Founders Investment Banking’s Real Estate Practice is pleased to announce the successful closing of the first round of investment in the newly formed Foundation Residential Acquisition Fund I. In response to ongoing challenges in the residential real estate sector, the Fund has acquired and will continue to acquire single family homes that will initially be used as rental properties and then later sold as economic and market conditions improve. Founders advised the Fund’s manager, Foundation Fund Management, LLC, on the formation of the Fund and provided research in support of the its primary investment thesis. The key component of this thesis was the development of a process to efficiently acquire, renovate, and professionally manage (through a third party) large volumes of price-discounted properties, driving return for investors through current rental income cash flow and future asset appreciation. Founders will continue its advisory function for future acquisitions made by the Fund.
The creation of and ongoing advisory for this Fund are among several strategic initiatives Founders is pursuing to establish itself as a leader in the evolving world of distressed real estate investing. “The alternative investment universe has changed dramatically in the last year, particularly within the real estate market. As a result, we believe investors and financial institutions will need a different level of expertise in evaluating real estate assets,” stated Andy Sink, Managing Director of Founders’ Real Estate Practice. “Our goal is to assemble a team of ‘best in class’ experts to underwrite opportunities—especially distressed assets—in the current real estate investment market. This knowledge has us well-positioned to source and facilitate transactions.”