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Launch of Sunbelt
​Multifamily Fund II

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Sunbelt Fund II Updates > Launch of Sunbelt Multifamily Fund II
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At Ballast Rock Capital we create high-income generating, tax-shielded, diversified real estate funds with a positive social impact.  We differentiate ourselves with high performance, frequent communication, detailed reporting, and ready access to the management team.

With our on-the-ground deal teams across the Southeast and in-house property management, we have the right experience to acquire, manage and oversee value-add projects across our portfolio of workforce multifamily real estate assets.  The principals invest our own capital alongside our investors, aligning our interests, and delivering safe, clean, and affordable homes for residents in our communities.

​Given the success of Sunbelt Fund I (“SB1”) the Ballast Rock team are proud to announce the launch of Sunbelt Multifamily Fund II LP (“SB2”).  We have proven we are an experienced team, with a successful strategy, in a growing geography, and we look forward to sharing in the success of SB2. Download SB2 Presentation
SB2 Presentation

What are the basics of SB2?

SB2 will be a $50mm equity raise to acquire an expected 10-12 deals ($120-135mm of assets) during 2021 and 2022. We already have multiple deals under contract to seed this fund (Sunbelt Fund II target pro forma).

What best positions the Ballast Rock SB2 strategy for success?

The outsized demand/supply mismatch in the workforce housing sector and the demographic growth of the Southeast allow us to offer particularly attractive risk adjusted returns.  Our quantitative and qualitative acquisition criteria have been honed over years of investment experience in the sector. Our unparalleled deal access and the sheer volume of deals we underwrite enables us to filter for the best available opportunities in our markets that fit our investment thesis.  Our in-house property management enables us to have the control needed to consistently deliver on our underwriting

Why is the Ballast Rock SB2 strategy right for passive real estate investors focused on immediate income?

​SB2 will acquire income generating workforce multifamily assets, implement value-add projects to increase revenue through investment, and professionalize the operations and management to stabilize costs.  We do the hard work so our investors don’t have to.  We pay dividends that start to accrue from the day we deploy investors’ capital.  Dividends are paid on a quarterly basis - on the 10th of the month following quarter end - and a bonus coupon is paid along with the 4th quarter payment if there is excess cash-flow from income in a given year.

Why Now?

​Despite the continued and relatively consistent rally in the workforce multifamily sector over the past 30-years, we believe there is more rally ahead.  Both rallying interest rates and the strength of performance in the workforce multifamily sector during the Covid-19 crisis (and particularly when compared to other real estate sectors) have led to a flood of fresh capital into the sector, with plenty more to come for the foreseeable future.  Despite this, net interest margins ("NIM") – or the difference between the unlevered yield of an asset and the cost of borrowing – are at their widest in 30yrs (see graph below), making now an extremely attractive time to be acquiring multifamily with plenty of capacity for further rally as NIM returns to the historic mean.
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What gives the Ballast Rock team confidence they can deliver performance similar to SB1 in a second fund despite changing market conditions?

The Ballast Rock team have lowered our promote fee structure significantly in SB2 compared to SB1 as the market in the Southeast has continued to rally, enabling us to confidently offer consistent return targets for investors across the two funds (SB1 & SB2 Summary Comparison)

How can I learn more and make a reservation to invest?

​Please log into your investor portal to access SB2 legal documentation and to make a reservation that gets you in the first-come, first-serve capital deployment queue.  Reservations taken at launch are likely to be capital called in Q2/Q3.  As we take more reservations that timeline will change.

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The information contained on the Ballastrock.com web site has been prepared by Ballast Rock Holdings LLC (“Ballast Rock”) without reference to any particular user’s investment requirements or financial situation. Potential investors are encouraged to consult with professional tax, legal, and financial advisors before making any investment into a private offering of securities.  An investment in private securities would be speculative and would involve a high degree of risk. Investors must be prepared to bear the economic risk of such an investment for an indefinite period of time and be able to withstand a total loss of their investment. Please consider carefully the investment objectives, risks, transaction costs, and other expenses related to an investment prior to deciding to invest.  All private placements of securities and other broker dealer activities are currently offered through a partnership with Independent Brokerage Solutions LLC MEMBER: FINRA / SIPC (“IndieBrokers”), which is located at 485 Madison Avenue 15th Floor New York, NY 10022. (212) 751-4424. Ballast Rock Holdings LLC and its affiliates are independent and unaffiliated with IndieBrokers.  Any securities transactions or related activities offered by Ballast Rock associated persons are conducted in their capacities as registered representatives of IndieBrokers.  Please see our Form CRS. 
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To check the background of IndieBrokers and its representatives, visit FINRA’s BrokerCheck. 
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© 2022 Ballast Rock Holdings LLC. All rights reserved.
  • Home
  • What We Do
    • Real Estate >
      • Multifamily
    • Ventures >
      • Acronym Venture Capital
      • Louisiana Green Fuels
    • Capital Advisory
  • About Us
    • Our Story
    • Leadership
  • Fund Updates
    • Acronym VC Fund
    • Louisiana Green Fuels
    • Sunbelt Fund II
    • Sunbelt Fund I
  • Education
    • Portal "How To"
    • Corporate Deck
    • Articles
    • Press >
      • Lument Workforce Housing Webcast
      • CoStar Gleneagle Article
      • CoStar Coleman Article
      • Multifamily Executive
  • Login