Arixa Access Fund I

  • Summary

    Summary

  • Strategy

    Strategy

  • Market

    Market

  • Team

    Team

  • Record

    Track Record

Arixa Access Fund 1

Investment Overview

  • Summary

    Summary

    Arixa Overview

  • Strategy

    Strategy

    Real Estate Lending

  • Market

    Market

    West Coast Real Estate

  • Our Team

    Team

    Seasoned real estate professionals

  • Track Record

    Track Record

    Consistent Returns

Investment Summary

Fund Type

fund

Real Estate Lending

Targeted Return

9.5%+

Distributions

Quarterly

Min. Fund Investment

$50,000

Close Dated

January 2020

 

Arixa Investment & Company Overview

Arixa Enhanced Income Fund, L.P. (“Arixa”) is seeking to raise up to $160 million in capital. Arixa is one of California’s leading private real estate lenders with over $1 billion in loans to single family, multifamily and small balance commercial real estate projects. Arixa delivers attractive, consistent returns, while preserving capital through liquid investments. Arixa provides its members with a preferred return of 9% and has achieved a greater than 10% net IRR per year for its investors over the past 5 years.

Arixa Access Fund I LLC (the “Fund” or “Access Fund”) is raising capital through a “feeder fund” structure by aggregating up to 100 investors at a minimum investment of $50,000 each and will invest the capital into Arixa. The Access Fund provides access to invest in Arixa, for which a direct investment would require a minimum investment of $200,000.

  • Performance

    5-Year returns 10.31%
    No Losses on Loans

  • Experience

    25+ Years as Principals
    13 Years in Business
    24 Employees

  • Investments

    $306 Million AUM
    $1.3 Billion originations to date
    Portfolio LTV of 61%

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Key Considerations

  • Access to an Institutional Fund - the Fund provides individual investors with access to a $160 million institutional private lending fund named Arixa Enhanced Income Fund, L.P.
  • Low Minimum Investment - The Fund has a low minimum investment of $50,000 per investor. The fund will aggregate the capital raised with other investors allowing it to meet the $200,000 minimum investment amount if you invest directly into Arixa.
  • Low Risk – Risk is reduced through senior, first lien positions, with LTVs typically below 65%
  • Proven Track Record – Arixa has an historical net of fees IRR of 10.31% over the past 5 years
  • Zero Losses – Arixa has incurred no losses to date
  • Satisfied Customers – 78% of all clients are repeat borrowers

Access Fund & Arixa Service Providers


  • Administrative, Tax and Accounting Services

  • Arixa Admin Service Provider


  • Arixa Accountant

Arixa Overview

One of the Western Region’s Leading Residential Real Estate Lenders. Launched in 2014, Arixa Enhanced Income Fund, LP provides private lending solutions to experienced borrowers who acquire, renovate and resell properties, primarily in coastal California markets.

  • COMPANY FOUNDED

    2006 in Los Angeles

    • Arixa is one of California’s leading private real estate lenders, with a growing presence in the Western Region
    • Offering highly customized, short-term (6-24 months) financing solutions to residential real estate developers
  • ORIGINATIONS SINCE INCEPTION

    +$1.3 Billion

    • Our full-service lending and loan-servicing platform minimizes risk
    • Our full-service lending and loan-servicing platform has consistently delivered strong risk-adjusted returns for investors, in a low-rate environment
  • LIQUID INVESTMENT FUNDS

    Objectives

    • The Company’s funds seek to provide steady income, while preserving capital and maintaining a margin of safety, through liquid investment vehicles

Investment Strategy

  • Founded in 2006, Arixa has developed a robust base of repeat borrowers, a strong referral network and an experienced origination and operations team capable of meeting borrowers’ needs. Arixa investors benefit from experienced portfolio managers who have collectively deployed more than $1 billion in capital. Arixa investors participate in a highly diversified portfolio of senior secured loans, with a high margin of safety that has historically produced annualized returns in the 9-10% range, after fees.
  • Arixa Enhanced Income Fund make short-term loans secured by real estate to professional developers who purchase single-family homes for renovation and resale. Arixa Enhanced Income Fund borrows money from the bank and uses that money along with investors’ capital to make more loans than would be possible with investor capital alone.
  • Arixa investment funds are income-oriented vehicles designed to preserve principal and generate higher income returns than what is available from publicly traded income-oriented asset classes such as bonds. Investors interested in generating passive and consistent income while protecting principal would benefit from investing in Arixa investment funds.
  • Arixa lends between 75% and 85% of the lower of cost or value of a single family home. The overwhelming majority of Arixa’s loans have terms between six and 12 months. Arixa has made loans as long as 18 months and as short as one month. The manager plans to use 50% leverage for a debt-to-equity ratio of 1:1. Since Arixa began in 2010 we have originated over 600 loans and have had three defaults. Due to the margin of safety built into each of these loans, all defaulted loans ended up being profitable investments for the fund.

