One market. Every strategy.
The Fund's strategy spans the full life cycle of a property, including zoning and entitlement work, new construction, renovation of existing buildings for sale or long-term ownership, and operational improvements at stabilized assets. Investments may be held for income, refinanced, or sold based on market conditions.
Strategies
Entitlements
Acquire land and secure the approvals that make it buildable.
Return driver
Value is created at the land basis, before construction begins.
Ground-up construction
Build new apartment buildings, townhomes, and mixed-use.
Return driver
Qualifying new construction can carry Paterson's 30-year tax exemption, lifting net operating income.
Stabilized value-add
Acquire existing apartment and mixed-use buildings; renovate and re-lease.
Return driver
Rising income, plus depreciation that can pass through to investors.
Fix-and-sell
Renovate residential properties and sell them.
Return driver
Shorter holds that can return capital earlier in the Fund's life.
Allocation across strategies is at the General Partner's discretion and will vary.
Fund terms
The Fund has a 10-year term from final closing and targets a 17–20% net IRR. The General Partner aims to begin returning capital as early as year three, as investments are refinanced or sold and market conditions allow. Targets are not guaranteed, and distributions are made at the General Partner's discretion.
- Minimum investment
- $100,000
- Fund term
- 10 years from final closing; may be extended by up to three years
- Investment period
- Up to 5 years from final closing
- Investors
- Accredited investors only (Rule 506(c))
- Management fee
- 2% per year, paid quarterly
- Profit split
- Investors first receive back all capital they contributed for each realized investment, including capital used for Fund fees and expenses; profits are then split 80% to investors and 20% to the General Partner
- Reporting
- Annual audited financials and Schedule K-1s
- 17–20%
- Target net IRR (net of fees and carried interest)Targets are not guaranteed.
- 1.6x
- Target equity multiple
Targets are hypothetical, based on the General Partner's assumptions, and stated net of fees and carried interest. They are not guarantees, and actual results may differ materially. See Disclosures.
Want the full terms?
Our team will walk you through the limited partnership agreement, the distribution waterfall, and how to invest.
How value is created
A Paterson project completed by the partners before the Fund launched.
Our partners in Paterson
The partners work across Paterson in apartment buildings, townhomes, mixed-use buildings, and land awaiting approvals. These are some of the projects they completed before the Fund launched.
Projects shown were completed by Veloce Capital or Ania Management before the Fund launched and are not Fund investments. See Disclosures.
Built for tax efficiency
On stabilized properties the Fund holds, the General Partner may use three tools to accelerate depreciation and pass the deductions through to investors.
01 · Accelerate
Cost segregation
An engineering study moves components such as appliances, millwork, lighting, and site work off the 27.5-year schedule onto 5-, 7-, and 15-year lives.
02 · Expense
Bonus depreciation
Under current federal law, qualifying components can be deducted in full in the first year.
03 · Pass through
Your Schedule K-1
The Fund is a partnership, so deductions flow to investors on Schedule K-1. When depreciation, a non-cash expense, exceeds income, the K-1 can show a net loss in the early years.
What to know
- Recapture. Depreciation is recaptured on sale, as ordinary income or at up to 25% on the building.
- Passive losses. Losses generally offset passive income and carry forward until used.
- Scope. Property built or renovated for sale, and land, are generally not depreciated.
Not tax advice. Tax outcomes depend on each investor's situation, and investors may have filing obligations in New Jersey and in their state of residence. Consult your own tax advisor. See Disclosures.