Nico is a neighborhood investment company that makes it possible for people who love their neighborhood to build a long-term financial stake in their community by investing in local real estate. Their mission is to localize wealth creation and broaden access to neighborhood equity. Initially, they’ll do that with the launch of Nico Echo Park—the world’s first Neighborhood REIT. A real estate investment trust (REIT) is a type of company that owns a portfolio of income-producing properties that people can become shareholders in. A Neighborhood REIT means all properties owned are located in a specific neighborhood. Starting with $100, you own both a share of the income produced by the real estate and a share of its underlying value.
How you make money
They believe their investment strategy of investing in a concentrated geographic area (what they call the “Neighborhood Model”), with a focus on investing in multi-family, mixed-use, and commercial real estate (“Target Properties”) represents a unique opportunity to invest in the future of a specific neighborhood. Investors realize returns through quarterly dividends (under normal circumstances) and appreciation of properties owned by each Neighborhood REIT. In addition to generating financial returns, Nico is a certified B Corporation and seeks to contribute to positive social and environmental outcomes in the neighborhoods where it invests.
How Nico makes money
Nico does not charge investors any fees on an account level. However, there are several types of fees, including a 1.5% annual asset management fee paid by Nico Echo Park, Benefit Corp, to the sponsor company managing the properties.
These fees may include:
- Acquisition Fee.
- Asset Management Fee.
- Performance Distributions (Annual and Exit).
- Property Manager Compensation.
Please refer to the Offering Circular to see the complete list of fees.
Is it safe?
Most companies operate within a corporate structure that legally requires them only to maximize shareholder value. Public benefit corporations are different. By choosing to organize Nico Echo Park as a public benefit corporation, Nico is committed to pursuing positive social, and environmental outcomes as well as creating financial value for shareholders. Nico and the Neighborhood REIT are insured in various ways, but investments are not insured through FDIC or SIPC.