Property Details
Below Market Rents  Below Market Occupancy  Repositioning Opportunity  NOI Growth 
Asset Profile
Value Add

Bamboo Micro Opportunity Fund II, LP

Midwest US

Multi-Focus Fund
Bamboo Equity Partners St. Louis, MO
Bamboo Equity Partners
  • IRR 18%
  • Equity Multiple 2.5x
  • Hold Period 6Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 6%
  • Stabilized Cash on Cash 6% in Y1
  • First Distribution Jan 2021
  • Distribution Frequency Quarterly
  • Co-Investment 2%
  • Preferred Return 6%
  • Investor Profit Share 75%
  • Asset Profile Value Add
  • Loan-to-Value 75%
  • Current Occupancy N/R

About this Fund

"A 30 million dollar Fund consisting of office and industrial value add Micro Assets (purchase price between 1-10 million). Bamboo focuses on repositioning these Midwestern based undervalued assets through entrepreneurial thinking and deploying strategic capital."

-Dan Dokovic, Bamboo Equity Partners

Fund Type Office & Industrial
Investment Timing Equity called over time
Market(s) Midwest US
Target Fund Size $30MM
Date Opened for Investments February 2020
Amount Raised $8MM
Amount Deployed $0MM
Est. Date of Next Investment October 2020
Est. Date of Initial Distribution January 2021

Top Questions

All answers are provided by the sponsor, Bamboo Equity Partners, or its representatives.

 

What is your investment strategy/business plan for the Fund?

Dan Dokovic, Bamboo Equity Partners: "The Fund intends to make value-add investments in office and industrial real estate properties located primarily in core growth markets of the Midwest. The strategic focus is on micro real estate investments with a purchase price between $1 and $10 million. By using advanced operating and analytical techniques, Bamboo will seek to generate above-average returns in a market segment characteristically occupied by unsophisticated investors and ignored by institutions. This asset class has been proven profitable as a portfolio diversifier that can protect the investor’s downside risk."

"The Fund’s business model includes acquiring Properties that can be repositioned with appropriate renovation and professional management. Bamboo will seek to acquire off market transactions focused on over-leveraged, underutilized, capital-starved and / or mismanaged assets, which may have disengaged owners, or sellers who are motivated or forced to sell for a number of potential reasons."

"Through the Bamboo’s preferred access to deal flow and loyal relationships in the market, the Fund will mainly source its assets through direct contact with a decision maker in a noncompetitive environment.”

 

What are the most important aspects of the fund for investors?

Dan Dokovic, Bamboo Equity Partners:

  • "Focused on micro assets with purchase price between $1-10 million that are ignored by institutional investors."
  • "Per Washington University study, micro assets yielded an 8.76% higher IRR than macro assets. Similarly, the analysis found, with a 99% confidence level, that the change in value of micro assets is 15.97% higher than macro assets."
  • "Midwestern markets also have more favorable cap rates in comparison to the coastal markets where a flood of foreign and institutional investment capital has driven cap rates down to historic lows."

 

What are the risks and how are you mitigating those risks?

Dan Dokovic, Bamboo Equity Partners: "Bamboo Equity Partners uses prudent underwriting to acquire properties well below market. While some funds buy properties below replacement value, Bamboo focuses on the current market value of the property and then buys well below that mark. In addition, Bamboo uses conservative leverage at or below 65% and underwrites exit at the same cap rate as acquisition, removing any speculation if the market is going up or down."

 

How has COVID-19 impacted your business plan?

Dan Dokovic, Bamboo Equity Partners: "COVID-19 has positively impacted Bamboo's plan as distress is first seen in the micro market segments. Institutions with the cash reserves and banking relationships are fairing better in this situation than small investors. The Bamboo Fund is looking to take advantage of the current market disruption."

About this Fund

"A 30 million dollar Fund consisting of office and industrial value add Micro Assets (purchase price between 1-10 million). Bamboo focuses on repositioning these Midwestern based undervalued assets through entrepreneurial thinking and deploying strategic capital."

