Preferred Equity Investments
TRE Newton | Denver, CO
Funded March 2021, return realized October 2022. Construction and lease-up of the 52-unit apartment project known as Signalmen Apartments located in the Sloan’s Lake neighborhood of Denver, CO.
AVP Dry Creek | Broomfield, CO
Funded December 2021. Construction and sale of an11-acre, 9-pad flex/industrial project known as Dry Creek Business Park located in the Arista neighborhood of Broomfield, CO.
AVP Royal Plaza | Pueblo , CO
Funded April 2023. Acquisition and renovation of a 100-unit apartment complex, known as Royal Plaza Apartments (currently rebranded Steel Canyon in Pueblo, CO).
APV Lamar | Oxford, MS
Funded June 2024Development of Lamar Phase 5, a 98-unit Class-A multifamily community located in Oxford, MS.
AVP FT Hollow | Blaine, MN
Funded January 2024. Development of Foxtail Hollow, a 76-unit build-to-rent townhome community in Blaine, MN, near the prestigious Lakes of Blaine and TPC Minnesota.
AVP Orchard | Nashville, TN
Funded May 2022, return realized March 2024. Recapitalization of a 112-unit apartment complex, known as Orchard Park Apartments in Nashville, TN.
AVP Domino | Indianapolis, IN
Funded July 2023. Development of a 5-story, 223-unit Class-A apartment complex located 4 miles from downtown Indianapolis, IN.
AVP Mountainside | Birmingham, AL
Funded October 2022, return realized July 2024. Recapitalization of a 196-unit apartment complex, known as Mountainside Apartments in Birmingham, AL.
AVP Lady Lake | Lady Lake, FL
Funded January 2025. Acquisition and horizontal development of commercial pad sites comprising a 50-acre mixed-use PUD in Lady Lake, FL with immediate proximity to The Villages community.
Investments
Why Invest With Us
Direct Sponsor Exerience
The Fund’s Manager has a proven track record as a direct lower/middle market sponsor, and has successfully executed on deals similar to those being pursued by our Sponsor investees. In this regard, we can add additional value to both the lender as well as the Sponsor as a thought leader and problem solver.
Limited Competition
The Fund is specifically focusing on maximum investments of $10 Million, expected to average $5 Million per
investment. The lower middle market has always been thinly capitalized with little access to structured investments.
Most of the preferred equity and mezzanine debt providers operate with guidance of minimum investments of $10
Million (some even higher) resulting in a great opportunity for the fund to create stronger risk-adjusted returns in the
segment we serve.
Capital Need
We believe that the demand for preferred equity has never been greater than it will be over the next 12 months.
- We are currently experiencing very high borrowing rates for short-term bridge debt, projected to peak in February 2024, then slowly declining over the following 12 months
- The most opportune deployment window for the Fund exists when short-term borrowing rates exceed long- term borrowing rates, so the opportunity for the highest risk-adjusted return profile of our investments is right now
- Fund objectives are to deploy as much capital by year-end 2024
- By April, 2025, it is projected that short-term rates will normalize again, decreasing the opportunity for higher return equity investments
- In addition, long-term borrowing is also projected to normalize so Sponsor refinance opportunities should be more readily available to redeem our investments during our investment period and lifecycle of the fund
Why Invest With Us
Armada offers a unique opportunity to invest in preferred equity with distinct advantages that set us apart.
Proven Direct Sponsor Expertise
Our team has an established track record as a direct sponsor in the lower and middle market, successfully executing deals like those pursued by our Sponsor investees. This hands-on experience allows us to add unparalleled value as problem solvers and strategic thought leaders, benefiting both lenders and Sponsors.
Targeting an Underserved Market
By focusing on investments averaging $5 million (and capped at $10 million), we operate in the thinly capitalized lower-middle market, an area overlooked by larger preferred equity and mezzanine providers. This niche positioning creates an exceptional opportunity to achieve stronger risk-adjusted returns while addressing an underserved segment.
Capital
Need
Current high short-term borrowing rates, projected to peak in early 2024, create a prime window for risk-adjusted returns. By 2025, rates are expected to normalize, reducing opportunities for higher returns while increasing Sponsor refinance options. Investing now capitalizes on this optimal market period and future redemption potential.
Who We Are
Armada Venture Partners is a boutique commercial real estate investment firm headquartered in Denver, Colorado. Our leadership team comprises seasoned industry professionals with a proven track record of delivering exceptional, above-market returns. At Armada, we focus on structured preferred equity investments in commercial real estate projects. Our strategic approach enables sponsors to achieve their goals while offering our investors risk-adjusted returns that outperform the market. Our innovative financing structures bridge the divide between senior debt and common equity, offering flexibility and security for both sponsors and investors.
