In Wichita, when you hear the word “fractional,” it’s usually associated with aviation.
The new Fractional Acquisitions, though, refers to real estate.
“We’re buying fractional interest in real estate partnerships,” Chance Carnes says of the company.
He and his father, John Carnes, along with partners from Walter Morris Cos. and Colby Capital in Overland Park, plan to invest in a variety of real estate through partial ownership.
Chance Carnes says when developers take on partners for new strip centers, warehouses or office complexes, it’s not always easy for the partners to later sell.
“Over time, there’s not a good exit strategy,” he says. “We’re creating an outlet for them.”
Carnes says the issue often is that there isn’t competition – that it’s only what the developer might pay for their shares.
“We’re creating a market for them,” he says. “It’s kind of a new little niche.”
The six partners in the firm have interests all over, Carnes says.
“We’re pretty well-funded.”
He says the partners are open-minded about where they’ll invest.
“We don’t have any real constraint on what we’ll look at,” he says. “There’s really no minimum and no maximum at this point.”
Carnes says the company is mainly interested in partnerships – not outright ownership.
“Like the name of our company says, just fractional interest,” he says.
“Just a piece of every little pie that we can get involved in.”