When investing in commercial real estate through an intermediary, it is important to consider whether the fund has a finite or infinite life. By having a finite life, the fund manager is forced to eventually dispose of the assets and return the investors' capital. With which of the following fund structures do you expect the issues associated with finite life to be least prevalent?

Question

Quizplus · Accepted Answer

Open-end commingled real estate funds typically do not have a predetermined termination date, allowing them to operate on a more continuous basis. This structure means that issues associated with finite life, such as the need to dispose of assets by a certain date, are less prevalent compared to other types of funds that have a defined lifespan.

When Investing in Commercial Real Estate Through an Intermediary, It