KEY INVESTMENT FOCUS AREAS
New Construction
Supporting ground-up development
with tailored capital solutions.
Value-Add Projects
Funding renovations and repositioning strategies to maximize asset value.
Cash-In Refinances
Addressing equity gaps in today’s
challenging lending environment.
What We Do
At Armada, we focus on structured preferred equity investments in commercial real estate projects. Our strategic approach enables sponsors to achieve their goals while offering our investors risk-adjusted returns that outperform the market.
Key Investment Focus Areas:
New Construction:
Supporting ground-up development with tailored capital solutions.
Value-Add Projects:
Funding renovations and repositioning strategies to maximize asset value.
Cash-in Refinances:
Addressing equity gaps in today's challenging lending environment.
Our innovative financing structures bridge the divide between senior debt and common equity, offering flexibility and security for both sponsors and investors.
Why Invest With Us?
Proven Track Record
Robust Deal Pipeline
Alignment of Interests
Strong Risk Adjusted Returns
Targeted Opportunity in
an Underserved Market
-
Focused on deals requiring sub-$10M equity,
a segment with limited competition. -
Capitalizing on inefficiencies in the lower
-middle market for enhanced returns.
Risk Mitigation
-
Investments designed to withstand up to 20%
project devaluation without loss of capital. -
Structured protections, including step
-through provisions, to preserve investor equity.
Our Performance
at a Glance
With the launch of Fund II, we’re poised to expand our reach and capitalize on emerging opportunities in today’s evolving real estate market.
Fund I:
Closed with $25M raised, exceeding a forecasted 14.46% IRR and delivering 15%+ to investors.
Scythian Real Estate Fund:
Achieved a 29.7% IRR and 1.53x equity multiple in 26 months.
Get Involved
Whether you’re seeking a reliable avenue for passive income or a trusted partner to diversify your portfolio, Armada Venture Partners offers a disciplined, results-driven approach to real estate investing.
Advantages
For Our Investors
- Our funds provide regular passive income in the form of the preferred dividends to investors on a quarterly basis.
- Preferred equity offers reduced risk compared to common equity, providing stable returns and protecting investors against market fluctuations or underperformance.
- The Fund offers fixed returns and timelines, ensuring clarity and reliability for investors’ income planning and budgeting needs.
- The Fund offers favorable tax treatment, with LP income as long-term capital gains and potential benefits from passthrough depreciation.
- The Fund’s lender recognition ensures direct collaboration to cure defaults, preserving investments and diluting subordinated common equity.
- The Fund offers passive investors diversification across sponsors, property types, and markets, without day-to-day management involvement.
- The Fund receives capital and preferred returns before common equity, ensuring security, priority, and reduced capital loss risk.
For Our Sponsors
- Preferred equity diversifies Sponsors’ capital stack, balancing financing, reducing risk, and addressing capital shortfalls in purchases or renovations.
- Preferred equity bridges financing gaps, enhancing project viability when senior debt or common equity is limited by risk or constraints.
- Preferred equity can ease senior debt financing, as lenders see it as enhancing project stability in today’s cautious environment
- Preferred equity offers a cost-effective solution, preserving ownership stakes while providing necessary capital for long-term real estate projects.
- Preferred equity offers flexible structures, allowing Sponsors to customize terms like return rates, current pay, and exit timelines for projects.
Why Work With Us
Your Trusted Real Estate Partner
Armada Real Estate is more than just an agency we’re your trusted advisors, dedicated to understanding your unique needs and aspirations. Our personalized approach ensures a tailored experience, whether you’re a first-time buyer, seasoned seller, or investor. Let us earn your trust and exceed your expectations.
AVP Opportunity Fund Investment Criteria
1
Investors should carefully consider the investment objectives, risks, and
expenses of the fund.No sales shall be made until the Fund and the potential investor enters into a subscription agreement for theFund’s securities.
2
No general solicitation will be conducted and no offering literature or advertising in any form will or may be employed in the offering of any securities of the Fund except for a subsequent private offering memorandum.
3
The receipt of this document is anacknowledgement that the information contained herein will be maintained in confidence and will not be disclosed to any third party, duplicated, or used without the express written consent of the Fund.
4
Prohibited. Each person, by accepting delivery of this document, agrees to return it and all other documents received by such person to the Fund upon demand.
5
Except as otherwise noted, this document describes the state of the Fund and its plans as of the date here of. This document may include various forecasts and forward-looking statements regarding the plans of the Fund.
6
This is neither an offer to sell nor a solicitation of an offer to buy. No offers shall be made to a potential investor until the Fund supplies the prospective investor .
Our Partners
