Ballast Rock Group Announces 2022 Year-End Performance of its Sunbelt Real Estate Funds Ballast Rock Group anticipates launching its third Southeast-focused workforce multifamily fund in Q1 2023.
Charleston, SC
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January 05, 2023 10:10 AM Eastern Standard Time
Ballast Rock Group, the diversified investment management firm, today announced 2022 year-end performance of its two multifamily real estate funds.
The Sunbelt Multifamily Fund I, which was launched in 2019, began dispositions in early 2022 by selling four of the nine assets held by the fund. These sales generated realized gross internal rates of return of 85% (2.17x Multiple on Invested Capital, “MOIC”), 61% (3.0x MOIC), 50% (2.52x MOIC) and 35% (2.3x MOIC), respectively, on each asset, for combined gross proceeds of $60,450,000. The 593 apartment units involved were acquired at an average cost of $53,583 per unit and sold at an average cost of $101,939 per unit.
Ballast Rock anticipates exiting the remaining five assets in Fund I opportunistically over the next 12 to 18 months.
Sunbelt Multifamily Fund II, which launched in 2021, will close on its final asset this month, which will mark the completion of the acquisition stage for the $105,363,000 total asset fund. In 2022, the fund acquired 471 units across three assets for $56,970,000.
Current income generation in the portfolio is ahead of Ballast Rock’s pro-forma expectations.
“We are pleased that our performance in 2022 validated our thesis that we have the right experience to acquire, manage and oversee value-add projects across our portfolio of workforce multifamily real estate assets,” said Thomas Carroll, Chief Executive Officer of Ballast Rock Group. “This performance is a shared success, since all of our principals invest our own capital alongside our investors, aligning our interests, and delivering safe, clean, and affordable homes for residents in our communities.”
Ballast Rock Group focuses on the workforce housing market throughout the Southeast, creating tax-shielded, diversified real estate funds with a positive social impact. Ballast Rock differentiates itself with high performance, frequent communication, detailed reporting, and ready access to the management team.
Ballast Rock anticipates launching its Sunbelt Multifamily Fund III in Q1 2023.
About Ballast Rock Group
Ballast Rock Group is an integrated investment management company specializing in delivering risk-adjusted returns, accurate, and timely advice, high quality frequent reporting, and direct access to management. Ballast Rock Group operates Ballast Rock Asset Management, Ballast Rock Private Wealth, and Ballast Rock Capital. Ballast Rock Asset Management comprises Ballast Rock Real Estate, which includes the firm’s Sunbelt multifamily real estate funds, and Ballast Rock Ventures, comprising venture capital and private equity teams. Ballast Rock Private Wealth is a registered investment advisor, with a focus on alternative strategies. Ballast Rock Capital is awaiting approval to become a FINRA-registered broker-dealer. Ballast Rock is committed to being a driver of positive change. The diversity of our team members brings valuable new perspectives to our industry for the benefit of our stakeholders and the broader community.
Important Disclosure
The information contained in this press release has been prepared by Ballast Rock Holdings LLC (“Ballast Rock”) without reference to any particular reader’s investment requirements or financial situation. Past performance is not indicative of future results. Potential investors are encouraged to consult with professional tax, legal, and financial advisors before making any investment into a private offering of securities. An investment in private securities would be speculative and would involve a high degree of risk. Investors must be prepared to bear the economic risk of such an investment for an indefinite period of time and be able to withstand a total loss of their investment. Please consider carefully the investment objectives, risks, transaction costs, and other expenses related to an investment prior to deciding to invest.
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