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Origin Investments Launches $350M Multifamily Credit Fund
Chicago-based private real estate manager Origin Investments has launched a $350-million Multifamily Credit Fund designed to give qualified purchasers a passive income stream. The fund’s low-risk income stream comes from conservatively leveraged Freddie Mac K-Deal and SBL B-Piece certificates backed by cash flowing and geographically diversified multifamily mortgage loans. The fund targets a total net annual IRR of 8%-10% and a 6%-8% net annual yield.
Additionally, the fund is structured with a REIT subsidiary, which under provisions of the Tax Cuts and Jobs Act provides a 20% tax deduction on all taxable dividends, regardless of an investor’s income. The REIT structure also blocks Unrelated Business Taxable Income for tax-exempt investors, including IRAs.
“Origin’s Multifamily Credit Fund underscores our firm’s ability to conceptualize, build and deliver an expanding range of sophisticated investment opportunities and strategies to meet investors’ goals and objectives,” said Origin co-CEO David Scherer.
- ◦Financing
