US Capital Advises Golden Pacific Capital, LLC on $10MM Real Estate Fund

US Capital Advises Golden Pacific Capital, LLC on $10MM Real Estate Fund

The business comes at a good time as Kansas City has been rated as a top-10 market for single-family residence investments by RealtyTrac. – Jeffrey Sweeney

US Capital Partners Inc. has been engaged as the exclusive advisor for GPC Fund I (Priority Reserve), LLC, a special purpose vehicle established to invest $10MM into GPC Fund I, LLC (the “Fund”). The Fund is managed by Golden Pacific Capital, LLC (“GPC”) and focuses on the residential real estate market located in and around the Kansas City metropolitan area.

The Fund’s investment strategy is to buy, renovate, rent, and eventually sell a large portfolio of single-family homes, likely to a larger institutional investor with a lower cost of debt capital and generally an appetite to purchase stabilized portfolios at greater than retail market value. The Fund typically purchases homes at a 10–25% discount.

The Fund has already raised $7MM in equity and has deployed $18MM into 128 properties (110 rented, 11 being marketed, and 7 in rehabilitation or foreclosure eviction). The stabilized portion of the portfolio is generating a cash-on-cash return of approximately 9%, which is currently being reinvested into further acquisitions. GPC continues to have success in identifying, acquiring, renovating, leasing, and managing the Fund’s assets, including critically the ability to collect rents and keep maintenance under control.

New investments will be applied pro rata to buying into the existing pool as well as funding further growth. As such, this presents an opportunity to buy into an existing portfolio without any step-up in costs. By raising further equity, GPC will continue to…

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