Financial Advisor Partnerships

Alternative Investments in Tax-Advantaged Real Estate
Institutional-Grade Assets
Sustainable Tax Credits & Deductions
Transparent Reporting
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FEATURED IN

"The most innovative urban development and real estate companies for 2025"

"Wisconsin set to recieve world's largest mass timber tower"

"Neutral secures $133.3 Million in construction financing for the Edison in Milwaukee, WI"

"Reimagining sustainable living and democratized investing: Neutral vision for a thriving future"

Financial Advisor  Partnerships

Alternative Investments in Tax-Advantaged Real Estate

Institutional-Grade Assets
Sustainable Tax Credits & Deductions
Transparent Reporting

Empower Your Clients.
Elevate Your Practice.
Invest with Neutral.

Institutional-grade sustainable real estate investments designed for wealth management partners.
WHY REAL ESTATE?

Real Estate Belongs In Your Alternatives Portfolio

Real estate is a proven strategy for alternative investments. JP Morgan Private Bank's 2024 report shows family offices allocate 10-14.4% to real estate investments.
Diversification: Secure your clients' portfolios with non-cyclical, non-correlated multifamily investments that effectively hedge against stock and bond market volatility.
Tax Efficiency: Capitalize on tax credits, depreciation, and deductions
Alpha Returns: Target superior risk-adjusted returns.
Cash Flow: Benefit from regular distributions before project sale.
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FEATURED PROJECT
SSID #99978785

Neutral.Edison
A Flagship Opportunity

Located in Milwaukee, WI, Neutral.Edison is our flagship project focusing on sustainable construction and resident wellness. The project features 378 market-rate units and 7,200 square feet of retail space. Financing has been secured, currently under construction, and slated for opening in spring 2027.
Now available on Schwab via SSID/CUSIP: 99978785
Financing Secured: $133.3 million from Bank OZK and Pearlmark.
Equity Return:  2.19x
Proforma IRR: 17.9%
Preferred Return:  10%
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INVESTMENTS YOU CAN TRUST

Unmatched Transparency

Due Diligence Tours: Meet our team and tour our projects first hand.
Board Observation: Advisors with over $10 Million allocated in Neutral’s project get an observer seat on the board of directors.
Instant Updates: Get access to quarterly updates, construction live stream, third party studies.
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TAX BENEFITS

Tax Credits for All Investors

Our projects meet the most rigorous sustainability standards, including Passive House (Phius), Living Building Challenge (ILFI), LEED, and Energy Star.
Sustainability Tax Credits: Section 48, Section 45L, Section 179D help reduce capital gains and taxable income for your clients.
Strong Demand: Emphasis on resident well-being leads to rent premiums, reduced turnover, and strong project performance.
Operating Efficiency: Up to 60% reduction in energy costs, higher net operating income (NOI), and enhanced property valuation.
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Free Download:
Tax Benefits Memo

Learn about the sustainable tax credit and deductions that your clients can be eligible for when investing in the Neutral.Edison project. The memo is prepared by independent tax advisors at BDO USA.

WHY NEUTRAL

Personalized Onboarding

Our team is here to answer your questions and support you at every step.
Dedicated Account Manager: You will be assigned a specific person responsible for onboarding and paperwork preparation.
Email Templates: You will get access to pre-made emails that you can use to inform your clients.
Custom Reports: You will be able to request custom reports and memos to provide answers to your clients.
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MEET THE TEAM

Leadership

Neutral is a vertically integrated developer with over 20 full time team members across financial services, design, development, construction management,  technology, and marketing. The company is led by:
Matt Frazer: Co-Founder. Former owner & CEO of Tribute Technology, sold for over $1.2 Billion.
Nate Helbach: Co-Founder & CEO. Trained in real estate finance, started the company in 2020 based on his Harvard thesis and led it ever since.
Daniel Glaessl: Partner and Chief Product Officer. Former design leader at Foster+Partners, Gensler, NABR.
Meet the Team
Eric Heiting
Board Member

Founder of Central Wealth Management, LLC, Eric has over 20 years of experience as a CERTIFIED FINANCIAL PLANNER™, helping clients navigate financial complexities. As a board member at Neutral, he collaborates with advisors to integrate real estate into client portfolios and shapes Neutral’s investment strategy. To date, Eric has allocated over $20 million into Neutral’s projects.

Stephen McLeod
Director of Financial Advisor Relations

Stephen McLeod offers over 25 years of experience building strong partnerships with Registered Investment Advisors, helping them navigate market complexities and achieve sustainable growth. As Director of Financial Advisor Relations, Stephen will introduce advisors to Neutral's innovative real estate asset allocation solutions, designed to enhance portfolio diversification and deliver exceptional value.

RELIABLE EXECUTION

Experienced Partners

Neutral works with the nation's best engineers, general contractors, suppliers, financiers, and property managers. 

Financing

Bank OZK, Pearlmark, and First Business Bank have provided construction financing for our projects.

Construction

C.D. Smith is a premier general contractor headquartered in Wisconsin with nationwide track record.

Property Management

Hines is a leading nationwide property manager, managing 15,238 units across 28 Cities.

Ready to Expand Your Alternative Asset Allocation?

Eric Heiting
Learn how Neutral can set your practice apart.
Fill out the form below to schedule a meeting with our team.
Stephen McLeod

FAQs

Have any buildings sold at this price in Milwaukee? If not, why do they think they can sell at this price?

