Investing in a managed real estate fund provides diversification away from stocks, bonds, and other traditional capital market investments. The new Portus Equity Builder Fund offers investors the opportunity to receive substantial profits with a targeted annual rate of return of 16 to 21 percent over a 10 to 12-year period, which is substantially higher than other real estate funds.
"The private real estate investment market is emerging to provide qualified investors with an attractive option for investing in real estate and Portus is one of the first companies to capitalize on this market," said Grant Barnhill, founder and president of Portus Funds. "What sets us apart from other companies is our commitment to partner with our investors in order to provide them the best possible returns, which happen to be almost double that of our competitors."
For an individual looking to invest in real estate, there are many advantages to investing in a real estate private equity fund rather than purchasing property directly or investing in a Real Estate Investment Trust (REIT). REITs are traded on major exchanges just like stocks and are susceptible to the fluctuations of the publicly traded market. Another option is purchasing real estate directly; however, collecting a profitable return requires real estate market expertise and the time to manage the property.
The Portus Equity Builder Fund I offers investors the opportunity to invest in an exclusive product, the Boutique Apartments, which does not currently compete directly with any other established multi-family residential category. Targeted to middle-income professionals, Boutique Apartments are distinctive, upscale apartment properties located near downtown Denver. Due to the success of Boutique Apartments in the Denver area, Portus plans to rollout the Boutique Apartment concept in major cities across the United States, including Northern California, Texas and New Mexico by late 2005.
The investment strategy of the Portus Equity Builder Fund is to acquire older apartment buildings in urban areas and renovate them using upscale design amenities of modern loft developments. This approach is a departure from the traditional strategy in which investors have renovated multi-family properties with bland, traditional building materials. Portus Funds differentiates itself by purchasing apartment buildings at reduced prices and renovating them with arts-oriented themes, such as photography and water, while utilizing cutting edge, eco-friendly building materials.
"I am confident in my investment in the fund mainly because of the strong management team and performance history," said Alan Wyngarden, one of Portus' first investors. The predecessor firm to Portus, Barnhill Capital, earned investors an average return of 60.5 percent with its real estate investments over an eight-year period. "I believe the Boutique Apartment category to be a strong, unique offering in the Denver market and I look forward to the projected return of 16 to 21 percent."
Portus Funds has a large opportunity to purchase properties at a discount and increase profit margins for investors, as sale prices for potential properties have recently fallen by approximately 3% over a one-year period, according to local real estate market reports. In addition, a significant number of older apartment complexes near downtown Denver have been converted to condominiums, thus increasing the market opportunity for the Boutique Apartment product.
According to the third quarter Denver Metro Area Vacancy and Rent Survey from the Apartment Association of Metro Denver, the average rent per square foot of similar apartment units in Denver County is $1.13 per square foot. Portus is able to command higher rents of $1.72 per square foot compared to similar-sized apartment units and maintain 100% occupancy due to the location and unique nature of the Boutique Apartment properties.
Portus Funds is a private real estate investment management company that acquires and manages real estate investments on behalf of its investor clients.