Stelliger Renewal Equity Fund

The Fund focuses on real estate investment opportunities in close-to-urban and urban areas in the United States, primarily in the middle market segment. The General Partner has a particular interest to invest in cities with a strong university or research center presence as we believe those cities often are job creation centers and less economically cyclical. We plan to achieve optimal energy efficiency and sustainability in invested properties within appropriate financial constraints. We intend to acquire properties at below market or replacement values, fully stabilize the properties, rehabilitate the properties into optimal performance buildings (e.g., through energy efficiency), and reposition them for sale at higher values. We also will evaluate select demand-driven development opportunities with clear user demand and financing sources.

Financial description

The Fund intends to invest primarily in real estate properties in the middle market segments in the United States with project size ranging up to $100 million. The Fund plans to target close-to-urban and urban markets based on fundamental economic metrics, detailed sub-market research, and local on-the-ground real estate operator network information. The Fund has a particular interest in areas with a strong university or research center presence. These locations have demonstrated a long term trend of economic and job growth due to the educated workforce and the intellectual capital that exist in these locations. Research shows that major educational and research centers tend to be more recession resistant, to be job creation centers, and also to attract people due to the stable skilled job supply.
The Fund plans to achieve its target fund IRR of 20%+ annually through value-add, opportunistic repositioning and select demand driven developments. The General Partner believes that the current real estate down cycle provides attractive investment opportunities with sizable returns that can be achieved using minimal leverage. The Fund plans to acquire properties on a cash basis during the initial acquisition phase and then utilizes debt leverage (with debt leverage averaging below 50%) as the properties are stabilized. The General Partner believes that quality returns can be obtained through thoughtful and careful value-added work without the need of high leverage.