Center Creek Investment Funds
Overview
Center Creek Housing Funds offer an innovative, market-driven approach to Real Estate investing – creating a platform of single-family rental (SFR) homes that offer near-term cash flows and long-term appreciation to our investors while providing quality, affordable housing for our customers. Our dual focus enables Center Creek to deliver real social impact to our residents while providing our investors with strong risk-adjusted returns, a hedge against rising interest rates and inflation, and downside protection in recessionary markets.
Center Creek Richmond I and II partner with Center Creek Homes (CCH) to rehabilitate distressed homes and build infill residential housing on vacant lots, providing quality houses for first-time homeowners, strengthening neighborhoods, and driving increased tax revenues for local municipalities while providing attractive returns to investors.
| Fund | Strategy | Investment Returns | Status |
|---|---|---|---|
| Center Creek Housing Fund III | Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on 4-8 southeast markets including Atlanta, Birmingham, Tampa, Jacksonville | Projected 15%+ net IRRs to equity investors | Currently open to new institutional and CRA investors |
| Center Creek Housing Fund II | Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on Atlanta, Birmingham, and Tampa | Projected 15%+ net IRRs to equity investors | Closed to New Investors |
| Center Creek Richmond II | Renovate distressed properties and build new infill homes for sale to owner-occupants | Projected 20-30%+ net IRRs to investors | Closed to new investors |
| Center Creek Housing Fund I | Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on Jacksonville, FL | 10 straight quarters of 4-5% annualized dividends 14.2% net IRR to investors* |
Wound down in April 2019 |
| Center Creek Richmond | Renovate distressed properties and build new infill homes for sale to owner-occupants | Projected 15-18%+ net IRRs to investors | In wind down |
| Fund |
|---|
| Center Creek Housing Fund III |
| Strategy |
| Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on 4-8 southeast markets including Atlanta, Birmingham, Tampa, Jacksonville |
| Investment Returns |
| Projected 15%+ net IRRs to equity investors |
| Status |
| Currently open to new institutional and CRA investors |
| Fund |
|---|
| Center Creek Housing Fund II |
| Strategy |
| Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on Atlanta, Birmingham, and Tampa |
| Investment Returns |
| Projected 15%+ net IRRs to equity investors |
| Status |
| Closed to New Investors |
| Fund |
|---|
| Center Creek Richmond II |
| Strategy |
| Renovate distressed properties and build new infill homes for sale to owner-occupants |
| Investment Returns |
| Projected 20-30%+ net IRRs to investors |
| Status |
| Closed to new investors |
| Fund |
|---|
| Center Creek Housing Fund I |
| Strategy |
| Buy, renovate, and hold affordable single-family rentals for cash flow and appreciation with focus on Jacksonville, FL |
| Investment Returns |
| 10 straight quarters of 4-5% annualized dividends 14.2% net IRR to investors* |
| Status |
| Wound down in April 2019 |
| Fund |
|---|
| Center Creek Richmond |
| Strategy |
| Renovate distressed properties and build new infill homes for sale to owner-occupants |
| Investment Returns |
| Projected 15-18%+ net IRRs to investors |
| Status |
| In wind down |
*Pro Forma returns adjusted for the fee structure of CCHFII
Current Investment Funds
Center Creek Housing Funds II and III are focused on building an affordable SFR platform at scale. CCHFII has acquired properties in markets in Georgia, Florida, and Alabama, and CCHFIII will be active in these same markets with plans to expand to additional geographies across the Southeast.
Center Creek buys houses that are affordable to working families and low-and-moderate-income (LMI) residents, a target market that is severely underserved. Single-family rental homes currently make up 58% of all rental housing in the United States. While many people automatically think affordable housing means apartment buildings, Center Creek believes the crisis in affordable housing cannot be solved without focusing on SFR – the overlooked half of the market. Center Creek is committed to proving that institutionally managed single-family rentals are a critical and impactful new strategic approach to providing and preserving affordable housing.
Investments in CCHFIII qualify as Public Welfare Investments and provide CRA credit for banks.
Center Creek Richmond II (CCRII) is the investment fund that drives Center Creek Homes, our development platform for renovating and building new homes. CC Richmond II and Center Creek Homes reclaim vacant land and improve highly distressed properties to provide new tax revenue for the City, high quality entry-level homes for individuals and families, and strong returns to our investors. CCRII has created an innovative public-private partnerships with the City of Richmond that can drive compelling investor returns and strengthen communities at the same time.
Track Record Investment Funds
In Center Creek Housing Fund I (CCHFI) we proved that single-family rentals (SFR) can be bought, renovated, and managed effectively in an institutional manner, and delivered strong returns to our investors. CCHFI built a portfolio of SFR in Jacksonville FL, and provided a 14.2% net IRR to our investors*. Moreover, 100% of CCHFI’s rental units were affordable to residents at 80% of Area Median Income (AMI). Center Creek wound down CCHFI in April 2019.
Center Creek Richmond (CCR) was created to demonstrate proof-of-concept while building our capability to renovate distressed properties and develop new infill properties for first-time home-buyers. CCRI successfully proved the market opportunity and Center Creek’s ability to perform and is currently in wind-down mode after laying the foundation for Center Creek Richmond II.
*Pro Forma returns adjusted for the fee structure of CCHFII