What is a Commingled Real Estate Fund (CREF)?

A Commingled Real Estate Fund (CREF) is best described as a privately placed pooled capital investment vehicle that combines contributions from multiple investors to invest collectively in real estate assets. This structure allows investors to access a diversified portfolio of real estate without needing to acquire or manage the properties individually.

The fundamental characteristic of a CREF is the pooling of capital from various investors, which provides advantages such as risk diversification and the ability to invest in larger or more attractive real estate deals than an individual investor might be able to pursue on their own. This collective investment vehicle often focuses on institutional investors, such as pension funds and endowments, but can occasionally include accredited individual investors as well.

The other options do not accurately reflect the nature of a CREF. For instance, a fund that invests only in commercial properties does not capture the full range of real estate types that a CREF may include, which can also encompass residential or mixed-use properties. Publicly traded funds, while part of the broader investment universe, are distinct from CREFs that are not traded on public exchanges. Lastly, while CREFs can include individual investors, they are primarily structured for institutional investors and larger funding sources, making option D less representative of what a CREF is designed