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The Fund

Arabella Real Estate Fund

%
IRR – Exit Year 4
8-%
Cashflow – Year 1

Introduction – Arabella Capital

Who is Arabella Capital?

Founded in 2017, Arabella Capital is a Real Estate Investment & Development company which focuses on a opportunistic strategy. Since inception, Arabella has participated in both new construction & value-add opportunities. Arabella’s current portfolio consists of Build to Rent communities, self-storage facilities, multifamily, mixed-used developments, and select short term vacation rentals throughout the Southeast. The Arabella Capital Team possesses 150+ years of combined real estate investment and development experience.

What Does Arabella Capital do?

Arabella Capital utilizes the wealth of experience from our team to invest in real estate and develop assets. The Arabella Capital team manages the lifecycle of each project which includes site selection, entitlements, land development, construction management, asset management, and disposition.

The Arabella Real Estate Fund

What is the Arabella Real Estate Fund?

This fund is 10 years in the making. The fund is an open-ended General Partner Fund vehicle that will invest in residential and commercial real estate projects throughout the sunbelt region. The fund will utilize Arabella Capital’s existing portfolio as well as deploy capital into new investment opportunities. Arabella Capital is contributing its current portfolio of assets which includes land that is purchased, entitled, and ready for development to the Arabella Real Estate Fund. The portfolio also includes projects that are currently under construction. This fund has a target raise of $25 million, with an annual distribution of 8% – 12%distributed quarterly, beginning in Year 1. In Year 5, the Arabella Real Estate Fund is projecting to deliver a 40%+ IRR to the investor.

What is the target Raise of the Fund?

The Arabella Real Estate Fund has a target raise of $25 million but can go up to $50 million if oversubscribed.

The Fund has 2 share classes:
Class B Shares: Minimum investment of $250,000
Class C Shares: Minimum investment of $50,000
For both classes of shares, the fund has a minimum holding period of Three (3) years from the date of sale.

Who can invest?

We are raising capital from both Accredited Investors (accreditation is verified) and Institutions.
 
Accredited Investor is defined as: earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, or earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year.
 
An Institutional Investor is defined as a company or organization that invests money on behalf of clients or members.

What is the Investor Level Returns for the Offering?

Annual Distributions: The Arabella Real Estate Fund will distribute an 8%– 12% annually, beginning in Year 1. Distributions will be paid out on a quarterly basis. Investors can expect to receive their first distribution at the end of the quarter following your initial investment.

Investor Internal Rate of Return (Investor IRR): After the 3 year holding period, the investor can expect to achieve an IRR of 25% in year 4.

When will I receive distributions?

The end of the quarter, following the quarter of your initial investment.

What makes this fund different?

Acquisition Fees

The acquisition fee is the fee general partners (GP’s) charge to Limited Partners (LP’s) for successfully sourcing and acquiring a real estate property that fits into the LP’s investment criteria. In the Case of Arabella our acquisition fees range from 2% – 3% of the land purchase price. The is a one-time fee, paid at closing by the JV equity partner.

Development Fees

For development projects there is generally a development fee for the project, paid to the sponsor for managing the development process as a service to the LP investor. This is usually based on the total hard costs associated with the horizontal development of the project. In the case of Arabella, this fee is 5% of the land development budget paid in monthly installments over the land development period.

Construction Management Fees

Once a project begins vertical construction, the sponsor (Arabella) begins collecting Construction Management fees for managing the vertical construction of a project. This fee is typically charged on the vertical construction hard costs associated with a project ranging from 2.5% – 5%.

Promoted Interest

An advance given to the GP on the LP’s profit after the initial waterfall payments of the preferred return and capital investments are made. We are giving 100% of our promoted interest earned to our fund investors as Income.

Properties Contributed

Arabella is contributing a portfolio of 11 properties to the fund with a total capitalization of $451 million to the Arabella Real Estate Fund.

Reporting

What is the Net Asset Value?

The Net Asset Value of a fund is the assets of a fund less the liabilities of a fund. It represents the net value or net worth of the fund and/or the net value of the issued shares to investors.

How is the Net Asset Value calculated?

Net Asset Value is calculated by taking the total value of an asset, minus any outstanding debt and the cost of any fixed or planned capital expenses.

Why is the NAV Important?

The NAV calculation is important because asset values drive the current and future investor level returns. Arabella has decided to offer our current share prices at a discount compared to the true NAV and value of our portfolio. Since the initial launch of our fund, the value of our portfolio has increased substantially, primarily due to land appreciation, entitlements, and unlocking value through development.

What type of reporting will be provided to monitor my investment?

The Company will provide (i) Quarterly operating reports, (ii) Approved Annual Business Plan, including budget, (iii) annual financial statements, certified by a third-party independent accounting firm. (iv) Quarterly NAV calculation.

Minimum Investment for share classes

Class B Shares: Minimum investment of $250,000.
Class C Shares: Minimum investment of $50,000.

