Mackenzie Realty Capital Inc Dossier
Qualitative Analysis
Business overview
MacKenzie Realty Capital, Inc. (NASDAQ: MKZR) is a West Coast-focused Real Estate Investment Trust (REIT) incorporated in Maryland in 2012. The company was originally formed to generate current income and capital appreciation through real estate-related investments, primarily in debt and equity real estate-related securities. However, as of December 31, 2020, MacKenzie withdrew its election to be regulated as a Business Development Company (BDC) under the Investment Company Act of 1940. This strategic shift allowed the company to expand its investment pool to include physical real estate assets. MacKenzie's core strategy is to invest at least 80% of its total assets in real property, targeting a portfolio split of approximately 50% multifamily apartment communities and 50% boutique Class A office properties, while allocating up to 20% of its assets to illiquid real estate securities purchased at deep discounts to their Net Asset Value (NAV).
Research as of 20 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
Contributed all multifamily assets and development properties to a newly created, stand-alone subsidiary named MacKenzie Apartment Communities, Inc. (MAC) to optimize the portfolio structure and create flexible strategic options.
Expected impact: Provides the company with multiple strategic options, including raising dedicated capital for multifamily assets, merging MAC with another multifamily REIT, or spinning off MAC shares to MKZR shareholders on a 1:1 basis.
Prioritizing deleveraging and portfolio optimization over aggressive new asset purchases to reduce interest expenses and improve overall portfolio yield.
Expected impact: Reduction of non-operating interest expenses, improvement of overall portfolio yield, and potential selective dispositions of non-core, lower-yielding assets in secondary markets.
Leveraging short-term debt to acquire discounted real estate securities in advance of scheduled mergers or redemptions.
Expected impact: Acquired 219,959.104 shares of CNL Healthcare Properties, Inc. for $1,000,814 in advance of its merger with Sonida Senior Living (SNDA), generating a profit of $523,458 upon merger close and enabling full repayment of the Streeterville loan.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Recent Acquisitions
Acquired 219,959.104 shares of CNL Healthcare Properties, Inc. in advance of its scheduled merger with Sonida Senior Living (SNDA) to capture arbitrage profits.
Financial impact: Generated a total of $1,563,864 in cash and shares upon merger close, resulting in a net profit of $523,458 and allowing the company to fully pay down the associated $1 million loan from Streeterville Capital.