Fund Strategy
We invest in commercial real estate debt
Spectra Capital’s investment strategy focuses on private commercial real estate credit investments in niche opportunities underserved by traditional lenders.
We have developed deep expertise in analyzing, underwriting, and structuring debt transactions secured by first position-mortgages. We have also developed a proprietary network of clients and referral partners which allows us to secure consistent nationwide deal flow.
Structure
Commingled Pool, Delaware LP
Target Net Return
20%+
LP Annual Preference
10%
Excess Return
>10%
Management Fee
0%
Dividend Distributions
Quarterly
Redemptions
Quarterly
Investment Structure
Minimum Investment
$250,000
Target Fund Size
$200MM
Feeder Funds
Delaware, Puerto Rico, BVI
Gross and Net Performance To Date, Spectra Velocity Fund I, LP
| Year | Type | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total Return |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2023 |
Gross |
|
|
|
.99%* |
2.62% |
2.43% |
2.66% |
2.40% |
2.62% |
1.26% |
1.67% |
2.08% |
20.40% |
|
Net |
|
|
|
.99%* |
2.62% |
2.43% |
2.62% |
1.86% |
1.91% |
0.92% |
1.16% |
1.42% |
16.69%** |
|
|
2024 |
Gross |
2.08% |
1.93% |
|
|
|
|
|
|
|
|
|
|
|
|
Net |
2.08% |
1.93% |
|
|
|
|
|
|
|
|
|
|
|
2023
2024
Gross
Net
Gross
Net
Jan
2.08%
2.08%
Feb
1.93%
1.93%
Mar
Apr
.99%*
.99%*
May
2.62%
2.62%
Jun
2.43%
2.43%
Jul
2.66%
2.62%
Aug
2.40%
1.86%
Sep
2.62%
1.91%
Oct
1.26%
0.92%
Nov
1.67%
1.16%
Dec
2.08%
1.42%
Total
Return
20.40%
16.69%
Performance and Risk Disclaimer
* Represents 11 Days invested, in a partial month that included allocation of a full month of administrative expense
** Only applicable to the investors that have been with the fund since inception. Returns for some investors may be higher or lower than indicated net returns due to the timing of the Preferred Return on their individual investment, which is prorated as applicable for the amount of time the investor was a Limited Partner of the Fund.
Typical Loan Structure
Eligible Locations
Nationwide
Focus Areas
Multifamily, Self-Storage, Flex Space, Warehouse, Light Manufacturing, Hospitality, Infill, Mixed Use, Retail
Transaction Size
$500,000 to $10,000,000
Loan Programs
Bridge, Acquisition, Refinance, Construction
Due Diligence Deposit
Upon acceptance of term sheet, borrower to remit a deposit for all third-party reports, legal, and documentation expenses (these can vary depending on the loan request)
Security
1st Lien Deed of Trust or Mortgage
Origination Fees
2-6%
Exit Fee
1%
Recourse
Recourse Required
Repayment
I/O or Monthly P&I
Loan Term
3 – 36 months
Closing Time
Under 30 days
Key Investment Facts
Minimum Investment
$250,000
Asset Class
Real Estate
Investor Qualifications
Open to Accredited Investors as defined in Regulation D of the U.S. Securities Act of 1933
Fees
Origination Fees
The first 2% to the GP, split evenly between Fund and Sponsor thereafter
Performance Fee
10% preference, then split evenly between Fund and Sponsor thereafter
Key Relationships
Administrator
Legal
Auditor & CPA Services
Transactional Bank
Loan Servicing
Benefit
How to Benefit from a High Interest Rate Economy
As these types of investments have a high coupon and are often sold at a discount, investors can earn a higher return on their investment than they would with traditional real estate investments.