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The Blue Lake Multifamily Fund:
Investors First.
Our Multifamily Fund is a unique and advantageous model that allows accredited investors to invests in a diversified portfolio, across different assets and in different markets, while maximizing their position for overall returns.
The Fund's Investment Criteria
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Fund Size: $100M
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Anticipated Life of Fund: 5 to 7 years
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Target Holdings: 10 to 15 properties with 200+ units located in high-growth markets
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Projected Returns: IRR 14.9% - 16.4%, Annual Pref 8%, EM 1.87x - 2.00x
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Strategy: Class B+/- multifamily assets targeting underperforming, value-add, or institutional assets
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Investing opportunity: Accredited Individuals, Family Offices, Funds, SD-IRA, 401Ks
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Minimum Investment: $50,000
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Distribution Frequency: Quarterly
Markets of Focus
INVESTOR CENTRIC MODEL
As we grow the portfolio, investors can repeatedly increase their investments along the way, moving from one investment class to the next. The share of sale proceeds in most funds is generally a 50% (LP) / 50% (GP) split. However, in the Blue Lake Multifamily Fund, investors can achieve an incredibly rare split of up to 80% (LP) / 20% (GP). This highlights our commitment to prioritizing investors first.
8% ANNUAL PREF | 14.9%- 16.4% IRR | 1.87X - 2.00X EM
WHY INVEST IN THE BLUE LAKE MULTIFAMILY FUND?
Target Markets
Current Markets
How We Mitigate Risk in Today's Volatile Economy
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Acquisitions: Blue Lake underwrites conservatively and stress test each deal based on the risk profile of the asset. We only pursue deals that align with our investment strategy and buy at a discount to replacement cost to further mitigate market risk. We believe due to the volatility in the market, now is an opportune time to identify and acquire assets that align with this criteria.
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Financing: Due to interest rate volatility, we are focused on exclusive fixed rate agency debt for new acquisitions. Eliminating the fluctuations in debt service payments provides investors with greater security.
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Operational Efficiency: Blue Lake has developed a best-in-class team to closely manage our assets. One critical focus for investor's success is on Asset Management, with emphasis on operational efficiency. We strategically analyze utility bill-backs, implement ancillary income strategies, and compare in-take fees to maximize income across our portfolio.
We are also prioritizing expense discipline given the inflationary environment we are currently operating in. With the rising costs of fixed expenses such as taxes and insurance, we are managing our controllables to ensure we optimize net operating income and resulting cash flows.
Resident satisfaction is at the forefront of our operational strategy. Our maintenance team is working closely with the front office to ensure resident inquiries, work orders, and other requests are addressed timely and effectively to maximize the resident experience. High retention reduces turn costs, customer acquisition expenses, frictional vacancy, and high reviews will drive more demand.
This information is an investment summary provided to prospective investors and others. This information is not an offering to sell either a security or a solicitation to sell a security. At the request of a recipient, Blue Lake Capital (“Manager”) will provide a private placement memorandum, subscription agreement, and the Limited Liability Company Operating Agreement. Blue Lake in no way guarantees the projections contained herein. Real estate values, income, expenses, and development costs are all affected by a multitude of forces outside the Company’s control. This investment is illiquid and only those persons that are able and willing to risk their entire investment should participate. Please consult your attorney, CPA, and/or professional financial advisor regarding the suitability of an investment by you.
Alignment of Interest With Investors
Ellie Perlman, Blue Lake’s CEO and Founder, personally invests a substantial amount of her own capital, as well as her families’ funds, in every asset Blue Lake acquires. This ensures every acquisitions, the management of the assets, and the timing of dispositions are equally beneficial for all parties, as everyone is invested together.
Strong Performance on Exited Deals
Our track record competes with some of the largest institutions in real estate with an average net IRR of 30.9% to investors. We are obsessed with our investors and continually strive to exceed our commitments to them.
High Quality Assets at Favorable Terms
Current macroeconomic conditions are beginning to drive market dislocation, which we believe will offer a generational opportunity for investors to acquire institutional quality assets at more favorable terms, including price!
Investors Come First
Blue Lake Capital prioritizes our investors, first and foremost. While there are many options available for investors today, Blue Lake Capital investors repeatedly invest with us. We are honored by this and are highly committed to keeping our investors at the forefront of our fiduciary responsibilities.
Transparency
We pride ourselves on reporting and communication throughout the entire investment cycle; from initial underwriting to distribution and disposition so investors have the most accurate, honest, and up-to-date information regarding their investment.