CHICAGO, Jan. 29, 2020 /PRNewswire/ -- Fundamental Real Estate Investment Partners ("FREIP"), a real estate investment and asset management firm focused on portfolio creation and proprietary investment opportunities across the U.S., is pleased to provide an operational update to current and prospective partners.
During the second quarter of 2019, FREIP commenced investment of its initial pooled investment vehicle, Fundamental REIP Fund I LP (the "Fund", or "Fund I"). Since that time, the Fund has demonstrated impressive growth, acquiring a total of 9 properties through the end of 2019, with several additional properties already under contract and expected to close in early 2020.
Fund I has focused on aggregating a portfolio of 100% occupied, single tenant properties on long-term leases with contractual rent escalations and solid credit characteristics. Tenants are primarily in the early education and healthcare services sectors, businesses that generate highly durable cash flows, are recession and "Amazon" resistant, and are in short supply in the real estate investment market.
The portfolio is geographically spread across core markets in North Carolina (Raleigh), Indiana (Indianapolis), Illinois (Chicago) and Utah (Salt Lake City) and is expected to be further diversified as FREIP deploys additional investor capital.
During the third quarter of 2019, the Fund entered into a warehouse line of credit with its financing partner, Wintrust Financial Corporation, a leading bank and trust company in the Midwestern United States. This credit facility further enhances the Fund's liquidity and ability to efficiently execute acquisitions across the US.
On a macro-basis, the triple net lease ("NNN") market continues to perform. We believe capital appreciation is being driven by a general undersupply of quality investment product combined with a deep and growing pool of yield-oriented market participants, consisting of publicly traded Real Estate Investment Trusts ("REIT's"), 1031 exchange buyers/sellers, and private real estate income funds.
Paul Simcox, Chief Executive Officer and Managing Partner of FREIP, commented, "We are pleased to have delivered a strong 2019 for our investors and partners. The acquisition pipeline remains robust, and the opportunity set remains in line with our stated strategy for Fund I of growing a quality income portfolio by investing in healthcare and service-oriented triple net lease assets. We head into 2020 with the expectation of continuing the pace of the Fund's growth, further increasing distributions above our current 7% annual rate, and continuing to adhere to our specific investment criteria."
About Fundamental Real Estate Investment Partners
Fundamental Real Estate Investment Partners is a Chicago based, privately held real estate investment and asset management firm focused on portfolio creation and proprietary investment opportunities in multiple sectors across the US.
The firm drives its investment returns by focusing on off-market acquisition pipelines, targeting properties and strategies that demonstrate attractive risk adjusted returns; can generate operational and exit value through portfolio consolidation; and have the ability to deliver durable cash flows through multiple performance scenarios.
The firm is currently deploying capital out of Fundamental REIP Fund I LP, a closed-end investment vehicle designed to capitalize on attractive risk-reward situations in the single tenant triple net lease market (NNN).
Fundamental is an affiliate of NorthHaven Capital Group – www.nhcgroup.ca.
For further information please see FREIP's website at www.fundREIP.com or contact Paul Simcox, Chief Executive Officer (psimcox@fundreip.com) or Cory Capland, CFA, Senior Associate (ccapland@fundreip.com).
Forward Looking Information
The information presented on (or directly accessible from) this page may contain forward-looking statements. Forward-looking statements involve known and unknown risks, which may cause our actual future results to differ materially from expected results. These statements relate to future events or future financial performance that relate to Fundamental Real Estate Investment Partners, FREIP Fund I LP, or any other current or future affiliated entity. Any statements that are not statements of historical fact (including without limitation statements to the effect that the Company or its management "believes", "expects", "anticipates", "plans" (and similar expressions) should be considered forward looking statements. There are a number of important factors that could cause Fundamental Real Estate Investment Partners' (and affiliates) actual results to differ materially from those indicated by the forward looking statements, investment returns are not guaranteed. Fundamental Real Estate Investment Partners disclaims any obligation to update any forward looking statement. This press release is not intended to, and does not, constitute an offer to sell or the solicitation of an offer to buy any securities.
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