them vs. options that work for advisors and enrich the large managers."
Canopy partners with local real estate sponsors, providing capital and mentorship to help them become institutional-grade investment companies. For the Gold's Marketplace deal, the firm partnered with Denver-based CentrePoint Properties. CentrePoint plans to increase rents by 15 to 25 percent as below-market leases expire and activate underutilized space, projecting 18 to 20 percent internal rates of return.
"At Canopy, we believe there is a better way to invest, and we are giving investors an alternative to the mega funds. The Canopy brand signifies constant dividends, equity like returns, transparency, low fees, access to decision makers, and alignment of incentives," Rollins added.
The acquisition validates Canopy's thesis that 2025 presents "one of the best real estate buying opportunities in decades" due to forced sellers and illiquid owners in the middle market.
About Canopy Real Estate Partners
Canopy Real Estate Partners is an institutional real estate platform focusing on middle-market assets. For more information, visit www.canopyrepartners.com.
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SOURCE Canopy Real Estate Partners