Humphreys Real Estate Income Fund, LLC Investor Portal
Humphreys Real Estate Income Fund, LLC

Investor Offering Portal

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Humphreys Real Estate Income Fund, LLC
506(c) Offering Platform

INTRODUCTION TO OUR COMPANY

Humphreys Real Estate Income Fund, LLC is a private investment fund (the “Company”). The Company is managed by Humphreys Capital, LLC, an Oklahoma limited liability company (the “Manager”) which manages complementary real estate portfolios to pursue select investment objectives. The principal tenets of the Manager’s philosophy are common to each of its portfolios and the approach it will employ to operate the Company. The following summary provides a general description of the types of real estate investments the Company expects to make, the investment criteria that it plans to apply, certain techniques and methods that it may employ, and the guidelines it has established with respect to the construction of the Company’s investment portfolio. Investors should not assume that any descriptions of the activities in which the Company may engage are intended to limit the types of investment activities which the Company may undertake or the allocation of Company capital among the Investments. Where applicable in this Memorandum, the term “Company” includes Humphreys Real Estate Income Fund, LLC, the REIT Subsidiary and their subsidiaries.

From our inception in 2012, investors in the Company have realized a net internal rate of return of 13.6%, comprised of unit price appreciation and distributions. Monthly distributions have continued since inception with current dividends delivering a 7.2% annual yield on the current unit price.

Humphreys Real Estate Income Fund, LLC
506(c) Offering Platform

summary of investment strategy

Platform Philosophy

The Manager believes the proper prioritization of people, process, and portfolio leads to superior performance. Personal relationships form the foundation of a repeatable, scalable process. Such a process creates a consistent roadmap for the team to construct an exceptional portfolio that can result in superior risk-adjusted performance. Guided by this philosophy, the Manager is focused on building long-term relationships with both operating and investment partners. The Manager’s objective is to facilitate repeat investments with proven operators while maintaining the trust of family and institutional investors with a multi-generational perspective.

As the Company makes investments in real estate, economic conditions are likely to change, and the dynamics of target markets and sub-markets will adjust as well. The Manager is committed to maintaining three forms of diversification in the Company’s investments for the explicit purpose of responding to changing market conditions and investing throughout the entire real estate cycle. These three forms of investments include:

  • (i) Market and geographic location: The company targets ten high-growth U.S. markets with current investment property in fifteen states. We target select submarkets of metropolitan areas with multifaceted high-growth dynamics.
  • (ii) Real estate sector and developer relationships: The Company has expertise and deep relationships across our target sectors with best-in-class development partners and a curated network of real estate professionals with local knowledge critical for success.
  • (iii) Strategy for risk mitigation and value creation: We source complementary core, value-add, and opportunistic strategies that keep our team ready and relevant in the marketplace.

The Manager intentionally seeks real estate investments across the primary asset classes of multifamily, industrial, office, retail, and mixed-use properties. The Manager has strong existing relationships with partners in each sector and will continue to source relationships across these sectors. Additionally, the Manager has extensive experience evaluating and underwriting the comparative risks and benefits of properties and operating partners in each of these sectors. While the Manager believes investors benefit from sector and relationship diversity, each real estate investment must withstand an evaluation against competing opportunities in other product types. The Manager employs this approach to reveal what it believes are the most attractive real estate investments regardless of the economic cycle in a single sector.

The Manager also diversifies each portfolio by value creation and risk mitigation strategy, employing a spectrum of investment approaches. The Manager invests in “core” assets with stabilized tenants and steady net operating income, underwritten for long-term hold. These investments are intended to generate reliable cash flow for the Company and its investors. The Manager also invests in joint venture development and redevelopment projects with the potential for capital appreciation, driven by an increase in net operating income. Investments are categorized as “value-add” when the property is stabilized and generating positive cash flow but holds potential for appreciation through a defined capital improvement plan. Alternatively, joint venture investments are categorized as “opportunistic” when the property will involve new construction or adaptive reuse prior to income generation. Each of these joint venture strategies is underwritten to create and realize value over a three- to five-year hold period, but they can transition to “core partnerships” when the property achieves stabilized leasing. The Manager believes this strategic diversification provides a balanced approach to risk mitigation with the added benefit of constant presence in the real estate marketplace.

Our team has expertise and deep relationships across our target sectors. We partner with best-in-class development partners and add value through the expertise and resourcefulness that comes from decades of experience.

Humphreys Real Estate Income Fund, LLC
506(c) Offering Platform

Management Team

The Company is managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.

Grant Humphreys

Grant
Humphreys

President
 

Grant Humphreys

Blair
Humphreys

Chief Executive Officer

Kirk Humphreys

Kirk
Humphreys

Executive Chairman
 

Ben Stewart

Ben
Stewart

Managing Director of Investor Relations
 

Joshua Fahrenbruck

Joshua
Fahrenbruck

Director of Investor Relations
 

Justin Lewellen

Justin
Lewellen

Director of Investor Relations
 

Maggie Foster

Maggie
Foster

Administrative Assistant, Investor Relations

We provide diversified real estate portfolios to our investors. Our team understands the defining characteristics and trends that create opportunities.

