DALLAS-Eyeing retail and multifamily properties, a seasoned local executive has launched an equity fund for acquisitions and development. J. Alexander Realty Group Ltd., formed this summer, has secured $2 million in equity commitments to date.
A. Christopher Slauer, managing general partner of J. Alexander Realty, tells GlobeSt.com that the goal is to amass $5 million of equity primarily for development buy-ins in North Texas. He's also in talks for some Georgia deals as well. "At least one transaction will be done before Christmas," he says. The J. Alexander Realty Group Fund II should close out in second-quarter 2007 if Slauer's plan stays on track.
Slauer says the fund is projecting returns of 12% to 18% depending on product type with a 90-10% back-end split for the accredited-only pool of investors and the company, respectively. "We want our investors to profit from the projects we do," he stresses, "and we want them to profit immediately."
The company's first fund and Slauer's second is structured for a three- to five-year hold. The average equity contribution will be $700,000 to $750,000 so the first round can gain as much ground as possible, says Slauer, whose background has been behind-the-scenes work in turnarounds, work-outs and venture capital investments.
Slauer, who has amassed an advisory board of industry veterans, recently hired a vice president and analyst, Jeremy Cloud. "I will build the group over time," he says, adding the doors have now opened at his Signature Place office in North Dallas.
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