During this transitional stage of the real estate cycle, BREF Fund II, LLC ("Fund II") will focus on investments in Black communities that display favorable rental markets, employment, and population growth.
Fund II is a social impact private equity real estate fund that will invest up to one hundred thousand dollars ($100,000) with Black commercial real estate developers (i.e.: joint-venture partners) per small-to-midsize residential and multi-family properties (new construction, gut renovations, and fix and flip).
Fund II being better capitalized than many local buyers will be able to pass on to its Black joint-venture partners, the benefits of providing sellers with greater certainty of closing, in a shorter period of time.
Fund II's investment objectives are to invest in assets that will enable it to:
- generate attractive risk-adjusted returns through a combination of cash distributions, NOI growth, and capital appreciation over an expected five-year hold period;
- preserve, protect, and return invested capital;
- create value for investors and the community through socially responsible investment management practices that include affordable housing (Section 8 Vouchers and Low-Income Housing Tax Credits) and create jobs for local Black residents.
Fund II will REQUIRE its Black joint-venture partners to use its investment capital to hire Black: Lawyers, real estate brokers, mortgage bankers, architects, electricians, plumbers, construction contractors, etc.