Why First Trust Deed Investing

  • Income

    Professional single family home renovators have special requirements, such as short funding timelines, that traditional institutional lenders are unwilling to accommodate. This provides an opportunity for private lenders who cater to this market to command premiums on their capital. In today’s market Arixa’s lending funds generate current income from 7-10%.

  • Principal Protection

    Arixa’s loans are secured by a first lien on a house. Borrowers typically provide 20%-25% of the capital needed to buy the house. Additionally professional developers enhance the value of the collateral through renovations that they fund with their own equity.

  • Diversification

    Real estate including real estate debt is an important component of a well diversified portfolio. An allocation to first trust deeds can reduce overall portfolio volatility and increase returns, as first trust deeds are not well correlated with either the stock or bond markets.

Investment Philosophy

One of the Western Region’s Leading Residential Real Estate Lenders

  • Undervalued Assets

    Arixa seeks to invest where they see undervalued assets (such as buying homes from banks in the wake of the financial crisis); however, they do not pursue investments whose returns are based on the timing of a recovery in asset values, which they consider too hard to predict and too volatile.

  • Strategy

    Arixa likes strategies that are more difficult to execute for larger investment management companies, which allow them to earn above average returns for their investors. Excessive amounts of capital ruin good investment opportunities so Arixa avoids highly competitive markets whenever possible.

  • Limited Risk

    Arixa would rather give up some of the “upside” of an investment in order to limit their risk. Arixa is fundamentally risk-averse, long-term focused investors.

  • Expertise in Niche

    Arixa seeks to make investments in products, people and markets that they know well. This allows them to have a strong point of view about value, risks and the potential rewards of each investment.

  • Economic Trends

    Arixa actively pursues a deep understanding of long term demographic and housing trends and to take advantage of these trends when they invest. One such trend is the increased demand among Millennials to live in more urban areas with shorter commutes rather than having a larger home and yard with a longer commute. Arixa also sees a limited supply of high-quality properties in very desirable urban neighborhoods where demand is strongest. Arixa’s point of view on these trends drives many of their real estate investment decisions.

  • Customer Needs

    When necessary to serve their customers, Arixa is willing to build out infrastructure and to develop vertically-integrated platforms. This goes hand-in-hand with serving harder to reach niche markets and making a large number of smaller investments.

Arixa Market Overview

The state of the housing market on the west coast drives the need for Arixa’s services.

Market Considerations

  • Los Angeles, the Bay Area and other cities have a dramatic shortage of housing.
  • The solution must include both for-sale and for-rent housing.
  • The shortage will worsen over time as the best jobs concentrate in these areas.
  • Redevelopment is needed across every neighborhood, not only in affluent areas.
  • Local developers are well-suited to redevelop small parcels – large projects alone will not address the need.
  • Similar dynamic is present in other Western Region coastal cities.

Fund Performance, Loan & Property Locations

California`s Housing Shortage Continues

Case Study

Valley Village, CA (Single Family)

Investment Overview

  • Purchase Price: $700,000
  • Construction Cost: $579,700
  • Sold: $1,757,500
  • Track record of success with borrower
  • Well located property
  • Borrower with significant equity in the project
  • Conservative price/SF based on comps
  • Reasonable construction budget
fund

Case Study

Los Angeles, CA (Single Family)

Investment Overview

  • Purchase Price: $982,000
  • Construction Cost: $786,744
  • Sold: $3,150,000
  • Experienced developer, although new to Arixa
  • Very reasonable comp valuations for property, both As-Is and After-Renovation
  • Low leverage on initial loan
  • Relatively short time for renovation, to allow repayment of Arixa`s Loan
fund

Case Study

Los Angeles, CA (Single Family)

Investment Overview

  • Purchase Price: $792,000
  • Construction Cost: $170,061
  • Sold: $1,385,000
  • Track record of success with borrower
  • Reasonable comps for After – Repair Value
  • Relatively ease of renovation, leading to significant increase in useable square footage
  • Highly experienced developer/ guarantor with meaningful equity in the property
fund

Case Study

Long Beach, CA (Multi-Family)

Investment Overview

  • Purchase Price: $1,100,000
  • Construction Cost: $189,735
  • Sold: $1,800,000
  • Highly experienced repeat borrower with Arixa
  • Reasonable Loan-To-Cost
  • Half of renovation budget funded by borrower
  • Replace Arixa`s loan with long-term financing after stabilizing rents
fund

Arixa Executive Team

Arixa has assembled a team of motivated real estate professionals with a combined 25+ years. We execute a disciplined approach at all times, but remain agile with the ability to capitalize on opportunities as they arise. The company culture fosters teamwork and encourages innovation. We are relentless in our pursuit of performance excellence.

