Wealth development company Caliber has launched a $100 million real estate fund, the Caliber Diversified Opportunity Fund II, which will invest in middle-market U.S. commercial real estate assets that can deliver attractive risk-adjusted return through a combination of current income and capital appreciation.
The fund will follow a similar strategy of the company’s previous commercial fund, which was closed one year early, over-subscribed.
Available to accredited investors directly or by recommendation from Registered Investment Advisors (RIAs), the fund provides a level of direct access to off-market projects rarely seen in the industry. Combining opportunistic strategies to purchase assets below market with in-house real estate services, Caliber leverages its business model to build substantial value in assets with management transformation, ground-up development or effective remodeling, and intelligent financings. Investing from a set of core principles, fund management may pursue a diverse mix of asset classes including apartments, office, hotels, self-storage and other commercial properties without sacrificing performance.
Caliber will invest in $5 million to $40 million projects with very little competition.
“What sets Caliber apart is access to tax-favored real estate investments which are both opportunistic and discounted below market value,” said J Alan Reid, a Caliber investor who previously served as director and CEO of Forward, an investment adviser with more than $6 billion under management. “Having access and building wealth through these diversified types of commercial assets is a significant benefit and are typically not available to most accredited investors.”