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

2023

Gross

Net

Jan

Feb

Mar

Apr

.99%*

.99%*

May

2.62%

2.62%

Jun

2.43%

2.43%

Jul

2.66%

2.27%

Aug

2.40%

1.86%

Sep

2.65%

1.91%

Oct

1.26%

0.92%

Nov

1.67%

1.16%

Dec

2.08%

1.42%

Total Return

20.40%

16.69%**

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%
2023
Net
.99%*
2.62%
2.43%
2.62%
1.86%
1.91%
0.92%
1.16%
1.42%
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.

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