In March 2016, VHGF purchased a minority interest in the Patchen Oaks property based on an equity valuation of $1,066,428. The apartment project was sold on April 20th with net proceeds of $4,812,188, which represents a fund level return of 317% IRR, or approximately 4.5X multiple.
“This is a strong return for our investors, even after adjusting for risk,” commented Virtua principal Quinn Palomino. “The Patchen Oaks investment is part of our high growth series of funds and syndications, which are designed to produce capital gains for our investors.”
VHGF invests in commercial real estate, usually as preferred equity or common equity. Currently, realized investments in the fund have produced a fund level IRR of over 100%. Virtua specializes in deep value, off market transactions. Many of the high growth investments have a restructuring component.
“It’s very important for investors to understand the risk profile of each investment,” said Derek Uldricks, President of Virtua Capital Management. “In particular, aggressive growth investments should be carefully evaluated in order to determine their suitability for an individual portfolio.”
About Virtua Partners:
Virtua Partners is a private equity firm specializing in commercial real estate. Virtua sponsors a variety of funds and commercial real estate projects across the country. Investment products include fixed income, growth to income, growth, and aggressive growth. Through its affiliates, Virtua provides debt and equity origination, asset and property management, workout consulting, development, and fund management.