Scroll down to view the May 9th Webinar with Chestnut Healthcare Partners
Chestnut Healthcare Partners, LP ("CHP") is a real estate investment fund formed to acquire and develop stabilized class A medical office buildings to create a compelling portfolio of properties that will provide investors with secure, non-correlated income from a property sector that benefits tremendously from demographic and healthcare trends. The partnership acquires properties directly and also invests in a joint venture with an institutional investor to acquire medical office buildings. The partnership intends to generate annual cash flow returns of 7% to 9% as a percentage of investor capital and then either sell the properties individually or as a portfolio to generate an expected IRR of 12% to 14%. The partnership utilizes low leverage for its investments to minimize volatility and decrease risk.
Available to Registered Users
Available to Accredited Investors:
The target markets into which the fund intends to make its investments will be a function of the economic fundamentals of the market, the healthcare real estate investment market and the General Partner’s particular market expertise and relationships. In general, the fund will endeavor to invest in markets with strong economic fundamentals driven by such things as governmental and business investment, attractive and improving demographics, high barriers to entry reducing the risk of competition, and investment market liquidity enabling a timely and certain ability to exit the investment.
Available to Accredited Investors:
Below are some of the most frequently asked questions about this offering.
Investors coming into the fund after the first closing on December 31, 2015 owe to existing investors 8% per annum on the amount that the existing investors are diluted. As an example, if the fund had $10,000,000 of committed capital with 50% called at the first closing, and then had another closing in a year with another $10,000,000, the existing investors would be diluted 50%. In other words, the new investors would contribute $2,500,000 of capital, all of which would go back to the existing investors. The new investors would then also pay to the existing investors 8% on the $2,500,000, or $200,000. The thought here is two-fold. First, the new investors join the fund on the same terms as the existing investors, albeit with a higher basis. At the end of the fund all $100,000 investors, whether investing at the first or last closing, will receive the same gross distributions. The existing investors are also getting capital back that they don't necessarily want and at a lower return than they expect from the fund. And the new investors have the benefit of seeing a lot of the deals in the fund. In very general terms, for a $100,000 investor today the 8% interest charge that would be paid to existing investors would amount to around $3,500. This amount, though, would be offset by prior distributions made to existing partners. The fund has made distributions to date equivalent to 4% cumulative return and those distributions will offset the interest charge by roughly 50%. As a result the net charge to come in at a subsequent closing in this example would be about $1,750.
The first projected distribution is scheduled for May 2018.
Distributions are scheduled to go out on a quarterly basis.
Yes, non-US residents are welcome to apply. Please contact the sponsor for more details.
RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.
RealCrowd offerings are open to accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.
RealCrowd is a marketplace that connects investors with qualified sponsors. We strive for transparency and impartiality. For this reason, we do not participate in any offerings on our site.
Send Chestnut Real Estate and/or RealCrowd a message. If you have a question about this offering ask Chestnut Real Estate. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.
In the meantime, you can create an account to view detailed information about Chestnut Healthcare Partners, LP.
In the meantime, please review the offering documents and financials.