Can Real Estate Debt Fund Have Passthrough Depreciation?

[Mark S.]

Came across an interesting syndication opportunity recently related to car washes.  The fund is structured and labeled as a Debt Fund (not equity), the return is capped (at 1.75X multiple), yet they seem to be promoting all the wonderful accelerated depreciation benefits of car washes.  

After speaking with my CPA at a high level (we were discussing other things and this came up towards end of conversation), it appears that real estate DEBT funds generally do NOT pass through depreciation and the like, and that returns from this investment would likely be taxable at ordinary income.

Anyone else ever run into this?  Am I missing something?  

At first glance, the opportunity seemed interesting but if there's no depreciation passthrough on a debt fund, then it's not nearly as enticing.