Property Fund

Citrus Development Fund 1, LLC

Introduction

Citrus Development Fund 1, LLC (“CDFI”, or the “Company” or the “Fund”) was formed to acquire and develop individual second-generation buildings and commercial real estate opportunities that are class B and verging on class A assets. The Company will seek to acquire, develop and divest high-quality real estate assets to provide participating investors with a real estate focused investment opportunity that, based on Fund Manager prepared projections, should deliver above market return on investment over a 2-5 year period. The Fund is managed by Citrus Development LLC (“Fund Manager” or “Manager”), a Delaware company formed in September 2019 that specializes in real estate asset acquisition, development, and divestment. Citrus Development LLC is managed by a highly experienced property developer coupled with senior finance and global management professionals with over $300m of real estate investment transactional experience in the past ten years.

The Fund’s primary focus is to deliver above market investor wealth through second-generation real estate investment strategies. The management team’s collective abilities and competencies provide a strong foundation for the development of commercial and health care sector properties.

The Fund Managers have created specific criteria for investment and this focus ensures that the end result of both a clear exit strategy combined with a laser focus on investor return mitigates and reduces negative effects on our investors. This experience has also better positioned the Fund to take advantage of market opportunities presented in times of uncertainty. This proactive approach sets Citrus Development Fund 1, LLC apart from our competition.

The Fund’s management team has identified compelling market opportunities for the acquisition of second-generation assets in specific markets within Florida and throughout the USA. This Memorandum will outline the Fund’s proprietary strategies for executing on these opportunities and the pertinent details regarding investment in the Fund’s securities.

Summary of Operations

Once capitalized, the Fund will commence principal acquisition and management operations. The Fund has developed a specific methodology for sourcing, vetting, acquiring, and disposing of real estate assets.

Asset Sourcing

The Fund Manager engages with entities that control multiple properties, such as lenders, servicers, and operators, and seeks to locate assets in their portfolios that would be potential investment opportunities. Concurrently, the Fund Manager employs its value-add methodology that focuses on specific assets that it believes are second-generation attractive investment opportunities that refurbish existing buildings into Medical Office Buildings. The Senior Principals of the Fund Manager have an extensive network of relationships with local and national brokers, lenders, and special servicers developed out of the last several years of commercial real estate industry experience that provides the Fund with superior access to investment opportunities.

The Fund believes that these relationships will allow the Fund to: (i) view many assets before they are marketed to the broader investment community, (ii) consummate transactions with property owners, (iii) achieve favorable pricing by avoiding “auction” processes, and (iv) gain a competitive edge in marketed assets due to a strong track record of closing transactions. The Fund Manager expects that over 50% of the assets acquired by the Fund will be off-market properties sourced through proprietary contacts.

Acquisition Criteria

  • Property Type: Second-generation building / complexes
  • Mostly class “B” and “A” properties that focus on the Healthcare sector
  • Estimated average age of target properties: 5-30 years old
  • Deferred maintenance and rehabilitation expected on specific properties
  • Ideal locations situated near public transportation, shopping, hospitals and employment centers
  • At least 20,000 population or higher within a 3-mile radius
  • Acquisition price of less than 80% of Fair Market Value
  • Upside rent and valuation potential from asset enhancements and re-positioning

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