JKAM Diversified Fund II
The Diversified Fund II takes the guesswork out of project selection, underwriting and management.
With the JKAM’s extensive team experience you are provided a turnkey investment into exclusive best in class private alternative assets ensuring your success through economic cycles.
Key Investment Details
Preferred Return: 6-8% | Projected IRR: 15%+
Projected Hold Period: 5-6 yrs
Fund II Highlights
With participation in the JKAM Diversified Fund II you’ll benefit from:
- Experienced Manager Project Selection
- Immediate Diversification
- Lower Minimums
- Cash Flow
- Low or No Volatility
Fund II Current Acquisition
We have completed the underwriting, vetting and negotiation of exciting and profitable terms for the investors in Fund II.
The Houston PFC Portfolio comprises 666 units across three multifamily properties:
Beckley (1999), Highland (1994), and Meritage (2008) with 210, 216, and 240 units respectively.
Why We Like This Opportunity
- Downside protection: Returns come almost entirely from placing the assets in a property tax-exempt Public Facility Corporation (“PFC”) in partnership with the Houston Housing Authority. This program allows generous tax benefits with much less onerous compliance than other affordability programs.
- Long-term fixed-rate debt: This locks in healthy cash flows and protects the investment from interest rate volatility and the need to sell or refinance in the near term.
- Attractive Leverage: Lenders underwrite the properties’ incomes on a post-property tax exemption basis which allows lenders to provide more debt while still meeting conservative minimum debt service coverage ratio requirements.
- Newer vintage: Beckley, Highland, and Meritage were built in 1999, 1994, and 2008, respectively. All of the properties have great “bones” and present little deferred maintenance as well as minimal risk of unexpected capital expenditures arising throughout our hold period.
- Proven Operating Partner – With a current portfolio of 11 properties and 2,553 units and 2 successful exits primarily in Houston we are confident in this operator’s ability to execute on their business plan in this market.
- Distributions & Communications – The Operator provides monthly distributions by the 25th of each month (starting in July 2023), monthly updates and financial reports by the 25th of each month, and detailed Quarterly reporting by the 25th of the month following the end of the previous quarter.
- Better Terms- Due to the size of JKAM’s investment in this deal, our investors receive the Class B terms reserved for investments of $500,000+
Upon investing into the JKAM Diversified Real Estate Fund II, you will gain ownership in all of the Fund’s existing and future value-add properties.
Let’s chat, we love talking shop and are passionate about sharing how to put the stress of economic cycles behind you and create wealth without Wall Street.