-Dan Dokovic, Bamboo Equity Partners

Fund Type Office & Industrial
Investment Timing Equity called over time
Market(s) Midwest US
Target Fund Size $30MM
Date Opened for Investments February 2020
Amount Raised $8MM
Amount Deployed $0MM
Est. Date of Next Investment October 2020
Est. Date of Initial Distribution January 2021

Top Questions

All answers are provided by the sponsor, Bamboo Equity Partners, or its representatives.

 

What is your investment strategy/business plan for the Fund?

Dan Dokovic, Bamboo Equity Partners: "The Fund intends to make value-add investments in office and industrial real estate properties located primarily in core growth markets of the Midwest. The strategic focus is on micro real estate investments with a purchase price between $1 and $10 million. By using advanced operating and analytical techniques, Bamboo will seek to generate above-average returns in a market segment characteristically occupied by unsophisticated investors and ignored by institutions. This asset class has been proven profitable as a portfolio diversifier that can protect the investor’s downside risk."

"The Fund’s business model includes acquiring Properties that can be repositioned with appropriate renovation and professional management. Bamboo will seek to acquire off market transactions focused on over-leveraged, underutilized, capital-starved and / or mismanaged assets, which may have disengaged owners, or sellers who are motivated or forced to sell for a number of potential reasons."

"Through the Bamboo’s preferred access to deal flow and loyal relationships in the market, the Fund will mainly source its assets through direct contact with a decision maker in a noncompetitive environment.”

 

What are the most important aspects of the fund for investors?

Dan Dokovic, Bamboo Equity Partners:

  • "Focused on micro assets with purchase price between $1-10 million that are ignored by institutional investors."
  • "Per Washington University study, micro assets yielded an 8.76% higher IRR than macro assets. Similarly, the analysis found, with a 99% confidence level, that the change in value of micro assets is 15.97% higher than macro assets."
  • "Midwestern markets also have more favorable cap rates in comparison to the coastal markets where a flood of foreign and institutional investment capital has driven cap rates down to historic lows."

 

What are the risks and how are you mitigating those risks?

Dan Dokovic, Bamboo Equity Partners: "Bamboo Equity Partners uses prudent underwriting to acquire properties well below market. While some funds buy properties below replacement value, Bamboo focuses on the current market value of the property and then buys well below that mark. In addition, Bamboo uses conservative leverage at or below 65% and underwrites exit at the same cap rate as acquisition, removing any speculation if the market is going up or down."

 

How has COVID-19 impacted your business plan?

Dan Dokovic, Bamboo Equity Partners: "COVID-19 has positively impacted Bamboo's plan as distress is first seen in the micro market segments. Institutions with the cash reserves and banking relationships are fairing better in this situation than small investors. The Bamboo Fund is looking to take advantage of the current market disruption."

Offered By

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Assets Under
Management

Currently
$153MM 20+ assets
Exited
$33MM 10+ assets
Portfolio LTV
76%  
Historical
Realized Returns

Total IRR
26.9%  
Equity Multiple
3.6x  
Annual Cash
12%  
Years Of
Experience

As Principals
30+ years  
In Business
8 years  
Size
28 Staff * Dedicated investor relations
* All information is reported by Bamboo Equity Partners as of 9/1/2020.
Assets Under
Management

Currently
$153MM 20+ assets
Exited
$33MM 10+ assets
Portfolio LTV
76%  
Historical
Returns

Total IRR
26.9%  
Equity Multiple
3.6x  
Annual Cash
12%  
Years Of
Experience

As Principals
30+ years  
In Business
8 years  
Size
28 Staff * Dedicated investor relations
* All information is reported by Bamboo Equity Partners as of 9/1/2020.

Financials

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Location Details

Midwest US

Alice Benner, Bamboo Equity Partners: "Bamboo Equity Partners focuses on the Midwest markets. With the increase in cost of living, internet connectivity, and standard of life, there is an increase in population migration to cities such as Nashville, Kansas City, Minneapolis, and St. Louis. In addition, prices in these markets have not yet reached the highs of the coastal markets."

Documents

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Offering Agreement Documents

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