Portfolio

Industrial – Various Locations

This real estate fund has US-based sale-leasebacks or mortgages of property with cannabis tenants. The properties are a mix of retail, industrial, and offices.

  • $29 Million Investment
  • Strategy: Value Add
  • Risk-Return Profile: High
  • Projected Returns: 18.78% IRR

The fund has over 27 properties and generated over $650,000 in net operating income as of Q3 2022. It provides:

  • Monthly distributions
  • Higher projected yields
  • It has the potential to capture significant property value growth if cannabis is legalized in the US

Mixed Use – Minneapolis, MN

This is a five-building suburban tech project in three separate areas in the western suburbs of Minneapolis, MN. At the time of acquisition, the property was 80.7% leased. As of January 1, 2023, total occupancy was 89.58%.

  • $36.25 Million Investment
  • 316,752 Square Feet
  • Strategy: Value Add
  • Risk-Return Profile: Moderate
  • Projected Returns: 17.44% IRR

With a 3.3-year weighted average remaining lease term and significantly below market rents, the portfolio provides the opportunity to add value through organic rent growth and conversion of leases as they expire. Demand from tenants is high, with limited new supply coming online and occupancy for similar products in the mid-90% range. This will also provide the opportunity to add value and push growth through significant capital improvements and modernization.

Mixed Use – Chattanooga, TN

Located in Chattanooga’s rapidly growing historic Southside district, this property spans three buildings and was originally home to a coffee distributor built in 1910. A remodel in 2015 transformed the property into 63 apartments and 22,735 square feet of creative office and street-level retail. It’s one of the city’s most iconic mixed-use buildings. The residential units are 100% occupied and has 6-out-of-7 occupied retail units.

The building is centrally located to downtown and the University of Tennessee Chattanooga campus. It is also within walking distance of Warehouse Row and the Southside district’s exploding amenities.

  • $15.75 Million Investment
  • Strategy: Value Add
  • Risk-Return Profile: Moderate
  • Projected Returns: 18.2% IRR

Average multi-family properties in downtown Chattanooga saw an unprecedented 10% year-over-year rent growth in 2021. Since the renovation, units have stood out with ultra-high ceilings, open floor plans, and a blend of historic and modern interiors. Currently, the building lags behind its competitors by over $100 per square foot in rent, leaving an opportunity to raise rents. As rents continue to rise in the area, future opportunities exist to increase rents. The building’s 0% vacancy is further evidence of the unit availability scarcity and the opportunity to raise rates.

Multi-Family – Austin, TX

This new development will include 383 units on approximately 23.63 acres of land. This community directly borders the Pflugerville/Tech Ridge area, one of the fastest growing in the Austin metro area, given its popularity for corporate expansions and relocations.

  • $79.13 Million Investment
  • Strategy: Development
  • Risk-Return Profile: High
  • Projected Returns: 18% IRR

Apartments here have shown a 32.8% annualized rental growth based on the last three months. We anticipate the demand for new rentals in this area to increase steadily based on the following within a 5-mile radius:

  • Parmer, Austin’s premier corporate campus experience, has 1.8 million square feet either developed or currently under construction.
  • Dell’s Client Solutions Group campus has 1,800 employees, and GM’s IT Innovation Center has 2,200.
  • Samsung’s 640-acre campus has around 4,000 employees.
  • East Village, a new mixed-use development, broke ground across from the Samsung plant. This $1B development will be completed in the next seven years, creating 5,000 jobs.

Multi-Family – Various Locations

This fund originates and holds short-term (generally six months to two-plus years) senior mortgage loans secured by multi-family and commercial properties nationwide in the $1 million to $50+ million middle market.

  • Strategy: Loan Origination
  • Risk-Return Profile: Moderate
  • Projected Returns: 10% IRR

The targeted net returns of the fund are approximately 10% with monthly distributions. The fund’s purpose and objective are to provide principal protection while achieving non-correlated attractive returns.

We like this investment because debt provides you with low volatility returns, current income, and downside principal protection, cushioning against unforeseen macroeconomic events, changes in business plans, and events of default.

Industrial – Fremont, IN

The FedEx property consists of two pre-engineered steel buildings used as the main distribution building, the maintenance shop, and a small concrete pump house. The main distribution building is predominately an open warehousing area with administrative offices at the front, multiple break areas, and a trucker’s lounge.

  • $20 Million Investment
  • 118,526 Square Feet
  • Strategy: Income
  • Risk-Return Profile: Low
  • Projected Returns: 8% IRR

Reasons we like the FedEx property:

  • Transportation is a growing industry in Steuben County. With the intersection of I-69 and I-80/90 in the heart of the county, it’s an easy access point to major north-south and east-west transportation routes.
  • This building was built-to-suit FedEx.
  • It boasts a 15-year lease with 12.5 years of term remaining and 5% rent increases every five years.
  • This mission-critical location services four major metro markets.

Retail – Easthampton, MA

The CVS property was purchased subject to a lease with CVS, Inc. for the usage of a CVS Pharmacy.

  • $6.84 Million Investment
  • 8,775 Square Feet
  • Strategy: Income
  • Risk-Return Profile: Low
  • Projected Returns: 15% +/- (Actual)

The annual rental income is $314,089, subject to two rent escalations. The lease expires on January 31, 2033, with two five-year renewal options subject to two rental escalations.