  • Jan Brzeski

    Jan Brzeski

    Managing Director and Chief Investment Officer

  • Gregory Hebner

    Gregory Hebner

    Managing Director

  • Jelena Verny

    Jelena Verny

    General Counsel

  • Jerry Feinstein

    Jerry Feinstein

    Senior Vice President

Managing Director and Chief Investment Officer

Mr. Jan Brzeski is the Chief Investment Officer and a Managing Director of Arixa Capital Advisors, LLC, and Crosswind Financial, which together are one of California's leading private real estate lenders. He serves on the investment committee for all related fund vehicles. Mr. Brzeski founded Arixa Capital in 2006, and launched its first private lending fund, Arixa Secured Income Fund, in 2010. As of December 31st, 2018, Arixa manages over $300 million in capital across four private lending funds and one residential equity fund. Mr. Brzeski has participated in more than 1,000 real estate transactions, investing over $1 billion on behalf of clients, and has experience managing all aspects of sourcing, structuring, financing, and acquiring investment properties.

Prior to forming Arixa Capital, Mr. Brzeski was Vice President of Acquisitions at Standard Management Company, a private real estate investment firm founded by Samuel K. Freshman. While at Standard Management, Mr. Brzeski’s responsibilities included identifying properties to acquire, underwriting, and negotiating to purchase income property and land. In addition, Mr. Brzeski originated loans throughout coastal California from funds he managed and purchased properties that included shopping centers, industrial projects, agricultural and development land.

Before joining Standard Management, Mr. Brzeski was a successful entrepreneur, co-founding and serving as CEO of STV Communications, Inc., a media services business that he sold in 2000. Previously, Mr. Brzeski worked at Goldman Sachs & Co. as an Investment Banking Analyst, where he contributed to initial public offerings, secondary stock and bond offerings and mergers and acquisitions of leading technology companies.

Mr. Brzeski has been the primary organizer of an annual Real Estate Investment Roundtable at UCLA’s Anderson School of Management for the past 13 years. Mr. Brzeski is a regular speaker, moderator and panelist at forums, such as ALTSLA, IMN and a guest lecturer at UCLA’s Anderson School of Management.

Managing Director

Mr. Hebner is a Managing Director of Arixa Capital Advisors, LLC and Crosswind Financial. He is a fund manager of the Arixa Secured Income Fund and the Arixa Enhanced Income Fund, and Crosswind Venture Fund and serves on the firm’s investment committee. Mr. Hebner has primary responsibility for the strategy and operations of the firm’s vertically integrated lending platform and the acquisition and management of the single-family home portfolio held by the Arixa vehicle that purchases, renovates and operates residential rental properties.

Mr. Hebner previously founded and served as the Chief Investment Officer for Community Rebuild Partners, LLC, a residential real estate investment firm that has purchased, renovated and resold more than 220 properties. Over his investment career, Mr. Hebner has participated in more than 1,000 real estate investments and deployed over $1 billion in capital on behalf of investors. He is a frequent contributor and speaker on real estate investing and mortgage lending and has been featured in the Wall Street Journal, New York Times, Bloomberg TV and the Los Angeles Business Journal.

Mr. Hebner regularly teaches courses on residential real estate investing at UCLA Extension’s Real Estate Program. Prior to joining Arixa Capital, Mr. Hebner was the President of NuView Financial Services, a provider of loss mitigation services for the residential mortgage industry, and served as the Chief Operating Officer of NuView’s parent company, Sorento Capital, a private asset management firm focused on consumer-related financial services. Mr. Hebner previously served as the CEO of Relocation.com and was the Senior Vice President of Consumer Media Services at Move, Inc.

