Real estate investment company raises $138 million, announces Class A development project with Hines, further grows property portfolio, completes notable hires
OKLAHOMA CITY —(BUSINESS WIRE)— February 19, 2020 – Humphreys Capital, a leading real estate investment company, today provided an annual review of fundraising, investment and other business activities at the firm.
From December 2018 through February 2020, Humphreys Capital raised more than $138 million across its platform. In keeping with its established investing approach, Humphreys continued to deploy this capital by striving to work with best-in-class developers to acquire, develop and operate income-producing, multi-sector properties, including industrial, multifamily, office and retail, in 10 high-growth cities across the Southeast and Southwest United States.
In terms of investments, Humphreys Capital added 8 properties to its portfolio in 2019, bringing the total to 79. As of December 31, the portfolio held property valued at more than $720 million.
Among the portfolio additions in 2019 is 1512 Bull St. Apartments, an 83-unit urban infill property in the historic area of Savannah. It is Humphreys’ third investment in the city with a Charlotte-based, third-generation development partner. Another notable addition is The Residences at Classen Curve, in which the firm is partnering with international real estate firm, Hines. The five-story multifamily project, announced in December, will feature 325 for-rent units and will be Hines’ first multifamily project in Oklahoma. Construction of the Class A property is scheduled to begin in mid-2020 with occupancy in late 2021.
“We are very pleased with the continued growth of Humphreys Capital over the past year,” said Kirk Humphreys, Founder and Chief Executive Officer, Humphreys Capital. “Our focus on privately negotiated off-market, mid-size deals of institutional quality continued to prove attractive as we expanded the investor base across our three funds to include a growing number of institutional investors as well as family offices and high-net-worth individuals. In addition to first-time partnerships such as our exciting project with Hines, we had repeat engagements with several developers, continuing to allocate to our value-add and opportunistic portfolio through these joint ventures.”
Along with growing its AUM and property portfolio, Humphreys Capital added a number of staff members in key investor relations, accounting and administrative roles. Joining the firm in 2019 were Julie Craig, CPA, Accounting Associate; Joshua Fahrenbruck, Director, Investor Relations; Justin Lewellen, Director, Investor Relations; Kathy Mann, Administrator; and Jon Sikes, Investment Associate.
Another notable and most recent development was the reopening to Accredited Investors of Humphreys Fund I, LLC (“Fund I”), effective January 1, 2020. The Fund I investment team seeks opportunities in long-term buy-and-hold real estate in prime locations, established properties offering stabilized cash flow with potential for value-add, and infill development in proven submarkets. Cash distributions from the fund have increased each year since its formation in 2012, and investors in the fund have experienced a 14.6% net IRR since inception. New for this year, some investors can access Fund I via alternative investment custodial platforms. The annual offering will remain open until selling out, but no later than June 30, 2020. The minimum initial investment is $500,000.
“With a focus on people, process, portfolio and performance, we have thoughtfully, and we believe quite successfully, built Humphreys Capital into a full-scale real estate ownership and investment company,” said Mr. Humphreys. “Today we are a multigenerational team of 16 professionals with complementary skill sets across capital raising, deal sourcing, finance and operations. Employing solid, conservative underwriting, and in collaboration with leading real estate and development partners, we are confident Humphreys Capital is well positioned for further growth in the year ahead and to continue driving value for our investors.”
Humphreys Capital is a real estate investment company that acquires, develops and operates income-producing, multi-sector properties including industrial, multifamily, office and retail. The firm’s investment and development focus is on dynamic cities exhibiting diverse growth across the Southeastern and Southwestern United States, where it specializes in privately negotiated off-market, mid-size deals of institutional quality. The multigenerational team, which has more than 170 years of combined experience, provides seasoned expertise and exposure to diversified commercial real estate for accredited and institutional investors. The firm has raised more than $370 million since inception across three funds. Visit www.humphreyscapital.com for more information.
NO OFFER TO SELL SECURITIES
The distribution of this release is made for informational purposes only. This release does not constitute an offer to sell, or a solicitation of offer to buy, any securities of any fund(s) managed by Humphreys Capital, LLC or any of its affiliates, nor is it intended to be a description of all material factors an investor should consider before investing in a fund managed by Humphreys Capital. Any such offer or solicitation will be made only pursuant to the funds’ definitive offering memorandums, subscription documentations, and otherwise in accordance with applicable securities laws, and will be subject to the terms and conditions contained in such documents. Prior to making an investment decision, prospective investors should carefully review the offering documents of the funds for a description of material factors to consider, including risk factors and investor suitability requirements.
PAST PERFORMANCE AND FORWARD-LOOKING STATEMENTS
Past performance is not a guarantee of future results. This document contains forward looking statements and projections that are based on Humphreys Capital’s current beliefs and assumptions. Such statements necessarily involve risks, and prospective investors should not rely on such statements. Actual results may materially differ from past or expected performance. Investment in the funds is speculative, and may result in a complete loss of capital.
INTERNALLY PREPARED VALUATIONS
All references to values refer to internally-prepared valuations. The portfolio’s size is represented by the value of property controlled by funds managed by Humphreys Capital. Property value of joint venture entities includes the fair value of equity contributed by the funds plus the pro rata share of debt. The net Internal Rate of Return (“IRR”) of Humphreys Fund I, LLC (the “Fund”) is an annualized return calculated as of 12/31/19 with the sum and timing of investors’ capital contributions and distributions to investors net of management fees, Fund expenses, and manager’s return using a terminal value as of the calculation date.