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McKinley has launched a $25MM - $50MM fund to invest in real estate development opportunities. The Fund has already received $20MM in capital commitments and has placed a substantial portion of that into investments to date.

Investments

There is a unique opportunity in the market today for McKinley Partners to provide capital to experienced developers and builders in excellent projects, in strong and under-supplied markets. Investments are targeted as:

  • $1MM - $5MM into near-term projects with durations of 18 to 36 months.
  • Invests structured as Debt or Preferred Equity that provide preferred returns of capital and profits as priority over existing and/or developer equity and profits.

Market Overview

Land development and homebuilding are still constrained by lack of capital, despite housing shortages already returning to California in A and B market locations; even C markets are feeling the lack of supply. Recovering home sales and job markets have regained momentum, but...

  • Traditional lenders have not returned to their normal level of market activity.
  • Many small operators with quality projects in under-supplied markets are unable to bring their projects to market which has created exceptional opportunities for private equity investments into key projects.

Fund Return Targets

The fund will place a range of investments that will:

  • Seek 15% - 25% IRR returns depending on the specific investment.
  • Investor capital will receive a preferred return on all invested capital, inclusive of management fees and pursuit costs.
  • Due to the nature of and various duration of the investments, fund distributions of profit proceeds will be made on a per project investment basis.

For more detailed information please contact:

Jeff Shaffer
jeff@mckinleycp.com

Bryce Lewis
bryce@mckinleycp.com