INVESTMENT CRITERIA

Investment Criteria

Specializing in Class B Multifamily Real Estate Investments

CapFund is a fast growing, real estate investment company that targets investments in light value add and core plus Class B multifamily properties located in Southern California, Texas, and Nashville. CapFund also provides experienced multifamily operators with a small balance preferred equity program in several MSAs across the western United States.

We are building a company that is digitally driven and resident focused. Our tenants are typically younger millennial residents with steady jobs and good credit scores and desire locations near essential services and jobs. Our goal is to consolidate this segment over the next five years to create a sizable portfolio of properties that will be valuable to its owners and investors.

We think long-term, use modest leverage, and consistently reinvest capital into our properties to retain our tenants.

"We think long-term, use modest leverage, and consistently reinvest capital into our properties to retain our tenants."

Multifamily

Acquisition Criteria

Property & Deal Size

Deal Size: $3,000,000 - $40,000,000
Leverage: 0% – 55%
Holding Period: 3-10 years
Asset Type & Class: Multifamily - Class B
Risk Profile: Light Value Add and Core Plus

Markets

Southern California:

Silver Lake, Echo Park, Virgil Village, Atwater Village, Los Feliz, Eagle Rock, Highland Park, Glendale, Burbank, and Surrounding Submarkets

Texas:

Dallas Fort-Worth, San Antonio, and Austin

Tennessee:

Nashville

Locational & Property Amenities

Property Amenities:

Strong nearby retail, grocery stores, and essential services
High walkability with low crime
Accessible to employment centers and transit centers

Property Amenities:

Strong property security
Flexible unit configurations
Pet friendly
Minimum one parking space per unit preferred

Multifamily Small Balance

Preferred Equity Program

Program & Deal Size

Deal Size: $2,000,000 - $ 8,000,000
Maximum Advance Rate: 75% advance rate (first mortgage plus preferred equity position)
Term: 3 – 10 years
Asset Type & Class: Multifamily - Class A & B
Risk Profile: Value Add, Light Value Add, and Core Plus
Pricing: 12%-14% fixed rate, payable monthly, pay and accrual options available

Markets

California: Los Angeles MSA, San Francisco MSA, San Diego MSA
Texas: Dallas Fort-Worth MSA, San Antonio MSA, Austin MSA, Houston MSA
Arizona: Phoenix MSA
Washington: Seattle MSA
Oregon: Portland MSA
Utah: Salt Lake City MSA
Colorado: Denver MSA

Program Terms & Sponsor Requirements

Sponsor: Minimum net worth and liquidity requirements, no bankruptcy history, and extensive multifamily operating history
Fees: 2% up front origination fee, extension fees may apply
Security: Liquidity preference on sale or refinance; no second mortgage, UCC filing, or first mortgage lender approvals required
Recourse: Non-recourse subject to standard general partner default provisions
Due Diligence Items: Capped legal fees, property condition report, appraisal, survey, title, and standard due diligence Items required by the first mortgage lender
Ongoing Reporting: Monthly operating statements required