New Real Estate Debt Fund Set To Launch This Week

A new private market debt fund offering will be available to investors beginning Jan. 18. 

The Real Estate Debt II LP 2024 offering is a diversified debt fund of approximately $100 million in active loans. The primary objective of the investment is to preserve capital while generating cash flow for investors. 

Offering sponsor RD Advisors' strategy is to selectively invest in debt with conservative loan-to-value ratios after a stringent borrower vetting process to mitigate risk. Fund managers will focus on shorter-term debt with an average timeline of around one year.

RD's average loan size in the fund is approximately $1 million, and the range is from $200,000 to $10 million with an average interest rate of 12%, which is expected to generate consistent cash flow for investors. 

With a focus on loans within the Northeast, including Massachusetts, Rhode Island, New York, New Jersey, Pennsylvania, Ohio, New Hampshire and Maine, the fund is well-diversified consisting of 79 loans across residential, commercial, mixed-use and land asset classes. 

Founded in 2017, RD Advisors has financed, acquired, renovated, and refinanced over 280 loans totaling more than $260 million in total principal amount. Of the 280 funded loans, over 200 have been paid off. The group has over $100 million in assets under management concentrated in the Northeast.

The minimum investor contribution is $25,000. The offering will be available to prospective investors on the Crowdstreet platform beginning Jan. 18. A live webinar will be hosted on the platform at 4 p.m. ET on Jan. 18.

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Image courtesy of Crowdstreet.