THE OFFERING
Blue Phoenix Property
Development Fund
OFFERING
Up to $75,000,000 in Class A Interests
available to both
Accredited
Investors
Any natural person whose individual net worth, or joint net worth with that person's spouse, exceeds $1,000,000.
Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years.
AND
NON-Accredited
Investors
Non-Accredited investors are allowed to invest no more than 10% of the greater of their annual income or net worth.
We are offering up to 1,500,000 Class A Interests at $50.00 per interest. The minimum accepted from any subscriber will be $3,000.00.
HOW IT WORKS
The Blue Phoenix Property Development Fund has been formed to acquire, develop, reposition, hold, and exit income-producing real estate assets based on criteria that includes a positive cash flow at purchase, good location, and purchase price being less than replacement cost. Hover over the images below for a quick summary.
UNDERWRITING
Blue Phoenix finds the deals, bids out any value-add components, and develops a pro forma projection of the entire project. We negotiate the purchase price and structure financing options.
UNDERWRITING
INVESTORS
All investors, both accredited and non-accredited, become Schedule K-1 members effectively owning the real estate assets through the fund.
INVESTORS
MANAGEMENT
Blue Phoenix executes the plan— acquiring the asset, managing renovations, stabilizing the property, screening third party managers, and selling of the asset after our targets have been achieved.
MANAGEMENT
DISTRIBUTIONS
Class A Members shall receive a total of 65% of distributable cash, and will be distributed on a pro-rata basis in accordance with their Membership Interest Percentage.
Distributable cash includes all rents and proceeds from the sale of any asset, net of fees and expenses, paid out quarterly.
DISTRIBUTIONS
OUR TARGETS
IRR
9% to 22%
Core to Opportunistic
EQUITY MULTIPLE
1.4x to 2.5x
Core to Opportunistic
HOLD PERIOD
4 to 5 years
LEVERAGE
60% to 80%
Since we are not a single-asset syndication, returns will differ from property to property. Our efforts will mostly be focused on the acquisition and development of multifamily properties.
Class A/ Core Assets
Core assets present the least amount of risk in a fund. They are high quality, well-maintained, low-vacancy assets in desirable areas.
Core assets will be part of our fund to provide a stable and predictable cash flow stream.
Class B/Core-Plus/
Value-Add Assets
Core plus and value-add assets come with medium risk and medium returns. These assets may be underperforming but have upside potential that can be achieved through several repositioning strategies. These strategies may include property renovation, tenant realignment, or operational improvements, among others, all with the goal of increasing net operating income.
Most of our acquisitions will be in the Core Plus and value-add space where we can deliver higher returns to our investors by updating amenities, updating management, and creating properties where residents will love to call home.
Class C/ Opportunistic Assets
Opportunistic assets carry the highest risk and the highest potential returns. These opportunities are often ground-up developments or redevelopment of properties to a higher and better use.
We never back down from hard work. Our Managers have the expertise to rise to the challenge where others may not see value. After intensive underwriting, opportunistic assets will be part of our portfolio mix if it is beneficial to our Members.
