MacKenzie Realty Capital, Inc. (MKZR) completed a spin‑off of its multi‑family assets and a development project into a newly formed entity, MacKenzie Apartment Communities, Inc. (MAC). The transfer became effective on January 1 2026, and the announcement was issued on January 8 2026. MAC now owns four stabilized multi‑family properties and the Aurora at Green Valley development, a 72‑unit community that has not yet been appraised.
The four stabilized properties were appraised on March 31 2025, and MAC’s board set an initial net asset value of $18.10 per share, with a potential range of $16.46 to $19.95 per share based on those appraisals. Aurora at Green Valley’s value is derived from construction costs, totaling $28.63 million, including land purchase and contributed value, as disclosed in the company’s SEC filing.
CEO Robert Dixon explained that the spin‑off provides MKZR with “new options” to raise capital specifically for multi‑family assets, merge MAC with another multi‑family REIT, or distribute MAC shares to MKZR shareholders on a 1:1 basis. The move is intended to clean up MKZR’s balance sheet and give the company greater flexibility to pursue growth in the multi‑family market while allowing MKZR to focus on its core office and mixed‑use portfolio. Investors reacted positively, with the stock rising sharply after the announcement, reflecting confidence that separating the multi‑family assets will unlock intrinsic value.
Prior to the spin‑off, MKZR had been grappling with widening losses and a suspended dividend. The company reported a net loss of $6.1 million for Q3 FY 2025, up from a $2.9 million loss in the same quarter of 2024, and had halted its quarterly cash dividend in May 2025 to strengthen its balance sheet. In December 2025, MKZR initiated a strategic review of its multi‑family portfolio, arguing that the net asset value of those holdings far exceeded the company’s market capitalization. The spin‑off is the first concrete step to address that valuation gap.
The creation of MAC positions the company to pursue targeted growth in the multi‑family sector, potentially through additional capital raises or a merger with a complementary REIT. For MKZR, the spin‑off reduces debt exposure and frees up capital for its office and mixed‑use assets. Analysts noted that the clean balance sheet and focused strategy could improve MKZR’s credit profile and long‑term valuation, while the market’s positive reaction underscores investor appetite for a dedicated multi‑family platform.
Overall, the spin‑off represents a significant strategic pivot for MacKenzie Realty Capital, aligning its asset base with market demand and setting the stage for future value creation in the multi‑family real‑estate market.
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