Investing in Value-Add and Opportunistic Real Estate
Our Investment Objectives
Maximize cash distributions to investors
Preserve, protect, and return investors capital contributions
Realize growth in the value of the Fund’s assets
Achieve an average annual unlevered yield on cost of 8.0%+
Target Investments
The Fund expects to target multitenant retail shopping centers in cities larger than 100,000 people in the Midwestern United States. The Fund intends to focus on properties that have strong underlying fundamentals, in that they are located on or near major traffic arteries, in areas with healthy household incomes in an appropriate vicinity, and in areas poised for economic growth or known for strong economic activity. We anticipate the properties in which the Fund invests will typically be existing, operating, and income producing shopping centers between $3.0M and $10.0M in purchase price with opportunities to add value through leasing, management, and/or development.
The Fund intends to focus on properties with service-oriented tenants that are resistant to the threats of ecommerce and have historically withstood economic downturns rather than on properties that rely heavily on larger format stores such as clothing stores and toy stores.
Long Term Value + Passive Income
The Fund intends to invest in income producing properties to maximize long term value and cash flow for the Fund’s Members. We anticipate that, in addition to producing passive income, the Fund’s properties will increase in value over time, creating more opportunities for recapitalization. Except in certain circumstances determined appropriate by the Manager, the Fund will not reinvest cash proceeds from sales of properties such that as properties are sold, the Manager will establish reasonable reserves and distribute the remaining cash to the Fund’s Members.
Fund Establishment
The Fund was established to seek out value-add and opportunistic real estate deals and take advantage of the tightening credit market that has resulted from the trend of rising interest rates in 2022. The Fund is positioned to acquire distressed and undervalued assets in the face of what we anticipate to be a recessionary economic environment. The Fund intends to evaluate, acquire, hold, improve, develop, rent, and sell primarily income producing properties, including but not limited to, retail shopping centers. The Fund intends to acquire properties using all cash and then hold them for an indefinite period with the goal of strategically capitalizing on attractive financing terms should interest rates for commercial properties become attractive and accretive to the value of the Fund.