The Petrus Group is starting two investment funds to acquire real estate assets in the Washington Metropolitan market in this opportunistic market. The Petrus International Fund and the The Petrus National Fund will primarily invest in the Washington market which remains as one of the top two markets in the United States. This market continues to attract considerable foreign investment as well domestic capital largely due to the stability that the Federal Government brings to the area and the fact that the area's unemployment rate continues to be about 3% below the national average. The area continues to show economic stability relative to the rest of the country.
The Petrus International Fund is designed to bring foreign investments to the Washington market to acquire real estate assets within a specific niche. The Group's focus will be in retail shopping centers, commercial office space, industrial flex, multifamily and finished land. Much of the property will be bought through banks which have repossessed the property or through liquidation sales.
The assets will be held in the name of the fund and not by the Petrus Group; the investors in the fund will be paid preferred returns on the cash investments as well as 80% of the profits. The Petrus group will receive 20% of the profits.
The Petrus Group will not charge any fees but rather will be solely compensated on its performance and the performance of the assets acquired. Minimum participation will be $1 million.
The Petrus National Fund is designed for domestic investors and will operate in a manner similar to the International Fund with the exception that it may participate in tax deferred exchange transactions. Minimum participation will be $100,000.
For more information download the Petrus Fund Proposal presentation.