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Below is our interview with Adam Anderson, CFP, CRPC, the founder of MRA Capital Partners:
Q: Could you provide our readers with a brief introduction to MRA Capital Partners?
A: MRA Capital Partners is an emerging Hybrid Private Equity Fund with the focus of delivering investment returns and income from strategic real estate investments and asset-based lending. The Fund seeks to provide long-term income with the potential for earning capital appreciation, offer a lower correlation to stocks and bonds thereby creating a potential inflation hedge.
At MRA Capital Partners we are asset class agnostic and we actively pursue acquisitions and joint ventures of valued add and cash-flowing Commercial Real Estate development & redevelopment throughout the United States. The Fund seeks Capital Appreciation & Income potential from long-term real estate investments such as: Multifamily, Student Housing, Senior Living, Supermarket-anchored, Investment-grade-Retail, Office, Medical, Industrial, Mixed-use, Storage, Land Development, Hotels.
MRA Capital Partners Lighthouse Fund provides short-to-medium term alternative lending for property acquisitions, construction, bridge loans and recapitalization of existing assets. We lend to experienced and well-capitalized builders, developers & real estate investors. Investors in The LightHouse fund seek a high rate of current income with very little interest rate risk.
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Q: Who makes your investment committee?
A: The committee is lead by Adam Anderson and is comprised of 3 additional members as well as outside advisors with over $4.5B of investment and transaction experience. Marco Lima CFP, Dalton Chandler, and Paul Plemenos are all committee members. Unanimous approval is required by committee members to approve a new real estate investment project.
Q: Why do you see income potential in commercial real estate market?
A: Commercial Real Estate is unique In that it behaves differently when compared to traditional stock, bond or mutual fund investments. There are many different types of commercial real estate investments which may also perform differently than other real estate investments. MRA Capital Partners invests for cash flow first and appreciation second. The ability to earn attractive yields or high cash on cash returns is one of the main reasons we invest in real estate. When underwriting our investments in real estate projects we give the most attention to the current and potential income an investment can produce. Additionally, we have the ability to increase rents over time which are usually contractually built into lease agreements. Currently we are seeing cash on cash yields over 8% on average but in some cases they are much higher. As long as the properties remain occupied, these cash yields should remain relatively consistent and should increase over time to help keep pace with inflation. Our investors find this attractive especially In the current rising rate environment.
Q: Can you tell us something about your Lighthouse Fund? What exactly is it?
A: The Lighthouse Fund was established to help investors take advantage of the growing opportunity to invest in short term high yield asset backed loans. The unique profile of these carefully underwritten loans may provide the investor with a higher risk adjusted return than traditional fixed income investments while securing their principal with the hard asset of real estate.
We have Long standing relationships with loan originators, direct lenders and underwriters has provided MRA Capital Partners with the opportunity to diversify the portfolio by reaching borrowers throughout the United States. These relationships have produced over $40M of loan requests since April 2018. MRA services all loans in house and builds personal relationships with borrowers. Thorough underwriting, low LTVs, cross collateralization and short maturities help keep delinquency rates low while providing a hedge against rising rates.
Borrowers are experienced and well capitalized real estate investors, developers and builders with proven track records. All loans must pass MRA’s internal due diligence process and unanimous approval from the MRA Capital Investment Committee is required prior to funding a loan.
We target loans that have maturities between 6-36 months at rates between 8-14%. We offer Investors an 8% preferred return while securing their investment with the hard asset of real estate.
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Q: What does the future hold? Where is the company headed?
A: We recently launched a customized online investor portal where investors can view and subscribe to our offerings, review documents and statements, and view and track progress on their account. Our goal is to bring a transparent online experience to the private equity world that’s similar to what you may see on more traditional types of investments. Our goal is to raise an additional $50M by year end.
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