| Asset Class: | Multifamily Core+/Value add |
| Offering Size: | $40MM - $80MM |
| Minimum Commitment: | $100K - with incentives at $250k, $500K, and $1 Million |
| Initial Deposit: | 10% of Commitment |
| Preferred Return: | Class A: 9% annually Class B: 7% annually |
| Fund Term: | 7 - 8 years |
| Target Return: | Class A: 9% Annual Average Class B: 14% - 17%+ Annual Average |
100% profitable track record with close to $1 Billion in Multifamily Transactions and decades of real estate and portfolio management experience.
Proven performance
We are multifamily acquisitions and asset management specialists with a 100% profitable multifamily investment track record and $268 million of equity deployed across close to $1 Billion in transaction value. Across our acquisitions and asset management group, our managers, principals, and team have over $5.5 billion in combined commercial real estate transactions with over $4.4 billion in multifamily portfolio asset management and disposition experience.2
Potential benefits:
Income
Primarily derived from net distributable income from the properties held in the Fund.
Diversification
The Fund’s portfolio will be diversified across several multifamily assets within various attractive markets within the U.S.
Equity Growth
We intend to select investments that provide the opportunity to achieve long-term capital appreciation through value add and operational improvement initiatives.3
Tax Advantages
The Fund will take advantage of available tax structuring to create opportunities for income tax deferral and long-term tax reduction for its investors.
Low Correlation
The Fund invests in direct multifamily investments that typically have lower correlation to the broader equity and fixed income markets.
Direct Fractional Real Estate
Investors have the potential to receive direct flow-through benefits from assets held by the Fund. Quarterly reporting will provide detailed information on the performance of all assets throughout the Fund term.
Our investment strategy
37th Parallel Fund II (“Fund”) is a diversified multifamily investment. The purpose of the Fund is to acquire, enhance value, and dispose of multiple multifamily real estate investments purchased below replacement costs in attractive markets with operational challenges, capital needs, and value add potential.
The Fund will focus on 13 markets based on attractive demographic factors, strong tenant demand, supply constraints, and exit liquidity.4
1 Members are entitled to receive a preferred return of 8% cumulative non-compounded annual return on their unreturned Capital Contributions. Distributions of cash flow are not guaranteed, subject to available cash and will likely be lower than the preferred return in the early stages of the project. Any accrued and unpaid preferred return (if any) will be paid prior to return of capital and any promote to the sponsor. See PPM for more information. Manager’s expectations are forward looking statements and may not be realized. The Preferred Return is not guaranteed and is subject to available cash flow. Diversification does not guarantee profits or protect against losses.
2 37th Parallel assets shown are single asset investments and not available in the Fund.
3 This is an actively managed private real estate fund. There is no guarantee that any investment (or this investment) will achieve its objectives, goals, generate positive returns, or avoid losses.
4 37th Parallel’s prior performance is no assurance of future returns. Investors in new projects will have no interest in prior properties sponsored by 37th Parallel.