USA TODAY | Kyle J. Russell Contributor

For both seasoned and new investors, the current market can feel overwhelming, filled with the potential for volatility and unpredictability. The traditional approach often includes a 60/40 portfolio, which sees investors dividing their assets between equities and bonds, respectively. This is done to hopefully reduce risks and build long-term wealth. But for current investors, this usual method may not be enough considering factors like high interest rates, which decrease bond prices, and stock market volatility.

Because of the potential need for a new investment plan, private alternative investments are seeing a surge. Options for this include private equity, real estate, private debt, and commodities. Investors are increasingly turning to these options to diversify and protect their portfolios. Founder and managing principal of F Street, Scott Lurie, highlights the benefits of this investment type. He says that private alternative investments are less directly tied to changes in the overall market and can provide a cushion against volatility.

The Shift Away from Public Markets

According to Lurie, the efficiency of public markets, while beneficial for stability, often caps the potential for significant outperformance. “In public markets, everything is immediately priced in, which is a testament to their efficiency but also a limitation for growth,” Lurie explains. This is where private alternatives come into play, providing access to investments outside the typical stock and bond markets, such as private equity, private credit, and real estate.

F Street’s Innovative Approach

Founded in 2009, F Street has been at the forefront of integrating private alternatives into broader investment strategies. The firm specializes in private equity, credit, and real estate, aiming to build a robust portfolio with better potential to thrive under economic pressures. “Our approach is about understanding deeper market forces and leveraging less tapped areas to secure stronger returns for our clients,” says Lurie.

Recently, F Street, in collaboration with CKO Real Estate, launched the VAM Fund 1 LLC, a value-added multifamily equity investment focused on the burgeoning renter market spurred by rising home mortgage rates. F Street also launched two new multifamily development opportunities. Lurie notes, “This initiative reflects our commitment to seizing timely market opportunities, as we look to build nearly 300 new units to enrich southeast Wisconsin’s housing landscape.”

PRESS RELEASE

Milwaukee, WI – [April 22, 2024] – F Street is pleased to announce the launch of VAM Fund 1 LLC, a multifamily investment vehicle offered exclusively to accredited investors. VAM Fund 1 LLC focuses on acquiring distressed multifamily assets, renovating the units, and leasing units at market rates to generate substantial returns for investors.

Experienced Partners Lead the Way
F Street has partnered with Shai Wolkowicki and Chikoo Patel of CKO Real Estate, real estate industry veterans with extensive experience in the multifamily asset class, to operate and manage VAM Fund 1 LLC. Their expertise and past successes complements F Street’s proven track record, ensuring a strong foundation for the fund’s success.

 

Capitalizing on Distressed Assets
VAM Fund 1 LLC represents the first in a series of Value-Add Multifamily (VAM) investment funds planned for launch over the next 12-24 months. The strategy capitalizes on the opportunity to acquire distressed multifamily assets at a discount, unlocking their value through renovations and strategic re-leasing.

Hyde Park and South Shore Take Center Stage
VAM Fund 1 LLC offers a unique opportunity to invest in the acquisition of 492 multifamily units across 21 properties in Chicago’s Hyde Park and South Shore neighborhoods. This is your chance to own a fractional equity interest in this multifamily portfolio that are positioned well to benefit from current economic conditions.

 

Investor-Centric Approach
F Street’s investment thesis prioritizes investor returns. In fact, the structure of this investment ensures that all free cash flow is distributed to investors until their investment is returned in full. By acquiring properties at a discount, renovating units, and re-leasing at market rents, VAM Fund 1 LLC aims to:

• Increase net operating income and asset value
• Generate equity for investors
• Refinance the investment to return a significant portion of invested capital within the first 24-30 months
• Manage the property and provide ongoing cash flow distributions to investors.

 

Join Us in This Exciting Opportunity
F Street and CKO Real Estate are seeking to raise $15.3 million for VAM Fund 1 LLC, with the sponsor group itself contributing at least $1.5 million. The offering is open to accredited investors only, with a minimum investment of $50,000.

Interested investors are encouraged to visit www.fstreet.com to invest or contact F Street to discuss the investment in more detail. Don’t miss out on this chance to be part of this promising investment opportunity!

 

Contact:
Josh Lurie
Principal / VP Investor Relations
josh@fstreet.com
(414) 315-3190