Earlier in this career, Mr. Hebner worked in financial, strategic and operational roles for Price Waterhouse, Premark International and The Walt Disney Company. Mr. Hebner holds a Master of Business Administration from Harvard University and a B.S. in Accountancy from the University of Illinois. Mr. Hebner is a licensed real estate broker in the state of California and holds and NMLS mortgage broker designation.

General Counsel

Ms. Verny is General Counsel for Arixa Capital Advisors, LLC. Jelena has nearly 20 years of legal experience representing and advising public and private companies on a wide range of legal and business issues. Jelena is responsible for advising the company on legal and compliance matters as well as managing outside counsel. Prior to joining Arixa, Jelena was in private practice and worked as the Director of the Business Law Program and Lecturer in Law at UCLA School of Law. Jelena began her legal career as a tax and real estate attorney at Irell & Manella LLP.

Ms. Verny received a B.A. in Business/Economics with a minor in Accounting, summa cum laude, from UCLA, and a J.D. from UCLA School of Law, where she was inducted into the Order of the Coif.

Senior Vice President

Jerry Feinstein is Senior Vice President of Arixa Capital Advisors, LLC. In his current role, he manages and oversees Arixa's Commercial Real Estate lending program. Mr. Feinstein has extensive experience with commercial and residential mortgage origination and underwriting, having served throughout his career as a strategic mortgage banking industry expert, building and growing national mortgage banking sales and operations.

Mr. Feinstein is knowledgeable in all aspects of mortgage banking with a cradle-to-grave understanding of mortgage originations, operations, risk management, and servicing. He has strong experience in mortgage lending, sales of real-estate-owned (REO) properties, sales management and credit, and a strong background in consultative selling. Before joining Arixa Capital, Mr. Feinstein was director of REO Sales at Fannie Mae, where he built the REO bulk sale platform from the ground up. His group sold over 15,000 properties in more than 40 transactions. Before Fannie Mae, Mr. Feinstein co-founded SPREO Capital Partners, a private equity real estate fund created to purchase institutional REO properties.

Mr. Feinstein has held senior-level positions at CJ Smith Consulting, Inc., CBA Commercial, and Silver Hill Financial, where he served as executive vice president, senior vice president and senior director, respectively. As a national account manager at Freddie Mac, he managed the annual purchase and securitization of $15 billion in mortgage assets and negotiated credit, pricing, and structure terms for Freddie Mac’s largest customers. Mr. Feinstein has also managed residential mortgage origination centers for The Bank of New York’s mortgage subsidiary, ARCS Mortgage.

Mr. Feinstein holds a bachelor’s degree in psychology from the University of California, Berkeley, and has earned the Certified Mortgage Banker (CMB) designation from the Mortgage Bankers Association (MBA).

  • Dan Frankel

    Dan Frankel

    Director of Investor Relations and Business Development

  • Doug Cochrane

    Doug Cochrane

    Vice President, Loan Production

  • Dung Phan

    Dung Phan

    Controller

  • Kristina Sawyer

    Kristina Sawyer

    Director of Loan Operations

Director of Investor Relations and Business Development

Mr. Frankel is the Director of Investor Relations and Business Development for Arixa Capital Advisors, LLC. Dan comes to Arixa with over 12 years of investor relations, business development, capital markets and product development experience.

Prior to joining Arixa, Dan served as the Director of Investor Relations for PennyMac Financial Services Inc. (NYSE: PFSI) and PennyMac Mortgage Investment Trust (NYSE: PMT). In his role, Dan managed offerings totaling over $500 million, marketed publicly traded companies through conferences and investor events, and grew relationships with investors and research analysts. Prior to his move to Los Angeles, Dan spent six years with Citigroup in New York City and two years with First Marblehead in Boston. While working for Citigroup and First Marblehead, his roles focused on Capital Markets and Product Development. Mr. Frankel received his B.S. in Economics from the University of Wisconsin and is currently completing his MBA at the University of California, Los Angeles.

Vice President, Loan Production

Mr. Cochrane is Vice President of Loan Production for Arixa Capital Advisors, LLC. Doug comes to Arixa with over 20 years of real estate experience as an award-winning Senior Loan Officer, Underwriter, Appraiser, Project Manager and Investor. Most recently, he served as SVP of Acquisitions & Underwriting for Patch of Land, a pioneering real estate crowdfunding company, where he established all lending guidelines, policies and procedures for the platform. During his tenure, he oversaw the underwriting and due diligence of $100 million in loans. Prior to his move to Los Angeles, he was a Project Manager, leading the support for a new 24-unit residential project and the excavation for a 14-unit condominium project in Boston, MA. For 15 years, he originated and underwrote nearly $300 million dollars in conventional residential and commercial loans throughout the US. During this time, Doug was also an active member of the Massachusetts Legislation & Compliance Committee. As a top performing licensed RE Appraiser, he spent several years specializing in appraising single-family, multi-family and condominium projects throughout New England for some of the largest national Banks. As a real estate Investor, Doug focused on acquiring bank REOs and was responsible for property acquisition, budgeting, contractor estimates and renovation oversight. Mr. Cochrane received his B.A. from Fordham University.

