Limited-partner interests in Fund I (Hollywood + Burbank), Fund II (Sky Village) or both — an IRR product backed by real estate, with cash and installment options, an IRR floor through the Year-11 put, and benefits shown year by year.
You acquire a limited-partner interest in completed, 100% affordable apartment communities. Your return comes from the real estate: federal and California housing credits, depreciation and losses, and a share of cash flow — measured together as a projected IRR through the Year-11 put.
| Projected IRR | Cash | 30% down | 20% down | IRR floor (cash / installments) |
|---|---|---|---|---|
| Fund I · Hollywood + Burbank | 8.5% | 10.5% | 12.5% | 8.5% / 8.0% |
| Fund II · Sky Village | installments | 10.5% | 12.5% | 8.5% / 8.0% |
| Both funds | 9.4% | 12.0% | 14.0% | 9.0% / 8.5% |
| Every $10M you invest returns | Cash | 30% down | 20% down |
|---|---|---|---|
| Fund I · Hollywood + Burbank | $13.3M (1.33×) | $11.2M (1.12×) | $10.8M (1.08×) |
| Fund II · Sky Village | – | $11.1M (1.11×) | $10.7M (1.07×) |
| Both funds | $14.1M (1.41×) | $11.3M (1.13×) | $10.8M (1.08×) |
Total value returned includes housing credits, depreciation and loss benefits (at 21% federal + 8.84% California), cash-flow share and fee rebate through Year 11; any back-end share is upside on top. Investing in both funds earns the highest projected returns and the higher IRR floor. Figures are preliminary and subject to final underwriting and documents.
At Year 11 the investor may sell its interest back to the Fund for an amount that delivers the IRR floor: 8.5% for cash investors and 8.0% on installments in a single fund; 9.0% cash and 8.5% installments when investing in both funds. A contractual Fund obligation funded through a Fund reserve.
A share of net refinance or sale proceeds may be offered on top of the projected returns. It is upside on top of the projections.
Investors come in only after the permanent loan closes and the building is 90%+ occupied Construction and lease-up are complete before investors join.
Depreciation and loss benefits scale with the federal and California rates you choose (model default 21% + 8.84%). Investment amounts and credits do not change. All figures in $ millions. Illustrative; your advisors should confirm your own tax position.
† Eligible depreciable basis of the building (partnership level, excluding land), allocated 99.99% to the Fund. Depreciation benefits to an investor depend on its own tax position and elections.