Investing for the future
Our family office invests with other family offices and high net worth individuals to generate solid returns while limiting risk to protect family assets.
We primarily invest in the development of medical office buildings that have been 100% preleased. These assets increase in value substantially over the initial 18 months period as the developer finishes the tenant improvements and moves the medical doctors into the medical building.
We have long term relationships with developers who have been developing world-class medical facilities for over 47-years and have a 97% average occupancy ratio.
This creates demand for short term capital to be added to developers capital account in order to qualify for construction debt. Upon completion, normally within 2-3 years, the asset value increases dramatically and then we arrange permanent debt. Upon receipt of the permanent debt, developers pay off the pref-equity invested by Developers Fund and the family offices who participated.
This provides full-return of capital plus interest and a portion of the equity and annual profits continue after repayment in full. Family investment partners can chose to receive the return of capital upon each refinance event or can roll the capital and/or the profit into the next development project using a tax efficient structure.
We enjoy long term relationships with our capital partners, family offices and high net worth individuals as we seek long term growth while generating above-market risk mitigated returns.
Our executive team continues to find great development partners and projects and conducts due diligence to find the most qualified projects worthy of investment consideration.
Members of our team have completed over five million square ft. of development and currently manage over one and half million square feet.
Investors tap into the deep industry knowledge, experience and previous track record of our senior team.
Invest in the right stack at the right time.
Investing in the right stack that matches your goals, risk tolerance and timing.
Debt Stack
Short term debt generally returns 5.5% - 8.5% APR when secured by real estate.
24-36 months.
Long term debt generally returns 4.5% to 6.5% APR when secured by real estate.
10 - 30 year term.
Long term ground leases generally return 3.5% to 5.5% APR when secured by land.
30 - 99 year term.
Equity Stack
Short term equity generally returns 6.5%-12.5% APR during construction, then adds an additional bonus once construction is completed and the property is sold or refinanced. Target IRR is 15% - 20% APR. 24-36 months.
Long term equity generally returns 5.5% - 8.5% APR during construction and stabilization, then adds an additional bonus when refinanced. Target IRR is generally 16% - 22% APR.
4 - 7 years.
Investing always involves some degree of risk. See all terms and conditions of the PPM and seek advice from your financial advisor before investing.
