Full Case Study
Project breakdown
Key Takeaway
A commercial real estate developer tokenized a $5M mixed-use property under SEC Regulation D 506(c). 5,000 tokens at $1,000 each. 340 investors. Fully subscribed in 22 days (vs 60-90 days traditional). Quarterly USDC distributions in 4 minutes at $12 gas cost (vs $12,600 ACH). Development cost: $148,000.
The Problem
The client had acquired a $5M mixed-use commercial property generating $310,000 annual NOI (6.2% cap rate). Traditional raise: 8–15 institutional investors at $250,000–$500,000 minimum, 60–90 day close timeline, quarterly distributions via ACH wire (3 business days, $15–$30 per wire, $12,000–$25,000 annual distribution processing cost).
Legal Structure
Delaware LLC SPV formed to hold the property. 5,000 membership units issued (representing 100% of LLC equity). Each unit: $1,000 minimum purchase price ($5M total at full subscription). Offering structure: SEC Regulation D Rule 506(c) — general solicitation permitted, mandatory accredited investor verification.
Results
| Metric | Traditional | Tokenized | Improvement |
|---|---|---|---|
| Minimum investment | $250,000 | $1,000 | 250× lower |
| Investor count | 8–15 | 340 | 23–43× more |
| Time to fully subscribed | 60–90 days | 22 days | 63–76% faster |
| Quarterly distribution time | 3 business days | 4 minutes | 1,080× faster |
| Distribution cost (340 holders) | $12,600 (ACH) | $12 (gas) | 99.9% lower |
What the Investors Said
'I've invested in three tokenized properties now. The instant distribution and the ability to see my exact holding on-chain at any moment is genuinely better than every traditional real estate investment I've made.' — Investor #7
