Happy New Year! I hope you had a great holiday season with friends and family. 2019 is now behind us and there are a number of accomplishments we are extremely proud to share with you.
During 2019 LMDG through its various investment vehicles was extremely active acquiring properties totaling $25 million.
The capital raising period for Fund II closed in 2019; launched during the second half of 2018, Fund II raised $11 million and acquired nine properties with an estimated stabilized value of $30 million.
Additionally, the first property from Fund II was sold in 2019. LMDG increased gross rental income by over 80% from the time of acquisition for this property and the project returned a 46% IRR and an equity multiple of 1.43x. Active for less than 18 months, Fund II continues to renovate and stabilize its remaining properties.
Three investor distributions were made during 2019 and Fund II is on pace to make quarterly distributions to its investors beginning in 2020.
LMDG continued to expand its investor footprint as well, expanding its reach to 19 states across the US.
In October, LMDG launched its third fund LMDG Fund III, LP with a target raise of $100 million. We have seen great participation from existing investors and Fund III is off to a great start with three properties already acquired.
Fund III will focus on intrinsic real estate value that translates into long term cash flow and immediate value enhancement. Fund III targets assets within coastal cities in Los Angeles and Orange County as well as strategic neighborhoods within Santa Monica, Los Angeles, Hollywood, and West Hollywood.
For more detail, download the Fund III flyer today.
Lastly, in November, Aaron Merriman was interviewed by attorney Jillian Sidoti as part of her People You Should Know series. The topic, Why invest in real estate in California?
2019 was a record year for LMDG and we have our sights set even higher for 2020. Kindest Regards,
