Fund Type: Preferred Equity
Property Type: Class B Office
Total Property Area: 35,000 sq. ft.
Value-Add Strategy: Rent Increase
Purchase Price: $4.55 million
Fund Size: $1.83 million
Acquisition Date: 2025
Target Annualized Return: 12%
Minimum Investment: $100,000
Current Status: Quarterly distributions in progress
Project Highlights:
✅ Acquired at a Low Price: Purchase Cap Rate 8.98%, $130/sq.ft. (well below replacement cost)
✅ Preferred Equity (12% Annual Return): Common equity of 29.3% subordinated, with sponsor guarantees for principal and interest
✅ Returns & Investment Term: 8% annual cash distribution (quarterly), plus 4% at exit (total 12% per year), 3–5 year investment horizon
✅ Fixed Loan Rate: 6.5% (5-year fixed)
✅ Fully Leased Property: Tenants include legal, medical, psychological counseling, real estate, and financial/insurance services—stable income stream
✅ Long-Term Tenants: 24 tenants with years of occupancy
✅ Strategic Location: Adjacent to Mountaintop Church (~2,000 congregants), with additional Sunday parking revenue
✅ Experienced Sponsor: Sponsor owns 6 similar projects in the area, with deep local market knowledge and proven management expertise
