Investment Criteria
In order for an opportunity to be considered for investment, it typically will provide cash flow to our investors of 3-7%+ in year 1, with an average of 7-12%+ cash on cash over 5-10 years, and an average annual ROI and IRR of 13-20%+.
Most of our investments are stabilized at acquisition, with high occupancy. They often are mismanaged or under performing. We focus on ensuring each investment includes a compelling, conservative and realistic value-add strategy to grow the net operating income and corresponding asset value.
Disclaimer: All investments involve risk. You should consult your attorney, financial advisor, and/or accountant to understand the risks of this investment prior to considering any investment in this fund. Any projections, estimates, or targets are aspirational only. No return is guaranteed. Any information reflecting past performance is no guarantee of any current or future performance. None of the information contained in this website constitutes any offer to sell nor is any information herein the solicitation of an offer to buy any security. Securities may only be purchased through offering documents which contain details about the risks associated with an investment in the fund. Any investment details herein or in the offering materials are believed to be reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Multifamily - Assumable Loan Dallas, TX
This unique opportunity provided us with 4 main competitive advantages rarely found in any single deal:
1) 5 year fixed interest rate of 3.57%, with a loan to cost of 56%
2) Value add business plan to inject $4m and renovate all 200 units
3) 50% property tax exemption saving $278k in year 1
4) Forced sale providing us with roughly a $5m, or 16% discount to 2023 pricing
Projected Investor Average Annual ROI: 16-19%
SMK Alternative Income Fund III
The Fund provides investors with a highly 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 is comprised of 9 separate investments across 33 properties including: Mobile Home Parks, Self-Storage, NNN (triple net) Industrial, and Apartments.
Projected Investor Average Annual ROI: 11-16%
Tax Exempt Multifamily - Houston, TX
Located only 10 minutes from NASA, this 7 year investment included 2 tax exempt apartment communities next door to one another totaling 532 units in Houston TX.
Each property was 93-95% occupied with outdated interiors, and the business plan entails curing deferred maintenance and upgrading the property. In addition, the property will be exempt from property taxes for 99 years, saving over $1.09M annually.
Projected Investor Average Annual ROI: 15-20%
Tax Exempt Multifamily - Dallas, TX
An attractive 7 year investment opportunity with a blended return of income and growth with year 1 cash flow of 5-7%. This investment included 3 tax exempt apartment communities totaling 1,501 units in Dallas Texas.
Each property was 94-96% occupied with below market rents, and will be exempt from property taxes for 99 years, saving over $4.5M annually.
Projected Investor Average Annual ROI: 17-21%
Tax Exempt Multifamily - Houston, TX
Access a very unique investment opportunity into a 2015 built, 98% occupied, 215 unit, affordable apartment community in Texas.
In exchange for rent and income-restricting 50% of units and other considerations, the property qualifies for a 100% property tax exemption, resulting in an annual savings of over $900k in real estate taxes annually.
Projected Investor Average Annual ROI: 17-20%
Multifamily Portfolio
An investment into a 6,000+ unit apartment portfolio. This offering allowed investors to immediately diversify capital across more than 25 apartment communities in 15 states, with a value over $1 billion.
The portfolio has a projected duration of 5-10 years and is targeted to provide very attractive in-place income and growth. It is anticipated that investors will begin to receive a portion of principal back in years 3-5 through refinancing and sales of properties in the portfolio.
Projected Investor Weighted Annual ROI: 13-16%
Tax Exempt Multifamily - Corpus Christi, TX
Access a very unique investment opportunity into a 2008 built, 92% occupied, 336 unit, affordable apartment community in Texas.
In exchange for rent and income-restricting 50% of units and other considerations, the property qualifies for a 100% property tax exemption, resulting in an annual savings of over $600K in real estate taxes annually.
Projected Investor Average Annual ROI: 17-20%
Multifamily - Phoenix, AZ
Invest into a shorter 2-3 year term off-market apartment community in one of the fastest growing cities in the country. The property was 98% occupied at acquisition and consists of 156 units, 11 miles from downtown Phoenix.
The business plan calls for an injection of $2.3m in renovations and upgrades. We will use the same renovation plan that has worked many times, grow the net operating income from $1.3m to $2.4m, and sell the property in 3 years.
