Sunbelt Fund I Updates > Performance and Cash Reserve Update
Consistent Occupancy Growth and Steady Performance Year to Date
Please click here for our Sunbelt Fund I June 2020 Asset Management Report. June was another strong month, with the fund cap-rate, physical occupancy, and cash-on-cash all steadily continuing to increase.
We have maintained a cash reserve of more than 15% of deployed equity (see below) since pre-covid to weather any eventuality, and despite this the portfolio cash-on-cash has remained high. Given strong operational performance through the crisis thus far, we expect to deploy a large proportion of this cash reserve for our next purchase in August to further boost cash-on-cash returns.
We have maintained a cash reserve of more than 15% of deployed equity (see below) since pre-covid to weather any eventuality, and despite this the portfolio cash-on-cash has remained high. Given strong operational performance through the crisis thus far, we expect to deploy a large proportion of this cash reserve for our next purchase in August to further boost cash-on-cash returns.
Sizable 15%+ Fund Level Cash Reserves Taken Pre-COVID-19
Workforce multifamily real estate asset prices have remained consistent in the Southeast despite the pandemic. In our opinion, this results from rallying interest rates and the outperformance of the sub-sector relative to most other real estate asset classes, driving capital to our sector.
The Sunbelt origination team are all working hard to leverage our broad local network and reputation as closers to put strong deals under contract to finish off the fund and thus complete all remaining capital calls. We capital call on a first-come, first-serve basis as funds are needed for acquisitions based on the order in which reservations are received in our investor portal.
We continue to be extremely selective. Since the onslaught of Covid-19, we are reviewing 5-10 deals in our sector/geography a week, underwriting the most interesting 2-5, and visiting 1 property every two weeks on average with deal flow down relative to pre-pandemic.
The Sunbelt origination team are all working hard to leverage our broad local network and reputation as closers to put strong deals under contract to finish off the fund and thus complete all remaining capital calls. We capital call on a first-come, first-serve basis as funds are needed for acquisitions based on the order in which reservations are received in our investor portal.
We continue to be extremely selective. Since the onslaught of Covid-19, we are reviewing 5-10 deals in our sector/geography a week, underwriting the most interesting 2-5, and visiting 1 property every two weeks on average with deal flow down relative to pre-pandemic.
