Latest Investment Fund Takes Advantage of Recent Federal Reserve Interest Rate Increases
GRAND RAPIDS, Mich., Jan. 17, 2023 /PRNewswire/ — Northwind has announced the release of its latest short-term investment fund, Northwind Income Opportunity Fund, a new $50M equity vehicle issued under Regulation D, Section 506c to provide short-term financing on existing multifamily properties.
Designed to capitalize on recent interest rate increases from the Federal Reserve Board, the fund will provide intermediate funding for quality cash flowing multifamily projects throughout the U.S. which are then quickly sold to large financial institutions. Timing and higher interest rates are the catalyst for this increased market demand, providing a unique opportunity for investors.
“Rate increases have created a strong demand for private capital solutions,” said Chip Cummings, Managing Director, “We are focusing on pre-sold notes with a rapid turn time, which practically doubles the investment yield.”
The Fund, managed by several industry veterans, will focus solely on existing multifamily properties which are in the process of restabilization or renovation, with lower LTV’s and a traditional end financing exit. The short turn time and fund controls on assets, which are collateralized by first-position senior secured mortgages, help to not only mitigate risk but also allow for greater investment yields and liquidity options with monthly payouts.
“Our management team has been involved in commercial finance and project management for more than 25 years,” added Brian Mingham, Director and CEO at CFSI Loan Management, a provider to hundreds of banks and financial institutions nationwide. “Multifamily properties are the lowest risk asset class, and financing demand is projected to increase over 30% this year alone.”
Limited to accredited investors, the Fund features a 9.00% preferred yield with 50% profit-sharing and monthly distributions. Interested parties can find additional details, PPM and full disclosures at www.NorthwindFund.com.
About Northwind –
With a 25-year track record, Northwind has been involved in more than $4 Billion in real estate financing transactions, and overseen several investment funds. Headquartered in Grand Rapids, MI, they are a registered, licensed and bonded lender for transactions nationwide. They are also an approved provider for loans to Fannie Mae, Freddie Mac, US Dept of HUD, Veterans Administration, and the Small Business Administration. NMLS #2062458.
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SOURCE Northwind Income Opportunity Fund