Fund 4 Investment Progress
REAF 4 offers unique benefits and protections against the current challenges in the market, including:
- Strategic: Tried-and-true hedge against inflation.
- Stability: Regular cash flow once stabilized.
- Experience: Demonstrated track record in commercial and residential real estate investing.
- Diversification: Access to higher rates of return than simply investing in stocks/bonds. The target return for this fund is 25%+ higher than the historical average of the stock market.
- Growth: Long-term appreciation potential.
- Flexibility: Multiple exit strategies.
- Transparency: Invest in a specific subsection of real estate deals, not in a blind pool fund.
- Tax Efficient: Pass through tax benefits that are maximized through the ability to utilize cost segregation strategies and depreciation in general.
Fund 4 Investments
Previous Funds Returns Overview
rEAF 1
Measuring above 25% IRR
As of 3/31/24
REAF 2
Measuring above 10% IRR
As of 3/31/24
rEAF 3
Measuring above 35% IRR
As of 3/31/24
REAF 4
Targeting 16%
Wickersham Milford
The Partnership has entered into contract with KHOV to construct the 203 town home units for a fixed price (with fixed 1.5% annual inflator), with a schedule to deliver approximately 24 units per quarter. All units in the community will be rented and the project will operate similar to a traditional multi-family project. Based on a 5 year hold following stabilization, the transaction is expected to deliver a 18% gross internal rate of return (“IRR”) and 2.22x equity multiple. (16% net IRR and 1.97x net multiple.)
We have already opened up the first building (6 units) for leasing, we have 1 lease signed and 7 tours scheduled for the coming week. We anticipate the first move-ins to occur in late August and September. On the building construction front, we expect our first building to deliver in August, with the next two buildings shortly thereafter. We have a total of 7 townhome buildings in various stages of construction, and as one building delivers and we move residents in, we will begin construction on the next building. We have also completed the roadway stone and curb is now underway for Phase 2 (the final phase of the project), and we are scheduled to pave this phase later this month. This is notable, as we will have minimal site construction going on anywhere in the community when our first residents move in.
The primary purpose of this capital call is for the Fund’s preferred equity investment in a self-storage acquisition in Delaware. The Fund’s preferred equity position is at an 18% rate, with 10% paid current from an interest reserve and 8% accruing. The transaction is scheduled to close on March 27th. We will share a deal profile shortly after closing.
Carter Multi-Family Income Fund IV
Carter Multifamily acquires under-managed, established, income-producing multifamily assets in high-growth markets throughout the U.S. that offer value-add enhancement opportunities and meet the demands of a rapidly growing segment of renters. The fund pays 6.63% current distributions beginning immediately and offers a preferred return of 12.34%, then pays investors 80% of the profit above 12.34%.
Aphorio Carter Critical Infrastructure Fund, LLC
A Carter Funds company formed with the intention of investing in quality income-producing commercial digital and mission-critical infrastructure, data centers, switch sites and other technology related real estate. The Fund will focus primarily on wholesale, enterprise, colocation, edge and switch and cloud data center properties net leased to creditworthy tenants. The fund pays a 6.63% current return starting immediately and offers an 11.46% preferred return, then pays investors 70% of the profit above the 11.46%.
JLAM Real Estate Partners, LP
The first deal in this fund has been acquired and distributions have begun. The first deal is a Preferred Equity position behind 59% senior loan $8.0 million position (reducing to $6.0 million) 18% Interest Rate (10% paid current | 8% accured) 3-to-5-year hold period.