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.
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:
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.
The Company is managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.
Chief Executive Officer
Managing Director of Investor Relations
Director of Investor Relations
Director of Investor Relations
Administrative Assistant, Investor Relations
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.
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 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:
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:
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Humphreys Real Estate Income Fund, LLC - 17 NW 6th Street - Oklahoma City, OK 73102 — firstname.lastname@example.org — (405) 228-1000