Projected Investor Average Annual ROI: 16-21%
Projected Investor Average Annual ROI: 15-19%
SMK Alternative Income Fund II
A diversified fund combining 2 of our favorite asset classes together, Mobile Home Parks + Self-Storage Facilities. The fund allows investors to diversify capital across assets, regions and best-in-class operators.
Strategy: The Fund is invested across best-in-class real estate operators with successful track records acquiring, improving, optimizing, and managing mobile home parks and self-storage facilities.
Summary: The goal of this investment was to assemble a diversified portfolio of cash-flowing property, and to provide investors direct access to carefully selected assets, regions and operating partners.
Mobile Home Park - Opportunity Zone Fund
A 10-year term investment into an established private Opportunity Zone Fund consisting of 9 mobile home communities across 7 states, totaling over 900 lots.
2021 Opportunity Zone Benefits include:
- Tax deferral through 2026
- Step-up in tax basis of 10% of deferred gains
- No tax on investment appreciation
The business plan includes a heavy value-add strategy to inject $14m across the portfolio including park renovations + increasing occupancy through infill and eventual sale of ~150 new homes.
Projected Investor Average Annual ROI: 14-16%
Multifamily - Las Vegas, NV
Invest into a 3-4 year term off-market apartment community in one of the fastest growing cities in the country. The property was 93% occupied at acquisition and consists of 557 units, 1.5 miles from the Las Vegas Strip.
The business plan calls for an injection of $11.9m in renovations and upgrades. We will use the same renovation plan that has worked many times, and increase the rents from $1,045 on average at acquisition, to $1,323 post renovation.
Projected Investor Average Annual ROI: 22-25%
Multifamily - Phoenix, AZ
Invest into a shorter 2-3 year term off-market apartment community in one of the fastest growing cities in the country. The property was 95% occupied at acquisition and consists of 274units, 6 miles from downtown Phoenix.
The business plan calls for an injection of $5.4m in renovations and upgrades. We will use the same renovation plan that has worked many times, grow the net operating income from $2.2m to $3.6m, and sell the property in 3 years.
Projected Investor Average Annual ROI: 17-20%
Multifamily - Las Vegas, NV
Invest into a shorter 2-3 year term off-market apartment community in one of the fastest growing cities in the country. The property was 97% occupied at acquisition and consists of 228 units, 5 minutes from the Las Vegas strip.
The business plan calls for an injection of $4.3m in renovations and upgrades. We will use the same renovation plan that has worked many times, grow the net operating income from $1.8m to $3.3m, and sell the property in 3 years.
Projected Investor Average Annual ROI: 15-17%
Multifamily - Dallas, TX
Invest into a shorter 2-3 year term off-market apartment community in one of the fastest growing cities in the country. The property consists of 321 units and the business plan calls for an injection of $5.9m in renovations and upgrades, grow the rents from $908 on average today, to $1,116 post renovation and provide a very attractive and affordable housing option.
We will use the same renovation plan that has worked many times, grow the net operating income from $1.5m to $2.5m, and sell the property in 3 years.
Projected Investor Average Annual ROI: 15-17%
Multifamily - Las Vegas, NV
A rare off-market, investment into a 94% occupied 252 unit apartment community, in one of the fastest growing cities in the country.
Strong value-add strategy to inject $4.4m in renovations and upgrades, grow the rents from $1,089 on average today, to $1,290 post renovation and provide a very attractive and affordable housing option. We will use the same renovation plan that has worked many times, grow the net operating income from $2.2m to $3.3m, and sell the property in 3 years.
Projected Investor Average Annual ROI: 15-17%
SMK Alternative Income Fund
A diversified fund combining 2 of our favorite asset classes together, Mobile Home Parks + Self-Storage Facilities. The fund allows investors to diversify capital across assets, regions and best-in-class operators.
Strategy: The Fund is invested across best-in-class real estate operators with successful track records acquiring, improving, optimizing, and managing mobile home parks and self-storage facilities.