Milwaukee has yet to see a luxury high-rise building be traded. The four main comparables to The Edison in Milwaukee are Ascent, 7Seventy7, 333 Water, and The Couture. The Ascent is stabilized and recently refinanced at a debt basis of over $370K/Unit. 7Seventy7 is owned by Northwestern Mutual, who has stabilized the asset and plans to hold rather than sell. 333 Water and Couture were both delivered in the Spring of 2024 and are currently in lease-up, and both have set the top of market in terms of rental pricing.
Below is a list of recent sales comparables in Chicago:

Despite the availability of sales compos in Milwaukee, The Edison is poised to be a unique addition to Milwaukee's real estate market as the tallest mass-timber high-rise in the state, offering 378 luxury apartments along the riverfront and steps away from Fiserv Forum. This distinctive combination of sustainable construction, prime location, and luxury amenities positions The Edison to attract discerning tenants and investors, commanding premium pricing. Neutral's confidence in achieving these prices stems from the project's innovative design, sustainable features, and the growing demand for upscale, environmentally conscious living spaces in urban settings.

Does the company or builder have any other success stories on previous projects? The website looks like it just has projects in the works and no success stories? If so, what do those numbers look like?

Neutral, founded in 2020, is actively engaged in several projects, including two mass-timber mixed-use developments in downtown Madison, Wisconsin: Bakers Place, comprising 206 residential units, and 517 W Main St, featuring 33 residential units. Both of these projects are currently on schedule and on budget, and both will be completed this year in 2025.

Neutral did successfully exit one development project in the past in Monona, WI, The Bloom. Neutral closed on the land and successfully went through the entitlement process before selling the project to a family office to finish the development. Neutral and the project’s investors made approximately a 3x multiple on their investment over the short investment period.

C.D. Smith, our General Contractor, has a multitude of experience in constructing high-rise and mass timber developments in Wisconsin and across the Midwest. For example, C.D. Smith was the general contractor of Ascent, the world’s tallest mass timber building, with 259 residential units in Downtown Milwaukee. C.D. Smith is also the general contractor for our two other mass timber developments, Bakers Place and 517 W Main, located in Madison, WI and slated to open this year. Other notable projects of C.D. Smith include 7Seventy7 in Milwaukee, WI and EO Yards in Madison, WI, both of which are luxury high-rise development projects.

The Edison is by the water – how is this beneficial to the project and what are the pros and cons?

The Edison's riverfront location at 1005 N. Edison St. offers several advantages:

Pros:
- Scenic Views: Residents can enjoy picturesque views of the Milwaukee River, enhancing the property's appeal.
- Milwaukee Riverwalk: The Edison is along the Milwaukee Riverwalk, which offers connectivity and commuting access to the major F&B hubs in Milwaukee, such as the Deer District and the Historic Third Ward. It also allows for activities such as walking, jogging, and boating, promoting an active lifestyle in the River.
- Premium Pricing: Waterfront properties often command higher rental rates due to their desirable location.

Cons:
- Environmental Regulations: Development near water bodies require adherence to strict environmental guidelines, slightly increasing project complexity and costs. These have been worked through with the City of Milwaukee and the WDNR.
- Flood Risk: Proximity to the river necessitates flood prevention and mitigation measures to protect the property. The Federal Emergency Management Agency (FEMA) Flood Map Service Center allows you to enter the address into their search tool to access the relevant Flood Insurance Rate Map (FIRM) to identify the property's flood zone classification. The designation for the project site shows no risk of flooding. In addition, The City of Milwaukee is providing funds to the project for renovating the Riverwalk to mitigate any future risks and for aesthetic purposes.

Overall, the benefits of a waterfront location enhances the project's attractiveness and value, provided that environmental and safety considerations will be effectively managed during the development period. The Riverwalk access provides a scenic 3.1-mile pedestrian-friendly walkway along the Milwaukee River, featuring restaurants, public art, recreational spaces, and docking stations, enhancing the value of The Edison.

Who owns the Sr. Debt?

The senior debt for The Edison is provided by Bank OZK for $98M. Pearlmark is providing the mezzanine debt, which collectively secured $133.3 million in construction financing for the development.

How much does the largest investor own?

The equity raised to date is primarily from retail and high-net worth individuals, with a small portion coming from project team members such as C.D. Smith, the General Contractor. Of the retail investors, the single largest investor is a partner of Neutral, who has invested approximately 30% of the total equity.

What happens to my clients' investments if the project fails? How much of their investment is at risk?

In real estate developments, the capital stack hierarchy determines the order of repayment in the event of a project failure:

- Senior Debt Lender: Bank OZK would be repaid first.
- Mezzanine Debt Lender: Pearlmark is next in line after senior debt is settled.
- Equity Investors: The equity positions are last in line to be repaid, therefore bearing the highest risk while yielding the highest return.

As an equity investor, there is always a risk of partial or total capital loss if the project's proceeds are insufficient after satisfying debt obligations. This is, however, highly unlikely due to the conservative leverage on the project. The development has a cost value of $200M, with only $133M of debt to repay before equity investors will begin to see returns.

What are the downsides and negatives that could go wrong with the project that I should be aware of?

- Potential risks associated with The Edison project include:
- Construction Delays or Cost Overruns: Unexpected issues could lead to increased costs or extended timelines.
- Market Demand Fluctuations: Changes in the local real estate market could affect rental rates and occupancy levels.
- Regulatory Changes: New laws or regulations could impact project viability or profitability.
- Environmental Concerns: Proximity to the river may pose environmental challenges or require additional compliance measures. We advise that our investors conduct comprehensive due diligence and consider these factors when evaluating the project.

Who would this building be sold to at what price will it need to be sold for these numbers to all work out?

Upon completion and stabilization, The Edison will likely be sold to institutional investors such as real estate investment trusts (REITs), pension funds, or private equity funds. Neutral is currently projecting the building to sell at a 5.00% exit cap rate, which is on par with comparable sales in other Midwest markets. At this cap rate, the sale price would be $274M, meaning that $74M would be the profits above the development cost. With the total cost being $200M, the project would need to sell at that level for repayments to break even.