CEP Multifamily Fund II
Fund Parameters
$50Mil +
Equity Fund Offering
7 Years
Anticipated Life of Fund
$250Mil
Total Capitalization
900 +
Units
CEP Multifamily Fund II
CEP Fund II Parameters
$50Mil +
Equity Fund Offering
7 Years
Anticipated Life of Fund
$250Mil
Total Capitalization
900 +
Units
The Opportunity
Due to market dynamics, CEP is seeing the best buying opportunity since the Global Financial Crisis.
Specifically, we can acquire properties BELOW replacement cost today. The lower price, coupled with explosive rent growth due to a supply gap in the coming years will enable us to deliver generational risk-adjusted returns. Given this opportunistic market dynamic, we will be able to minimize risk and maximize return; effectively, buying core assets that deliver core-plus returns and buying core-plus assets that deliver value-add returns.
We apply this thesis to attainable/workforce housing in high-growth secondary and tertiary suburban markets because these markets have proven to deliver superior risk-adjusted returns relative to urban markets over multiple cycles. Suburban market returns outpace those of urban markets during downturns while keeping pace with, and even slightly outpacing, urban markets when the bull is running.
The Opportunity
Due to market dynamics, CEP is seeing the best buying opportunity since the Global Financial Crisis.
Specifically, we can acquire properties BELOW replacement cost today. The lower price, coupled with explosive rent growth due to a supply gap in the coming years will enable us to deliver generational risk-adjusted returns. Given this opportunistic market dynamic, we will be able to minimize risk and maximize return; effectively, buying core assets that deliver core-plus returns and buying core-plus assets that deliver value-add returns.
We apply this thesis to attainable/workforce housing in high-growth secondary and tertiary suburban markets because these markets have proven to deliver superior risk-adjusted returns relative to urban markets over multiple cycles. Suburban market returns outpace those of urban markets during downturns while keeping pace with, and even slightly outpacing, urban markets when the bull is running.
10.00% Preferred Return
$100K Minimum Investment
The First Seeded Asset
Villas at Portage Creek
The Villas at Portage Creek is a top performer in a high-growth submarket and features 109 garden-style units with desirable two- and three-bedroom floor plans (937–1,678 SF) that appeal to the area’s workforce and their families. The property is located less than 3 miles from the Cascade Industrial Center (CIC), a rapidly growing employment hub and home to Tesla, Blue Origin, and a new one million SF Amazon fulfillment center. The CIC is expected to support up to 20,000 family-wage jobs by 2040.
Targeted Returns vs. Targeted Investor Returns
Average Annual Cash-on-Cash Return
7.5%
6.5%
Internal Rate of Return
15%
12%
Equity Multiple
3.25X
2.5X
Targeted Returns Vs Targeted Investor Returns
Average Annual Cash-on-Cash Return
7.5%
6.5%
Internal Rate of Return
15%
12%
Equity Multiple
3.25X
2.5X
Fund Lifecycle Target – 7 Years
Commitment Phase
$50M+
(Fund Formation / Capital Raising / Capital Calls)
Investment Phase
4+ Properties
(Deal Sourcing / Due Diligence / Capital Deployment)
Hold Phase
5+Years
(Asset Management / Value Creation / Exit Planning)
Exit Phase
2+ Years
(Exits / Value Capture / Winddown)
Fund Lifecycle Target – 7 Years
Commitment Phase
$50M+
(Fund Formation / Capital Raising / Capital Calls)
Investment Phase
4+ Properties
(Deal Sourcing / Due Diligence / Capital Deployment)
Hold Phase
5+Years
(Asset Management / Value Creation / Exit Planning)
Exit Phase
2+ Years
(Exits / Value Capture / Winddown)