Controller

Mr. Phan is Controller for Arixa Capital Advisors, LLC. Dung comes to Arixa with over 18 years of fund accounting, financial reporting, mutual fund operations and regulatory compliance experience. Dung directs the fund reporting for the Arixa funds and leads the financial accounting and treasury operations for Arixa Capital Advisors.

Prior to joining Arixa, Dung worked for Capital Group Private Markets where he served as Assistant Fund Controller. In that role, he led the fund accounting, performance reporting and client servicing for multi-billion-dollar portfolios of several emerging market private equity funds. Dung received his B.S. in Accounting from the University of Southern California, Leventhal School of Accounting.

Senior Underwriter

Ms. Sawyer is the Director of Loan Operations for Arixa Capital Advisors, LLC and Crosswind Financial. Kristina comes to Arixa with over 18 years of real estate experience. She is responsible for managing the operations team and the day-to-day operations of Arixa Capital and Crosswind Financial, as well as the lending operations for their four real estate funds. Ms. Sawyer is knowledgeable in all aspects of real estate lending, portfolio management, risk management, asset management, and property management.

Prior to joining Arixa she was the Regional Sales Manager for Cabo La Estancia/NRG Financial, a resort property leasing and property management company. Her experience also includes being Resident Manager at Century West Properties, a multi-family project in Marina Del Rey, California, and being Vice President and launching the property management division at Portfolio Properties in Bakersfield, California. Ms. Sawyer holds an A.A. degree from Bakersfield College. She is a licensed real estate agent and notary.

Arixa Enhanced Income Fund, LP Annualized Performance

Unique Real Estate Exposure, with High Relative Returns and Low Volatility.
Arixa’s returns are not highly correlated to equity and fixed income returns.

Arixa Track Record

Arixa Enhanced Income FundGrowth of $100,000

Arixa Track Record

Arixa Access Fund 1 LLC

The following Arixa Access Fund 1 LLC Documents are available to view:

  • Investor Document Package Arixa Access 1 Fund

  • Entity Investor Document Package Arixa Access 1 Fund

  • Arixa 1
    Wire Instructions

  • Accredited Investor Verification Letter

Arixa Income & Growth Fund I

The following Fund Documents are available to view:

  • Executive Overview

  • Investor Presentation

  • PPM

  • Limited Partner Agreement

Arixa Access Fund 1 LLC Terms

Investment Summary

Fund

Arixa Access Fund 1 LLC

Fund Managing Member

CV Manager LLC

Technology Fee

The Fund will pay CV Manager 0.75% (75 basis points) of the Fund capital per year for the management of the Fund.

Administrative Expenses

The Fund will pay CV Marketplace LLC $500 per investor per annum for arranging for the audit, tax preparation, income distributions and communication about the Fund and Arixa.

Organizational Expenses

The Fund will pay CV Manager a one-time fee of $50,000 for organizational and formation expenses.

Minimum Investment Amount

$50,000

Targeted Fund Amount

$5,000,000

Expected Offering Closing

December 2019

Distributions

Quarterly Distributions

Term

4 Years

Administrative Services

The Fund has engaged Assure Services to act as the Fund administrator to provide accounting, tax and payment services for the Fund.

Arixa Enhanced Income Fund L.P. Terms

Investment Summary

Target Size

$150,000,000

Minimum Commitment

$200,000

Withdrawals

12-month lock up period, after that investors may withdraw 25% each quarter

Redemption Fee

None

Preferred Return

9% Preferred Return

Management Fee

1%

Carried Interest

After the Pref Return, 80% to LPs – 20% to GP

Annual Target Returns

9% - 10%

Important Disclosure Statement for the Fund:

This presentation and the information contained herein (the “Information”) is for your internal use only and shall be kept confidential, restricted and proprietary to Arixa Access Fund 1, LLC (“Arixa”). You confirm that you will treat all of the Information as confidential and will take all necessary precautions to maintain the confidentiality of the Information.

