The Assets Classes

The Fund invests in 7-10 different real estate assets from three asset classes - all with a track record of continuing to perform in a recession. The managers have deep relationship with multiple best-in-class real estate operators across the US. The Fund will invest as an equity partner with these operators with the specific aim of protecting principal and generating quarterly cash flow.

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MOBILE HOME PARKS

Mobile home parks are counter-cyclical because they offer an affordable housing solution.

The U.S. is facing an affordable housing crisis that continues to grow.

Demand increases during economic downturns:

    • 20+ million people live in MHPs in the US accounting for 6.6% of all households

    • The US is shifting to lower paying jobs

    • An increasing number of retirees are downsizing or have low income

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SELF-STORAGE FACILITIES

Self-storage facilities are stable during a volatile market cycle. 

Self-storage REITS delivered a 5.1% total return through the 2008 financial crisis compared to general REITs generated a 38% loss.

Self-storage adapts quickly to the market:

    • Incentives may be offered to attract tenants

    • Operating expenses are very low compared to other types of real estate

    • Majority of leases are month-to-month so the rental price can be increased with 30 days notice

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AFFORDABLE APARTMENTS

Demand for affordable apartments often increases in a recession as many single-family tenants downsize to reduce their cost of living.

39 million people (1 in 8) in the US live in apartments - demand is at an all-time high. 

Value-add Affordable Multifamily focuses on:

    • Buildings/communities in good locations with some deferred maintenance and upside potential

    • Highly attractive and low cost debt is available compared to other assets