The Petrus Group assists local and foreign investors in acquiring and developing commercial real estate assets in the Washington D.C. Metropolitan area -- taking advantage of historically low pricing and the more stable employment base provided by the Federal Government.
The Petrus Group will raise 20 to 25 million dollars (the Fund) from 10 to 15 private individuals and/or business groups and use the Fund to acquire assets from bank foreclosures, auctions, and private owners in distressed situations. An LLC would be formed, ensuring that no individual investor liability would be incurred beyond the group’s original investment.
The Fund, on behalf of the Investors, will acquire two types of assets:
(1) Income producing (office buildings, industrial flex, multifamily and retail shopping centers)
(2) Ready-to-build land for construction (a process that, under normal circumstances, would take two years of engineering and permitting to achieve)
Investors and The Petrus Group will own these assets.
- Investors will receive preferred returns on capital from all income producing assets.
- After distribution of the preferred returns, the Investors will receive 80% and The Petrus Group will receive 20% of net distributable cash flow.
- The Investors will receive 80% and The Petrus Group 20% of net cash proceeds for any capital transaction (defined as a refinancing or sale of assets.)
- In the event a broker is involved in any transaction, The Petrus Group shall be entitled to a commission provided such commission does not dilute the return to the Investors.
The Petrus Group’s income is derived from enhancing the value of the property and thereby enhancing Investor’s returns. Based on the current market conditions it is anticipated that assets will be held for 2 to 7 years.
We at The Petrus Group appreciate this opportunity to present our Investment Fund Summary in these dynamic and opportunistic times in the real estate marketplace.