Invest into a highly diversified fund of cash flowing recession resistant assets.
Investment Summary
SMK Alternative Income Fund III provides a diversified blend of cash flowing recession resistant assets, focusing on income and growth.
Fund III seeks to reduce risk through cautious alternative investment selection, and by spreading capital across multiple assets, regions and operating partners.
The Fund accomplishes this objective by providing investors direct access to cash-flowing property and real estate backed fixed income with top operating partners.
Our asset classes include Mobile Home Park’s (MHP), Self-Storage facilities (SS), Industrial, Apartments, and a small portfolio allocation in fixed income assets including ATM’s and Private Real Estate Debt.
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Investment Highlights
- Capital is diversified across multiple asset classes, regions and operating partners.
- Mobile Home Parks, Self-Storage and Industrial have been amongst the top performing asset classes through multiple market cycles including, the great recession and the pandemic.
- The Fund invests with several repeat and best in class operating partners that each have very attractive track records
- Vertically integrated operating partners with asset and property management all in-house.
- Internal acquisitions teams integrated with proprietary technology generates attractive off-market deal flow.
- The fund has invested across 7 growing portfolios consisting of 30 properties in 10+ states, with a goal of providing investors with strong and consistent cash flow beginning in year 1
- This investment is targeted to provide a highly attractive blend of in-place income and growth.
- The projected investment duration = 5+ years with a focus on adding value in the early years, returning investor capital through property sales, refinances and redemption requests, in years 2-4 (dependent on market conditions), and holding for income and long term growth.
- Professionally managed Fund focusing on capital preservation with downside protection
- Combine lowly correlated recession resistant asset classes into a portfolio for passive investors
- Attractive risk-adjusted return and wealth creation
- Favorable tax benefits including accelerated depreciation and cost segregation are estimated to provide passive investors with 40-80% passive losses in year 1
Gain a superior hedge against inflation through:
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- Blended return of consistent income + asset value growth
- NOI growth from rent increases and expense reimbursements
- MHP + SS tenants are less price sensitive compared to other asset classes
- NNN Industrial lease structure has built in rent escalation clauses and protects investors from rising expenses (tenant pays all)
Current Portfolio Allocation
The Fund is currently comprised of 7 separate investments with 27.23% of the portfolio allocated into Fixed Income assets including both ATM’s and a Private Real Estate Debt Fund. The remaining 72.77% of the portfolio is invested in Income + Growth investments across 30 properties including: Mobile Home Parks, Self-Storage, NNN (triple net) Industrial, and Apartments.
Projected Investor Returns and Offering
The projected investment duration = 5+ years with a focus on adding value in the early years, returning investor capital through property sales and refinances in years 2-4 .
Cash flow distributions to investors are projected to begin in year 1 in the range of 4-7%, increasing to 7-9% in years 2-3 and 8-10% by year 4+. This opportunity is projected to provide investors with a weighted average cash on cash return of 7-10%+.
We have 3 Class shares available for investors, Class C have a $50,000 minimum investment and Class B have a $250,000 minimum and Class A have a $500,000 minimum:
