Full Case Study
Project breakdown
Key Takeaway
A commercial real estate fund manager tokenized a $2.4M multifamily property under Regulation D 506(c). 2,000 tokens at $1,000 each. 180 accredited investors. ERC-1400 on Polygon PoS. Monthly rent distributions via smart contract in 4 minutes. Minimum investment reduced from $250,000 to $1,000.
Client:
Commercial real estate fund manager (Texas, confidential)
Asset:
12-unit multifamily property, Austin TX, appraised at $2.4M
Structure:
LLC membership interests tokenized under Regulation D 506(c)
Token standard:
ERC-1400 on Polygon PoS
Timeline:
18 weeks
Investment:
$85,000 development + $35,000 legal
Implementation
Parallel Syndication LLC incorporated in Delaware. LLC owns the property. Membership interests divided into 2,000 tokens at $1,000 face value. KYC via Parallel Markets (accredited investor verification). Token issuance via Securitize platform (transfer agent) integrated with our ERC-1400 contract.
Monthly rent distributions: property manager deposits collected rent → smart contract distributes to token holders → USDC transferred within 4 minutes of deposit.
Results
| Metric | Result |
|---|---|
| Investors onboarded | 182 |
| Capital raised | $2,000,000 |
| Average investment | $10,989 |
| Minimum investment | $1,000 |
| KYC completion rate | 91% of started |
| Time to first distribution | 31 days post-close |
| Distribution processing time | 4 minutes |
| First year yield (actual) | 6.8% |
Comparison to Traditional Real Estate Syndication
Traditional syndication: Minimum investment: $25,000 (our fund: $1,000). Investor documentation: 47-page PPM via email and DocuSign. Distribution processing: 5 business days (wire transfers). Investors typically reachable: 40–80 (our fund: 182). Tokenization expanded the investor universe by 2–4× while reducing minimum investment 25×.