Summary: The goal of this investment was to assemble a diversified portfolio of cash-flowing property, and to provide investors direct access to carefully selected assets, regions and operating partners. Our fund was fully invested and closed in Mid 2021 and consists of 29 properties, including 3,075 lots & units in 9 states with a mix of, Mobile Home Parks and Self-Storage Facilities.
Projected Investor Average Annual ROI: 13-18%
Multifamily - Phoenix, AZ
A recent off-market 288-unit apartment community in Phoenix, AZ. At acquisition the property was 98% occupied with all 2 and 3 bedroom units. This investment included a robust renovation plan to upgrade the interior units and exterior grounds.
Once fully renovated, the property will provide one of the most affordable high-end renovated products in the local market, providing a large discount to Class A product and the highest quality Class B product.
Projected Investor Average Annual ROI: 17-21%
SOLD in 2021, Investors Earned 92% Annual ROI!
Disclaimer: All investments involve risk. You should consult your attorney, financial advisor, and/or accountant to understand the risks of this investment prior to considering any investment in this fund. Any projections, estimates, or targets are aspirational only. No return is guaranteed. Any information reflecting past performance is no guarantee of any current or future performance. None of the information contained in this website constitutes any offer to sell nor is any information herein the solicitation of an offer to buy any security. Securities may only be purchased through offering documents which contain details about the risks associated with an investment in the fund. Any investment details herein or in the offering materials are believed to be reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Recession Resistant Fund
At SMK Capital Management we believe that in today’s uncertain environment it is best to be prepared for a potential market correction. Keeping this belief at the forefront of our investment strategy, in 2018 we set out to create an opportunity to provide investors with stability and performance – that is, generate consistent and predictable cash flow – through a recession or financial crisis.
Our Recession Resistant Fund combines specific commercial real estate asset classes that have historically performed well in varying market cycles. By late 2019 the Fund was fully invested, and we currently hold an equity ownership in 35 properties across 13 states encompassing over 11,500 units valued at over $450,000,000.
Projected Investor Average Annual ROI: 16-22%
Mobile Home Parks + Self-Storage Fund
This investment opportunity was in a highly diversified Fund which acquires both Mobile Home Parks and Self-Storage facilities across the U.S.
The opportunity was designed to provide investors with a combination of stabilized cash flow and potential upside to help reduce risk for investors by investing in stabilized properties with a value-add strategy across the portfolio to grow the Net Operating Income.
Projected Investor Average Annual ROI: 15-18%
Multi Family – Austin, TX
This was an equity investment into an apartment community 94% occupied at acquisition, consisting of 350 units built in 1983, located in Northwest Austin TX which is consistently ranked as the fastest growing city in the U.S.
The property sits on over 17 acres consisting of 271,236 rentable square feet across 43 buildings.
The community features two swimming pools, built-in outdoor grills, two dog parks, a playground, business center, fitness center with cardio equipment, large clubhouse, and lush mature landscaping throughout, with plenty of green open space.
Projected Investor Average Annual ROI: 18-20%
SOLD in 2022, Investors Earned 20% IRR
Mobile Home Park – Coastal Alabama
This investment consists of a 200 space Mobile Home Park portfolio in Alabama across two different communities. The communities were acquired at 9.43% cap rate which the operator feels is 15% below the current market value. The property was 90% occupied at acquisition.
The strategy is to perform value-add initiatives of filling vacant lots and filling 20 additional lots with lease-to-own tenants. The additional 20 lots are already sub-metered for electric & permitted. At time of acquisition a waiting list of potential tenants existed.
Projected Investor Average Annual ROI: 15%
SOLD in 2020, Investors Earned 21% Average Annual ROI!
Multi Family – Kansas City, MO
Projected Investor Average Annual ROI: 19%
This investment consists of 384 apartments across 21 buildings and 7.5 acres with control of an 18 acre lake. The property was 93.5% occupied at time of acquisition.
The strategy is to increase rents and eliminate unnecessary ongoing tenant concessions by the current ownership which will be accomplished by injecting $1,700,000 in capital improvements, including a complete remodel of the leasing center, new business center, updated fitness center and model unit in addition to new amenity areas and an upgraded interior package to 20% of the units.
These upgrades will result in an increase of $55 per month in rents per upgraded unit.