Invest in Housing the Bay Area’s AI Boom

The offering size is $35 million with a minimum investment of $200,000. The Company reserves the right to accept investments below the stated minimum. Full details are available with the delivery of a Private Placement Memorandum.

The fund targets a 17.3% target investor IRR net of fees, a 1.80x LP equity multiple, and target cash distributions averaging 3 to 5% per year. On a $1 million investment over a five-year hold, that models to roughly $190,000 in distributions before exit and $1.80 million in total LP distributions. For more detail on the projections and how these returns were calculated, ask for access to our complete data room including property-specific cash flow models.

These are management projections and are not guaranteed.

Target liquidity is four to five years, through one of three paths: a portfolio sale to an institutional buyer, a REIT, or a recapitalization.

Investors’ original capital is returned first. An 8.0% annual preferred return on invested capital is paid next. Profits thereafter are split 80% to investors and 20% to Madison Park as manager. 

Preferred returns describe distribution priority, are not guaranteed, and are not projected performance.

Acquisition fee: none. Asset management fee: 0.75% of gross asset value. Property management fee: market rate, not to exceed 5% of revenue. Development fee: 3.5% of construction costs, applicable only to ground-up development.

Yes, issued 1:1 per dollar invested for the first $10 million invested. Warrants will be issued with a strike price 10% above the current share price (for a price of $21.20) and may be exercised up to three years after the closing of the offering. Current projections estimate share values to be ~$30 at the exercise deadline.

$19.27 per unit.

Yes. The sponsor is currently the largest investor in the fund, holding 16.9% of outstanding shares.

The fund targets distributing 60 to 70% of net operating cash flows and retaining the remainder for reserves and reinvestment. The past 6 years have reminded us of the importance of strong property-level cash reserves, and we believe this to be the responsible choice for our investors.

None of the nine key fund assets are subject to local rent control.

The offering is open to accredited investors only. The offering can accept IRA, pension, and 401(k) capital.

We have a custom offering available for 1031 exchange investors, which allows investment into the strategy while meeting key 1031 exchange compliance requirements. Please get in touch to learn more.

When all units are sold or by March 31, 2027, whichever is earlier.