New Passive Investment Opportunity
CAPITAL CITY REAL ESTATE FUND
WHY INVEST IN THIS OPPORTUNITY?
- Customizable Real Estate Fund With A Unique Investing Strategy
- We create investment strategies that maximize our profit for the clients
- We invest in areas where we have a track record of success
- We come up with customized strategies that fit both sides, investors and our own needs
Our Track record
Returns
Experience
Raised
Investment Highlights
- The first tranche will be $20M with an overall fund capital of $100M
- Target IRR is 16%
- Anticipated cash-on-cash Returns will be 10-13%
- 70/30 Equity Split
- We are targeting 2000 & newer MF low-risk stabilized assets
- Multiple assets in multiple locations with a focus on cash flow to lower risk.
The Economy
Trends in the economy have been mixed to this point in 2022. The labor market has remained tight, and unemployment is near all-time lows. Inflation has dragged down consumer sentiment and prompted the Federal Reserve to raise rates.
Rent Trends
The first half of 2022 recorded 9.8 percent rent growth year-over-year. Additional rent growth is forecast to continue for the second half, but the pace of increases is expected to be more modest.
Investment Market
The investment market remained active in the first half, and cap rates averaged 4.2 percent as investors continued to allocate capital to multifamily assets. The start of the third quarter has recorded some cooling as buyers and selling adjust to the new pricing.
Financing Climate
Multifamily mortgage originations began 2022 on an upswing, with the Mortgage Bankers Association reporting a 57 percent year-over-year spike in the first quarter. As market conditions shifted in the second quarter, the agencies became more aggressive in underwriting transactions.
NATIONAL MULTIFAMILY OUTLOOK 2022
8.5%
Diversification
Investor equity is invested over multiple acquisitions in multiple markets, with individual property business plans and hold periods.
3.5
UNEMPLOYMENT RATE
Low unemployment has led to higher wages, which has somewhat offset the impact of rising prices.
4.2%
VACANCY
Vacancy dropped 20 basis points in the first half of this year and should remain flat in the coming quarters.
750K
UNDER CONSTRUCTION
Developers respond to strong renter demand by moving more projects into the construction pipeline.
+9.8%
RENT GROWTH
Additional rent growth is forecast for the second half, but the pace of increases will be more modest.
4.2%
AVERAGE CAP RATE
With interest rates on the rise, cap rates have ticked up from 2021 levels. Cap rates averaged 4.2 percent in the first half.
INVEST IN THIS FUND
CEO
SHANNON ROBNETT
Shannon has been in the real estate industry for 27 years. He has been involved from start to finish on over $250MM in construction projects covering the gamut from multi family, professional office buildings to City halls, fire and police stations, schools, industrial and mini storage.
As a developer with over 25 years of personal and hands-on development and construction experience, few in this industry are more dedicated to delivering numerous passive income streams to their syndicate partners. Along with my knowledgeable and dedicated team, we at Shannon Robnett Industries (SRI) create a second-to-none investor experience.