70% Equity Raised for Fairhaven Court Despite Challenging Market Conditions
We are pleased to share that we have raised over 70% of the required equity from 25+ investors for Fairhaven Court. We anticipate rounding out the remaining equity needed in the next week or two.
Industry experts and colleagues of ours have noted that right now remains a challenging environment to raise equity. Although this has not been our experience with Fairhaven Court, we nonetheless immensely appreciate our investors’ trust.
Among the investors who either have committed or have shown their interest, the consensus reasons why they have demonstrated confidence in Fairhaven Court and Breneman Capital are the following:
The Story: Our Founder and CEO began his real estate investment career in Madison, purchasing student rental properties while a student at the University of Wisconsin. Moreover, 60% of the Breneman Capital team are University of Wisconsin graduates. Deep-rooted knowledge of a market is a necessity when partnering with a real estate sponsor.
The Market: Although economic uncertainty persists, Madison is one of the most stable markets in the country and is buoyed by a resilient employment base of higher education, medicine, and government. Investments made available for syndication in Madison are few and far between, and Fairhaven Court provides a rare opportunity for our investors to gain exposure to an extremely attractive market.
Return Profile and Hold Period: Breneman Capital’s approach of being cash flow and long-term oriented has been well received by our investors. We have strayed from the high-risk “fix-and-flip” strategies that, in our opinion, disproportionately benefit real estate sponsors. In addition, our use of modest leverage provides confidence in our ability to grow yet protect our investors’ capital.
Minimal Variables: The strategy for this investment boils down to truly one factor – rents. With the last 12 leases at the property commanding 15.7% premiums relative to existing rents, there is a clear and proven path for substantial rent growth at Fairhaven Court. The investment doesn’t require an aggressive “gut rehab” project that increases the number of variables and significantly amplifies the range of potential outcomes.
High-Quality Property and Location: Meeting investor expectations for return profile is a necessity for successfully raising capital. However, return profiles need to be consistent with the quality of the underlying asset. Breneman Capital’s most important criteria to even begin pursuing an opportunity are that property must be 1) newer construction and desirable real estate, and 2) in a strong location. Fairhaven Court meets the strict criteria that we set for ourselves.
Investors have determined these primary qualities to be why the returns transcend the risk, and we are thrilled to deliver our investors a compelling opportunity such as this one. We are eager to continue the equity raise of Fairhaven Court and gain the commitment of investors, both new and repeat ones.
Best regards,
The Breneman Capital Team