Alkaid Fund 1 - Value-Added Fund

Alkaid (Eta Ursae Majoris) is the star at the tip of the Big Dipper's handle, named from Arabic for "the leader of the daughters of the bier" and signifies vigor, achievement, and progress. As such, we thought it a fitting name for BENA Capital’s first two sister funds, The Value-Added Fund and the Balanced Investing Fund.

The Value-Added Fund was formed for the purpose of investing in residential multifamily with the objective of driving improvement in NOI (net operating income). It successfully delivered on this objective, returning a stunning 64.6% ROI, compared to a 6.0% annualized ROI target.

Fund SUMMARY

• Investment Profile: Value-add Real Estate

• Investment Period: 1.5 years

• Target Return On Investment: 6.0% annualized

• Actual Return on Investment: 64.6%

• Debt Free

investment strategy & Results

The Alkaid Fund 1utilized the following strategic framework:

Key Investment Factors

The Fund executed against all four of its key investment factors to deliver a successful outcome. (1) Macroeconomic fundamentals, (2) Submarket dynamics, (3) Capital market conditions and (4) Property‐specific characteristics.

Value-Creation Components

The key to acquiring, repositioning, and renovating distressed or poorly managed assets is to do so with a rigorous plan in place. The Fund acquired units using its all-cash offer to achieve low‐basis acquisition prices. It immediately undertook key physical asset enhancements in order to bring units into rentable condition. Through diligent management, it exercised operating expense control in order to drive up profits. It also increased revenue by leasing vacant units - all of which directly improved net operating income.

Operating Strategy

The Fund focused on occupancy and rental rate growth to enhance property‐level net operating income, driving investor returns. This included benchmarking against competing properties and offering tenants compelling value.

Capital Strategy

In the Fund, appreciation was prioritized. As a result, key value-add investments were made that had a short payback period and drove NOI.

DISCLAIMER

This website is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. Investments involve risk, including loss of principal. Past performance does not guarantee future results.