A nice win for Adaptive Realty Fund 3

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Just completed the refinancing of the first of two properties in Adaptive Realty Fund 3, a pool of $2.41MM we raised approximately 18 months ago.

We were all in on this building for ~$2.3MM, of which $800k was a bridge loan and the rest was cash.

Because we’re good at what we do, the property is worth a heckuva lot more than $2.3MM… my guess is that it’s worth ~$3.2MM or something on the open market.

So, a bank was willing to give us a cash-out refinance loan for $2.1MM, of which $800k went to repay the bridge and the rest was cash back to the fund. Here’s the wire from Crown Escrow hitting the account:

Screen Shot 2016-07-01 at 10.29.28 AM

So, after reserving a bit for the completion of the other property in the fund, we were able to return ~$1.2MM to our investors.

That means the investors have back ~50% of their capital and the fund still owns both buildings.

We still have to complete construction and lease-up of the second building and then either refinance or sell it to complete our plan for this fund.

But phase 1 is done and it feels pretty amazing.

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