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Marketmaker Real Estate Opportunity Fund 1 LP (in formation) — Page 1 of 6
Real Estate Advisor: |
Cushman & Wakefield |
Fund Outline
The Fund, conceived by Marketmaker Capital, Equus Asset Management, and Cushman & Wakefield, is designed to give owners of significant and well positioned properties in the United States, Canada, the Caribbean , Mexico, Central America and Latin America an opportunity to diversify their holdings and mitigate their downside risk.
The current economic environment and credit crisis has become a serious obstacle for the visionaries who create resorts, single family subdivisions, master planned communities, commercial properties and the like. Many property owners and developers are finding themselves with ideally suited properties that currently cannot attract capital, either equity or debt, and as a result are stalled. Faced with an uncertain market, and the prospect of years to come of little capital availability and diminished market demand, owners and developers are questioning what to do next.
The Fund will consider these properties. It will take in sufficient properties to allow it to raise equity and debt to support the properties during the fallow period. The minimum property size that will be accepted into the fund is $5 million in valuation. Under certain circumstances the fund will consider acquiring a portion of an owner’s holdings in a project. The Fund expects to purchase cash-flowing properties as well, using the leverage created by the initial contributed properties and available cash. In turn, the second round of acquisitions becomes the basis for sustainable Fund operations.
The initial closing will take place when $100 million in properties can be placed in the fund. There is no ceiling on the value of properties that can be placed into the fund, nor the Fund's asset size.