Revitate Cherry Tree Multifamily Fund I, LP
Revitate Cherry Tree Multifamily Fund I, LP (the “Fund”) seeks to invest in multifamily opportunities which will generate a strong risk-adjusted return over a 5 - 7 year hold period. The primary focus of the Fund is Midwest Workforce Housing and Sunbelt Value-Add Multifamily with a target purchase price range of $10 to $40+ million.
|Target Fund Size||$100,000,000|
|Average Equity per Project||$5,000,000-$10,000,000|
|Projected # of Investments||15-20|
|Fund Term||7 years + two 1-year extensions|
|Target Net IRR||12%+|
|Target Net MOIC||1.7x|
|Target Cash Yield||6%, distributed quarterly1|
1At the sole discretion of the General Partner. The distribution may contain return on capital.
multifamily units previously managed
equity capital previously invested
strategic multifamily renovations completed
Revitate Cherry Tree Multifamily Fund I Investment Strategies
Midwest Workforce Housing
Revitate Cherry Tree targets mismanaged workforce housing investment opportunities throughout the Midwest in growing secondary and tertiary markets that have consistent employment growth with positive net in-migration. A diminishing inventory backdrop, zero true competitive supply and increasing demand for affordable housing have made the asset class an attractive investment opportunity today. With the right operational focus and delivery of best-in-class community management services, reduced turnover rates and sustainable increases in revenues produce steady long-term cash flow and compelling tax-efficient returns for investors.
Sunbelt Value-Add Multifamily
Revitate Cherry Tree targets value-add multifamily assets with 100-200+ units in markets across the Sunbelt states that offer compelling growth profiles and attractive risk-adjusted returns. Revitate Cherry Tree is focused on well-located multifamily opportunities that require renovations to the interior units, common areas and amenities with the opportunity to create value through strategic asset repositioning. With the right market and executional strategy, these improvements provide for sustained rent increases.
Why Revitate Cherry Tree?
- Demonstrated track record asset managing 65,000+ multifamily units.
- Developed and acquired 22,000+ multifamily units representing $8B+ equity invested.
- Led $600M+ in strategic renovations and $1B+ in value created across 13,000 units.
- Invested into $1B+ of new developments through sister real estate platform, RevOZ Capital.
Compelling Asset Class
- Historically, multifamily is one of the best sources of strong cash flows and risk-adjusted returns among commercial real estate sectors.2
- Ability to raise and capture rents provides yield protection and a strong inflationary hedge.
- Demographic tailwinds and diminishing supply of attainable housing coupled with unwavering rental demand offers economic cycle resiliency.
2Source: CREIF Open End Core Equity Fund Index Historical Returns as of 2019
- Hybrid “Income & Growth” strategy combining Midwest workforce housing and Sunbelt value-add investment strategies.
- Focus on asset opportunities that require strategic repositioning and value-add through operational excellence.
- Targeted investment and operational approach.
Positive Social Impact3
- Active preservation and enhancement of workforce housing.
- Integration of on-site learning centers and other amenities to expand educational and community infrastructure.
- Proven track record of blending strong investor returns with broader economic and community benefits.
3While not and investment objective of the Fund, we believe that due to the type of investments made, the outcome of these investments will have a positive social impact outcome.
Pathways to Broader Social, Economic and Environmental Impact
Drawing from our years of experience in economic development, impact investing, philanthropy, and public policy, RevCT seeks to integrate creative strategies to generate broader social, economic, and community benefits via our investments.
While not and investment objective of the Fund, we believe that due to the type of investments made, the outcome of these investments will have a positive social impact outcome.
First and foremost, RevCT seeks to protect and enhance housing options for middle-income Americans at a time of increasing concerns about housing availability and affordability.
Second, RevCT will incorporate education-focused programming into our apartment communities in the form of learning centers designed to better serve young families and children with limited access to modern learning technology or other education tools.
Finally, RevCT seeks to build ties with a range of strategic partners in our portfolio markets to advance broader community goals for social, economic, and environmental impact.
Resilience of Multifamily Real Estate
Strong Cash Flows & Risk-Adjusted Returns
- Historically, one of the best risk-adjusted returns among commercial real estate sectors.4
- Balance of cash yield and upside through value-add appreciation.
- Resiliency through economic cycles and downside protection.
- Ability to raise and capture rents as leases turn, providing yield protection.
- Limited supply allows real estate to better hold its intrinsic value.
- Fixed debt payments become increasingly attractive in an inflationary environment.
Demographic Tailwinds & Limited Supply
- The surge and continued persistence of high housing demand driven by the millennial cohort.
- The shortage and diminishing supply of attainable housing forecasted for decades to come.
- Accelerated trends in job creation, population growth & other favorable demographics in Sunbelt and Midwest.