Background
Rising interest rates from 2022 to 2024 constrained the U.S. real estate market, driving property values downward on average 20%.
By early 2024, however, pricing data signaled that property pricing had reached its low point and started to recover, ushering in a new cycle for the market.
Fast forward to 2025, and we see continued increases in property valuations with property pricing increasing across many real estate sectors.
This highlights the ongoing recovery and, while uncertainties remain around factors such as unemployment, tariffs, inflation, and interest rates, the data suggests that the market has moved past its most challenging phase.
Markets move in cycles, and it’s likely that U.S. commercial real estate has entered a promising new phase of growth and opportunity.
Mark Khuri shares a brief overview of the purpose and strategy behind Alternative Fund IV:
Investment Summary
SMK Alternative Fund IV provides a diversified blend of cash flowing recession resistant assets, focusing on income and growth.
Fund IV 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 targeted real estate sectors include Mobile Home Park’s (MHP), Self-Storage facilities (SS), Industrial, Apartments, and a small portfolio allocation in fixed income assets including Private Real Estate Debt.
Fund IV Highlights
- Capital is diversified across multiple asset classes, regions and operating partners.
- The Fund invests with several repeat and best in class operating partners that each have very attractive track records
- 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
- Favorable tax benefits including accelerated depreciation and cost segregation are estimated to provide passive investors with 20-40% 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)
Why Now?
The combination of lower acquisition costs and uncertainty in the market place, makes this an excellent time to consider an investment.
We remain cautiously optimistic that 2025 will present a strong opportunity to capitalize on depressed asset prices amid ongoing market volatility.
This opportunity is an ideal fit for accredited investors looking for income and growth through a diversified portfolio.
Investment Offering:
We have 3 Class shares available for investors, Class C have a $75,000 minimum investment and Class B have a $250,000 minimum and Class A have a $500,000 minimum:
*Contact us for special terms on investments >$1,000,000
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