DENVER—Baceline Investments, LLC, a boutique private equity real estate investment and management company with retail holdings throughout the Central US, has just launched Baceline High Yield Income Fund, LLC, the firm's first high yield fund.

"Pricing is still reasonable in the Midwest as opposed to the gateway cities on the coasts,"  David Puchi, managing partner for the Denver-based Baceline, tells GlobeSt.com. "We can still find value there. The institutional market has not discovered the middle of the country."

This fund has a minimum investment of $1 million and Baceline designed it for investors seeking a high level of regular income with the prospect of capital gain. The company plans to attract about $50 to $75 million in equity capital and will invest in neighborhood retail centers mostly located in secondary markets such as Omaha, Kansas City, Louisville, Des Moines, Puchi adds. Chicago-area properties will also be considered.

The targeted centers will have the typical line-up of neighborhood retail, including hair salons, liquor stores, restaurants, perhaps medical offices, and health clubs. Essentially,  "these are things that people are not buying on the Internet, but are using every day," Puchi says, and help keep producing revenue even as other retail gets undercut by the rise of e-commerce. "People are not buying six-packs of beer on the Internet."

"In a low interest rate and income environment, the new fund offers a compelling higher income strategy for large investors. By purchasing multi-tenant, well-located retail properties in favorably priced markets in the middle of the US, the High Yield Income Fund is employing a simple and time-tested real estate investment approach to producing income."