Indvestia Capital LLC, a private equity real estate firm based in Downers Grove, Illinois, announced the launch of Indvestia Fund I. This new investment vehicle aims to raise $5 million. It offers accredited investors a chance to invest in commercial real estate across the Midwest. The fund focuses on properties that can increase in value and generate high income.
The new fund seeks to achieve an 8% annual cash-on-cash return and an 18% internal rate of return (IRR). These targets are set by investing in specific types of properties and debt. The fund’s strategy includes value-add retail, medical office properties, and high-yield debt instruments. This approach targets stable income and growth potential.
Key Takeaways
- Indvestia Capital launched a new $5 million real estate fund.
- The fund targets 8% annual cash-on-cash returns and 18% IRR.
- Investments focus on value-add retail, medical office, and high-yield debt in the Midwest.
- The minimum investment is $25,000, allowing access to multiple projects.
- Indvestia Capital has a history of delivering profitable outcomes without capital calls.
New Fund Targets Midwest Commercial Properties
Indvestia Fund I is structured to provide accredited investors with broad exposure to institutional-quality commercial real estate. The fund allows participation in several projects across different asset classes and geographic markets. This diversification is managed through one tax-efficient structure.
The minimum investment for Indvestia Fund I is set at $25,000. This threshold makes it accessible to a wider range of accredited investors. The firm stated that this approach helps bring sophisticated investment opportunities to more individuals.
Fund Details at a Glance
- Target Raise: $5,000,000
- Preferred Return: 8%
- Target IRR: 18%
- Hold Period: 5 years (with optional one-year extension)
- Asset Classes: Retail, Medical Office, Value-Add, High-Yield Debt
According to Indvestia Capital, three investments have already been identified for the new fund. These potential investments are currently in various stages of due diligence. This means capital can be deployed quickly once the fund is fully operational, allowing investors to start earning returns sooner.
"Our goal is to bring Wall Street-level investment opportunities to Main Street investors," said Vick Mehta, Founder and Principal of Indvestia Capital. "We focus on recession-resistant sectors like retail and medical office—assets that offer stable income, tangible value, and long-term growth potential."
Focus on Recession-Resistant Sectors
The fund's investment strategy prioritizes sectors known for their stability, even during economic downturns. These include retail and medical office properties. Retail assets often provide consistent income, especially those with essential services or strong local demand. Medical office buildings benefit from consistent demand for healthcare services, making them less sensitive to economic cycles.
Value-add retail properties are those where improvements can increase their worth and rental income. This might involve renovations, re-tenanting, or better management. High-yield debt investments can offer attractive returns by financing real estate projects, often with a collateralized structure.
Understanding Accredited Investors
An accredited investor, as defined by the U.S. Securities and Exchange Commission (SEC), typically meets specific income or net worth requirements. For individuals, this often means an annual income over $200,000 (or $300,000 with a spouse) for the past two years, with an expectation of the same in the current year, or a net worth exceeding $1 million (excluding the primary residence).
Indvestia Capital's focus on these asset classes reflects a strategic choice. The firm aims to provide investors with opportunities that combine current income generation with prospects for capital appreciation. This strategy aligns with the firm's overall approach to real estate investment.
Indvestia Capital's Track Record
Since its establishment in 2020, Indvestia Capital has maintained a strong performance record. The firm has never issued a capital call, which means it has not required investors to contribute additional funds beyond their initial investment. This demonstrates disciplined financial management.
Furthermore, Indvestia Capital has not missed a distribution to its investors. This indicates consistent income generation from its projects. The firm also states that it has not failed to deliver a profitable outcome on any of its investments.
Previous projects undertaken by Indvestia Capital have spanned multiple states, including Illinois, Indiana, Louisiana, and Michigan. These projects have reportedly delivered annualized returns up to 40%. Such returns highlight the firm's careful selection and management of properties.
The firm attributes its success to disciplined underwriting and a value-driven investment approach. Disciplined underwriting involves a thorough assessment of risks and potential returns before making an investment. A value-driven approach focuses on identifying properties that are undervalued or have the potential for significant improvement.
About Indvestia Capital
Indvestia Capital was founded in 2020 by Vick Mehta, who holds a CCIM designation. The CCIM (Certified Commercial Investment Member) designation is a recognized credential in commercial real estate. The firm specializes in acquiring, repositioning, and syndicating high-performing commercial real estate assets.
The company's portfolio includes over 300,000 square feet of owned and operated properties. Its strategy emphasizes stable, recession-resistant assets. These properties are typically backed by creditworthy tenants and long-term leases, which helps ensure consistent rental income.
To date, Indvestia Capital has completed 17 syndication deals. These deals involve over 85 investors from 15 different states. Of these, four deals have gone full cycle, meaning they have been successfully completed and liquidated, all with positive results for investors.
The firm continues to seek new investment opportunities that fit its criteria. Accredited investors interested in learning more about Indvestia Fund I or other opportunities can contact the firm directly. Details for scheduling a call or requesting offering documents are available on their website.
