Sureste Capital (SC) operates as an asset manager and has over $500 million of multifamily assets in its portfolio in Sureste Properties LLC. SC focuses on delivering consistent growing cash distributions and quarterly increases in NAV. The work as an asset manager focuses on improving NOI and value in the properties, while growing the portfolio through off market acquisitions and distressed opportunistic buys.
A strength for SC is the teams’ proven ability to source off- market deals and manage the renovations and lease up work. SC is also the general partner for SD in new development for BTR which creates new long-term developments to address the supply shortage in quality rental homes, townhomes, and garden style units. This pipeline is over $ 600 million and growing and will be delivered over a three-year period starting in 2024. Also, large developments like the Nashville hotel, condo, townhome and music venue ($300 million project) are owned by Sureste Properties. This adds substantially to the growing equity in Sureste Properties which is managed, and majority owned by SC.
A core competency of Sureste is its ability to source off market deals, analyze the values, acquire and finance and then do the turnaround work on properties. This involves the analysis of the underlying value of the real estate in multiple states and for multiple types of real estate, and calculate the time and capital needed to either sell or complete a turn around. Sureste will purchase bank and finance senior and junior notes, equity positions, and do the legal and administrative work in addition to the real estate operational work.
We partner with top private equity firms that specialize in value add, build to rent, and distressed. Our partners have invested more than $ 100 million and achieved above projected returns in every investment.
Our portfolio has large and significant relationships with lenders such as Fannie Mae, Freddie Mac, Arbor Finance. To date we have borrowed over $500 million and have an excellent track record and highest ratings from our lenders.
WE invest our own capital in every property and often acquire 100% of the property. The equity investment is by Sureste Properties LLC which serves as our private REIT. This is supplemented by DCM US Multifamily which raises capital in listed and traded bonds in Europe.
Sureste Credit is a mezzanine fund that will invest between $1-$5 million in multifamily properties by a secured and subordinate loan or preferred. This risk return will be equity returns while maintaining a secured position and margin of safety between property value and total leverage. We are capitalized on Sureste Credit as per the diagram.
Sureste Opportunity Fund is focused on acquiring bank and lender notes and properties that are in need of capital, operational turnaround, or simply an opportunity to acquire a great asset at a favorable price.
We are not geographically constrained and will also look at other real estate asset types as part of the banknote or opportunity. We have the ability to underwrite and then close, sell or turn around, and then stabilize and refinance. Our capitalization to close quickly for cash is through this permanent capital vehicle Sureste Opportunity Fund which is funded with our own capital. We are capitalized as per the diagram.