Fund Projects

Luxury Garage Condominiums

Syndicating
Target Raise Amount: 2.5MM
Raised 50%
IRR: 30.02%
Equity Multiple: 2.18x
Time Frame: 38 Months

You can achieve this IRR by investing in the Arabella Real Estate Fund.

IRR: 25.57%
Equity Multiple: 1.74x
Time Frame: 38 Months

You can achieve this IRR by investing directly in this project. Direct investment is available for both accredited & sophisticated investors. This investment opportunity is a 506 B.

+/- 10 acres of land entitled for self-storage development. Located just minutes from Dawsonville Square, the project will consist of 587 storage units consisting of climate, non-climate, covered, and open parking.

Acquired – March 7, 2024
Fully Funded
100%
IRR: 35.0%
Equity Multiple: 2.39x
Time Frame: 2 Years

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 50 acres located on Sanderson Road in the Huntsville, Alabama. The business plan encompasses developing a raw land parcel into 114 completed lots and selling the completed lots to a National Homebuilder (buyer). Upon the land purchase, the sponsor will have a forward purchase contract in place with the National Homebuilder to purchase the…

Acquired – March 7, 2024
Fully Funded
100%
IRR: 71.35%
Equity Multiple: 1.75x
Time Frame: 8 Months

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 14 acres located on Sanderson Road in the Huntsville, Alabama. The business plan encompasses developing a raw land parcel into 54 completed lots and selling the completed lots to a National Homebuilder (buyer). Upon the land purchase, the sponsor will have a forward purchase contract in place with the National Homebuilder to purchase the…

Fully Funded
100%
IRR: 21.2%
Equity Multiple: 2.43x
Time Frame: 3 Years

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 6 acres of land zoned for self-storage development. The location of the site has commands heavy vehicle traffic and offers high visibility to Owens Cross road. The project will consist of 870 units of climate and non-climate-controlled storage units. The anticipated delivery of the project is Q1 of 2024.

Closed Q1 2024 – Sold
Fully Funded
100%
IRR: 40.9%
Equity Multiple: 3.66x
Time Frame: 3 Years

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 6 acres of land zoned for self-storage development. The location of the site has commands heavy vehicle traffic and offers high visibility to Owens Cross road. The project will consist of 870 units of climate and non-climate-controlled storage units. The anticipated delivery of the project is Q1 of 2024.

Fully Funded
100%
IRR: 17.2%
Equity Multiple: 1.97x
Time Frame: 5 Years

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 21 acres of land zoned for residential use. The parcel of land is located in the Arabella Village mixed-use development on the high growth corridor of interstate 75. The project will consist of 420 market rate apartments featuring a pool, gym, dog park, and green space. The project will deliver in the Fall of…

Closed Q1 2024 – Sold
Fully Funded
100%
IRR: 57.5%
Equity Multiple: 1.44x
Time Frame: 2 Years

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 128 acres of entitled land zoned for residential use. The gated community will consist of 63 estate lots ranging from 0.5 to 1 acre lots with custom built homes. The anticipated completion date of the community is set for fall of 2024.

Now Syndicating
Fully Funded
100%
IRR: 32.9%
Equity Multiple: 1.75x
Time Frame: 2 Years

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 103 acres of land zoned for residential and commercial use (C-PUD). This mixed-use project will consist of 12 outparcels, anchored retail, residential and commercial development. The land parcel is located on a newly built exit and conveniently located on the high growth corridor of Interstate 65. The scale of this project will be the…

Phase 1 Completed
Fully Funded
100%
IRR: 26.0%
Equity Multiple: 2.08x
Time Frame: 4 Years

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 44 acres of land zoned for residential use. The parcel of land is located in the Arabella Village mixed-use development on the high growth corridor of interstate 75. The project will consist of 245 townhomes featuring a pool, clubhouse, dog park, and green space. The project will deliver in the Fall of 2024.

Acquiring Phase 3 – Q1 2024
Fully Funded
100%
IRR: 44.0%
Equity Multiple: 3.17x
Time Frame: 2 Years

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 82 acres of entitled land zoned for residential use. The property will consist of 338 single family detached homes. The project will have a full amenities package featuring lake access with a dock, 72 boat slips, pool, clubhouse, and a dog park. Located on the scenic Lake Lanier, the community is surrounded by natural…

Phase 1 Closed – 12/23
Fully Funded
100%
IRR: 56.9%
Equity Multiple: 5.49x
Time Frame: 3 Years

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 38.5 acres of entitled land located in Savannah, GA. This build-for-rent community will consist of 142 single-family detached homes featuring a pool, cabana, and dog park. The project will benefit from Savannah’s fast-growing population and diverse mix of industry that will drive household formation in the area in the coming years. Nestled near major…

Fully Funded
100%
IRR: 154.5%
Equity Multiple: 11.93x
Time Frame: 1 Year

You can achieve this IRR by investing in the Arabella Real Estate Fund.

+/- 82 acres of entitled land zoned for residential use. The property will consist of 338 single family detached homes. The project will have a full amenities package featuring lake access with a dock, 72 boat slips, pool, clubhouse, and a dog park. Located on the scenic Lake Lanier, the community is surrounded by natural…

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