Smartland Strategic Real Estate Fund II

Opportunity description

Fund Economics

• Target Fund Size: $250,000,000
• Assets to Purchase up to: $750,000,000
• Term: Five (5) years following the Initial Closing Date with two consecutive two-and-a-half (2.5) year extensions at the Manager’s discretion
• Investment Period: The fund will remain open and can accept new investments up to four (4) years after the Initial Closing Date

Projected Returns

• Investor: Limited Partners: 8% Annualized Preferred Return
  • Minimum Investment: $1,000,000.00
  • Target Asset-Level IRR: 14%-18%
  • Equity Split Hurdles:
    • 80/20 until LP Members achieve a 16% IRR
    • 70/30 after LP Members achieve a 16% IRR

The Smartland Strategic Real Estate Fund II will primarily acquire multifamily real estate assets. The fund will focus on acquiring asset in the Southeast and Midwest with a major focus in Florida and Ohio with the opportunity to push value through the implementation of professional management practices and the execution of strategic capital expenditures that will culminate in strong value creation. The Fund does not intend to invest more than 30% of the capital commitments in any single investment. The Company intends to identify potential investments to a target asset-level internal rate of return in the range of 14%-18%. This objective is based on financial modeling using assumptions and targets that the Manager believes to be reasonable. An investment in the Company is inherently speculative, and there can be no promise or guarantee the Company will achieve its objective or that the Company will not experience losses, which could be substantial.

The Fund offers investors diversity being able to acquire multiple asset types and has a target raise of up to $250,000,000. The Fund will acquire multifamily, single-family, and industrial properties and seek to increase NOI by increasing rents through bringing smart technology and modernized units through strategic interior and exterior renovations, rebranding of the properties, and hands-on management. Each asset will likely have a two-phase holding period starting with an 18-month reposition followed by 3-7.5 years of stabilized operations. The Sponsor has a competitive advantage by having in-house acquisition, project management, property management, investor relations, and construction teams.

Key deal points

• Target Properties:
  • Multifamily Communities
    • Core
    • Core+
    • Value-Add
• Value-Add and Nonperforming Notes
• Convert distressed multifamily properties into gorgeous B’s (little to no comps with B’s which increases the value between C & A properties)
• Purchase and renovate distressed assets
• Multifamily Unit and community amenities-focused

Updates

Fund Administrator monitoring occurs on a quarterly and/or annual basis. The Fund Administrator usually takes about 15-25 days to process the information at the end of each quarter. Updates will be send by email from the Fund Administrator.