Humphreys Real Estate Income Fund, LLC
506(c) Offering Platform

terms of the offering

$70,000,000

Minimum Investment: $500,080 (3,572 Units)

The securities being offered hereby are 500,000 Series One Units in Humphreys Real Estate Income Fund, LLC, an Oklahoma limited liability company, at the Offering Price of $140 per Series One Unit, which is the most recently determined Stated Value of the Series One Units. The Board approved annual distribution for 2021 is $10.10 per Series One Unit, paid monthly.

Preferred Returns

The Series One Unit Holders will be entitled to a cumulative but not compounded (i) Preferred Return equal to $8.00 per Series One Unit per annum, and (ii) Second Preferred Return equal to $2.00 per Series One Unit per annum.

Distributions of Cash Available for Distribution

Distributions of Cash Available for Distribution will be made quarterly (or more frequently as determined by the Manager, in its sole discretion) to the holders of the Series One Units and the Common Units, after payment of the Monthly Management Fee, in accordance with the following priorities:

  • First, to the Series One Unit Holders in proportion to their accrued but undistributed Preferred Return on their Series One Units (a per annum amount equal to $8.00 for each Series One Unit on an accumulated accrual basis from Cash Available for Distribution, Sales Proceeds and Liquidation Proceeds) until the Series One Unit Holders have been distributed an amount equal to their accrued but undistributed Preferred Return.
  • Second, to the Common Unit Holders in proportion to their accrued but undistributed Manager’s Return on their Common Units (a per annum amount equal to $3.00 for each Common Unit on an accumulated accrual basis from Cash Available for Distribution, Sales Proceeds and Liquidation Proceeds) until the Common Unit Holders have been distributed an amount equal to their accrued but undistributed Manager’s Return.
  • Third, to the Series One Unit Holders in proportion to their accrued but undistributed Second Preferred Return on their Series One Units (a per annum amount equal to $2.00 for each Series One Unit on an accumulated accrual basis from Cash Available for Distribution, Sales Proceeds and Liquidation Proceeds) until the Series One Unit Holders have been distributed an amount equal to their accrued but undistributed Second Preferred Return.
  • Fourth, to the Common Unit Holders in proportion to their accrued but undistributed Second Manager’s Return on their Common Units (an amount equal to, including and giving effect to prior receipt of the Manager’s Return, 25% of the aggregate sum of the distributions of Cash Available for Distribution, Sale Proceeds and Liquidation Proceeds, and other cash distributions to the Series One Unit Holders and the Common Unit Holders in payment of the Preferred Return, the Manager’s Return, the Second Preferred Return, the Second Manager’s Return and the Investment Recoupment) until the Common Unit Holders have been distributed an amount equal to their accrued but undistributed Second Manager’s Return.
  • Thereafter, 75% to the Series One Unit Holders and 25% to the Common Unit Holders.

Distributions of Sale Proceeds and Liquidation Proceeds

Distributions of Sales Proceeds and Liquidation Proceeds will be made to the holders of the Series One Units and the Common Units, after payment of the Monthly Management Fee, in accordance with the following priorities:

  • First, to the Series One Unit Holders in proportion to their accrued but undistributed Preferred Return on their Series One Units (a per annum amount equal to $8.00 for each Series One Unit on an accumulated accrual basis from Cash Available for Distribution, Sales Proceeds and Liquidation Proceeds) until the Series One Unit Holders have been distributed an amount equal to their accrued but undistributed Preferred Return.
  • Second, to the Series One Unit Holders in proportion to their Investment Recoupment until the Series One Unit Holders have been distributed an amount equal to their Investment Recoupment. For purposes of determining the Investment Recoupment, the Stated Value of each Series One Unit will be adjusted to the offering price of the Series One Units in the Offering and any subsequent offerings of the Series One Units; provided, however, that the adjustment to the Stated Value will not impact the Manager’s allocations and distributions.
  • Third, to the Common Unit Holders in proportion to their accrued but undistributed Manager’s Return on their Common Units (a per annum amount equal to $3.00 for each Common Unit on an accumulated accrual basis from Cash Available for Distribution, Sales Proceeds and Liquidation Proceeds) until the Common Unit Holders have been distributed an amount equal to their accrued but undistributed Manager’s Return.
  • Fourth, to the Series One Unit Holders in proportion to their accrued but undistributed Second Preferred Return on their Series One Units (a per annum amount equal to $2.00 for each Series One Unit on an accumulated accrual basis from Cash Available for Distribution, Sales Proceeds and Liquidation Proceeds) until the Series One Unit Holders have been distributed an amount equal to their accrued but undistributed Second Preferred Return.
  • Fifth, to the Common Unit Holders in proportion to their accrued but undistributed Second Manager’s Return on their Common Units (an amount equal to, including and giving effect to prior receipt of the Manager’s Return, 25% of the aggregate sum of the distributions of Cash Available for Distribution, Sale Proceeds and Liquidation Proceeds, and other cash distributions to the Series One Unit Holders and the Common Unit Holders) until the Common Unit Holders have been distributed an amount equal to their accrued but undistributed Second Manager’s Return.
  • Thereafter, 75% to the Series One Unit Holders and 25% to the Common Unit Holders.

CONTACT US

Please complete the contact form and we will get back to you about any questions you have about our offering.

Humphreys Real Estate Income Fund, LLC - 17 NW 6th Street - Oklahoma City, OK 73102 — ir@humphreyscapital.com — (405) 228-1000