Real Estate Update
We have invested in a diversified real estate fund and we are excited about the return potential of each asset. Our real estate manager's strategy is to invest in quality assets with high return potential, as they believe this is the best way to build the fund’s value while also protecting our capital.
Our real estate manager's fund is comprised of 11 assets, 46% multifamily and 54% office, and is geographically diversified across 6 states and 8 cities. The net asset values of several of their assets have been adjusted upwards to reflect their true market value. The first 7 acquisitions have increased by an average of 20%, amounting to more than an $8 million increase in the portfolio’s value. Assets held at cost basis have either just been acquired or are in the early phases of transitioning through their business plan. The assets will be revalued on a quarterly basis to provide you with the most accurate snapshot of your investment’s performance.
We continue to see high quality opportunities in the marketplace, but are also seeing pricing on marketed assets well above value. Our manager's goal is always to balance the desire to put out capital quickly against their disciplined investment strategy, and they don’t believe there is ever a good time to overpay for deals. Our manager's efforts have been focused on sourcing off-market opportunities, a result of their commitment to building off-market deal sourcing networks and their local presence in each market. Our real estate manager's team is active in all of their markets and reviewing dozens of deals per month. They expect to deploy the remaining capital over the next 12-18 months and will provide as much advanced guidance as possible for future capital calls. As always, we will keep you apprised of the portfolio’s performance and our manager's progress in deploying the capital.