Jacobs Partners Real estate Fund (REF)'s primary investment objectives are:

To achieve capital growth in the value of stakeholders' investments over a short to long term.

​

The Jacobs Partners REF expects to make common equity investments where it will realize a predetermined percentage of profits upon sale.We choose our investment location carefully.  Most investments require some form of property improvements through rehab,  and/or ground up development, for value creation to occur. Jacobs Partners REF exercises a combination of these strategies to enhance the value of assets and realize a return for investors to pay cash distributions to stakeholders.

​

The REF aims to invest in assets that have intrinsic values that can be released by development. After expenses and debt service has been paid, common equity investments made by the REF will potentially receive distributions from the property.  The REF expect to make distributions to investors in the REF upon sale of the assets or on a quarterly basis after all expenses are covered. 

Jacobs Partners REF's investment strategy includes investing in:

Common equity and preferred equity in multifamily apartment buildings throughout New England, with the objective of generating rental income and maximizing the opportunity for future capital appreciation:
Common Equity:  Equity ownership in a piece of real estate that generally receives a preferred return and a share of the potential appreciation upon sale.
Preferred Equity: Equity ownership in a piece of real estate with a priority of payments on cash flow and upon liquidation, generally receives a fixed coupon that is higher than the properties distributable cash flow and in return does not share in any of the potential appreciation upon sale.
Established, well-positioned, apartment communities, including independent senior-living communities, with existing high occupancies and consistent rental revenue across market cycles, intended to provide a potential source of income to investors.
Multifamily properties that offer value-added opportunities with appropriate risk-adjusted returns and opportunity for value appreciation.
Under-managed assets in high-demand neighborhoods where the manager can invest additional capital in cosmetic improvements as part of the offering's "value-enhancement" strategy and reposition the properties to increase both average rental rates and resale value.

Jacobs Partners REF intends to hold:

At least 55% of the total value of our assets in common equity investments in which we are a controlling member of the ownership entity.
At least 70% of the total value of our assets in the types of assets described above. 
The remaining value of the REF may invest in "real estate-related assets" that are related to one or more underlying multifamily projects. These real estate-related assets may include assets, such as equity or preferred equity interests in companies whose primary business is to own and operate one or more specified multifamily projects.

​

Underwriting Guidelines

We will seek to create and maintain a portfolio of investments that generates a low volatility income stream, which may allow us to provide attractive and stable cash distributions to our stockholders. We expect that our portfolio of equity and preferred equity investments will be secured primarily by U.S. based collateral and diversified by property type and geographic location. Our primary investment characteristics include:

Preferred equity and joint venture equity investments of $0.5 million to $5 million;
Well positioned and established multifamily apartment communities, including independent senior living communities, with stable operating histories;
Historically high-occupancy rates and income levels;
Value-add and appreciation opportunities; and
Experienced partner-managers with an established track-record of expertise in their respective target markets.
Furthermore, we will:

Upon rigorous due diligence invest in properties requiring the new construction of a building;
Not invest in raw land as a standalone investment; 
Target investments in properties with existing revenue; and
Invest only in projects backed by established real estate companies or experienced real estate professionals.
We will generally target equity investments ranging from approximately $0.5 million to $5 million and will target leverage up to 75% of the fair market value or expected fair market value (for a value-add acquisition) of our assets; provided, however we may exceed this limit for certain temporary bridge financings. This is an overall target. Our borrowing on any individual investment may exceed 75% of its fair market value or expected fair market value as long as total portfolio leverage does not exceed 75%.

We plan to underwrite potential investments to a target gross property-level return objective of between 20% and 28%. There is no guarantee we will make investments that offer this return objective, and there can be no assurance that such returns can or will be achieved.

 Underwriting Process

This underwriting process focuses on four core aspects of a transaction:

The Property (property condition, financials, comparable properties and tenant mix).
The Location (population, employers, transportation).
The Real Estate Company / Sponsor of the project (background, credit, experience, references).
Third party reports and documents (property management company agreements, lender loan documents, appraisals, environmental, property condition reports and title reports).
Our underwriting process goes through several layers of credit review, starting with the deal submission, through an initial screening, full green light memo and final underwriting.  This process takes between 4-6 weeks and includes a thorough review of the file, supporting documents and collaboration with the real estate company and lender to realize a successful closing.  All investments are given final review  prior to closing and approved by the REF’s investment committee.

In addition, our team does site visits of every property to do market rental comparable surveys, review the property location, walk the property to determine the physical shape of the asset and its grounds, as well as assess desirability of the location for renters.

Real Estate Team

With some of the most impressive credentials in the industry, the Jacobs Partners team has spent time at some of the most prestigious real estate firms.

Deals sourced by the Real Estate team are a result of years in the field, building relationships with experienced real estate companies. Jacobs Partners has also received online deal submissions from active real estate companies across the country, with only a small select few making the grade for Jacobs Partner’s platform or REF offerings.  Jacobs Partners REF invests with real estate companies accomplished in their local markets, often times with hundreds of millions of assets under management. 

We rely upon the efforts of our accomplished real estate team to bring you best of class multifamily real estate investments, now available direct to you.

Distributions

REF's goal is to generate appreciation and  distributions upon completion of each project. Over the course of your investment, your distributions plus the change in Net Asset Value ("NAV") per share (either positive or negative), less any applicable redemption fees (see below), will produce your total return.

Distributions are expected to be paid after the sale of completed project.However, REF (the “Manager”) may declare other periodic distributions as circumstances dictate.
Distributions will be paid to shareholders as of the record dates selected by the Manager.
Any distributions made will be at the discretion of the Manager, and will be based upon, among other factors, its present and reasonably expected future cash flow, REF distribution requirements, and additional tax considerations.

You will receive an IRS Tax Form 1099 by January 31 of the following year.  Distributions may be treated as ordinary income, capital gains, and/or return of capital for tax purposes, each of which may be taxed at a different rate for different investors.
Because each investor’s tax considerations are different, it is recommended that you consult with your tax advisor.  

​

Estimated Use of Proceeds

​

                                                             Maximum Offering Amount             Percent Gross

Offering Proceeds                                           $500,000                                    100%             

Less: Offering Expenses  

Selling Commissions                                            $6,000                                       1.2%

Selling Commissions Funded by Sponsor       ($6,000)                                     (1.2%)

Organization and Offering Expenses              $15,000                                       3.0%

Amount Available for Investments                $485,000                                     97.0%

Less Acquisition Costs:           

Acquisition Fees                                                  $14,621                                        2.8%

Amount Invested in Assets                             $470,379                                       94.2%

​

Liquidity

​

Exit Strategy / Liquidity Transaction

The Company expects to provide investors with a liquidity transaction, or exit, at the point of disposition of assets or quarterly after a minimum of 3 months.

A liquidity transaction could consist of a sale of assets, a roll-off to maturity of all assets, a sale of REF, a listing of REF on an exchange, or any other similar transaction.

​

REF's Manager has the discretion to consider and execute a liquidity transaction at any time if it determines it is in the best interest of the Company and its investors.

​

​

Compensation Type                                             Amount of Compensation

Upfront Selling Commissions                                     0%

Organizational and Offering Costs                           Capped at 3%

Acquisition Fee - to Manager or affiliate                  Up to 3% of Purchase Price
Asset Management Fee – Manager                          1.25% Annualized, paid quarterly

Disposition Fee – to Manager or affiliate                 Up to 6% of Sale Price