No portion of this presentation may be reproduced or used by or distributed to others, at any time, in whole or in part, for any other purpose without the prior written consent of Arixa. Acceptance of this presentation by you constitutes an agreement to be bound by the foregoing terms. In allowing you to view the Information, Arixa undertakes no obligation to provide any additional information or to update, or correct any inaccuracies that may exist in, any of the Information. Arixa shall not have any liability to you or any other person resulting, directly or indirectly, from the disclosure of the Information to you. The Information is not to be distributed directly or indirectly to any person or entity who does not meet certain legal and professional criteria as an Accredited Investor. This Information is not intended to be distributed, and does not constitute an offer or solicitation in a jurisdiction to any person or entity to which it is unlawful to receive such documentation.

Nothing in this document shall constitute an offer of securities for sale in the United States or any other jurisdiction, or form the basis for any contract or commitment. If there should commence an offering of securities by Arixa, any decision to invest in any such offer and to subscribe for or acquire such securities must be based wholly on the information contained in a Confidential Private Placement Memorandum (the “PPM”) issued in connection with any such offer, and not on the contents of this presentation. The PPM will contain material information that is not contained in this presentation, including a discussion of material risk factors that may cause you to lose all or a portion of your investment. If there is any inconsistency between the Information contained herein and the PPM, the PPM will prevail. Some Information contained in this presentation constitute “forward-looking statements”, and are based upon estimates, assumptions and expectations about future events or conditions.

Such forward-looking statements are intended only to illustrate hypothetical results under such assumptions, not all of which are described herein. Actual events or conditions may differ materially from those assumed in developing such forward-looking statements, including due to the risk factors described in the PPM. In addition, not all relevant events or conditions may have been considered in developing such assumptions. Accordingly, actual results will vary and the variations may be material. You should understand such assumptions and evaluate whether they are appropriate for your purposes. Arixa undertakes no obligation to revise any forward-looking statements to reflect subsequent events or circumstances, and you should not place undue reliance on forward-looking statements. Furthermore, past performance of Arixa or the real estate market generally (whether described in this presentation or otherwise) is not a guide to future performance of real estate investments.

This presentation contains case studies and refers to Arixa’s calculations, estimates and projections, based on the strategy executed by Arixa since 2012. Calculations and projections are based on assumptions in the model and include all fees and carried interest, which have been prepared for illustrative purposes only and are not a guide to future performance. Numerous assumptions were used in preparing the case studies, some of which may not be reflected herein. As such, no assurance can be given as to the accuracy, appropriateness or completeness of any particular case study, or whether they reflect current market conditions or future market performance. The case studies should not be construed as either projections or predictions of financial performance, or as legal, tax, financial or accounting advice. The specific characteristics of investments selected by Arixa in the future may differ materially from those shown in the case studies.

Any investment in funds managed by Arixa will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold, directly or indirectly, in or within the United States or to, or for the account or benefit of, any U.S. person, except pursuant to an exemption from or in a transaction not subject to the Securities Act and applicable U.S. state securities laws.

The Information and all information and opinions in it are the property of Arixa. You may not use any portion of this Information except for your personal use, and you may not otherwise distribute any portion of this Information to a third party without the prior written authorization of Arixa. Arixa and the logo Arixa are trademarks of Arixa and you may not use any of the service mark, copyright or other notices (whether or not in this Information for any purpose, or alter, remove or otherwise obscure any of them without the written permission of Arixa or any relevant third party owner.

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Value Add

Risk of Loss
Medium 1
Leverage
60-75% 2
Occupancy Rate
Less than 80% 2
Strategy
Heavy Renovations​/Major Retenanting 2
Stable Tenants
Few​/None 2
Hold Period
1-3 Years 2

1 The Risk of Loss is relative to other investment profiles. There is always a risk of total loss.

2 These are typical attributes for this profile of investment and may or may not represent this particular investment.

Secured Lending Fund

Secured lending funds produce attractive risk-adjusted returns by investing in loans rather than equity. These real estate loans have real estate collateral securing the loan repayment to reduce risk.

Target Return (IRR)

The estimated annual return which includes both the annual cashflow and the sale proceeds prior to fund management fee.

Target Annual Cash

The estimated average percentage annual cash return from the investment.

Estimated Hold

Estimated hold period from investment to realization.

Preferred Return

The preferred return or “pref” is a percentage cumulative return on initial investment that investors must attain prior to the investment manager’s participation in the profits.

Fund Size

ApexOne Fund is raising a maximum of $100,000,000