In the current real estate market in Chicago, real estate private equity funds offer untold opportunities for investors. The delinquency rate for bank loans secured by Chicago-area income-producing real estate increased to 7.4% in Q2 2011, up from 6.8% in Q1 and 6.2% in same period a year earlier according to Foresight Analytics. In March 2011, the Chicago Tribune reported that “Owners of 96,000 two- to six-unit rental buildings in Cook County are upside-down in $12.6 billion of mortgage debt, potentially putting 42% of small rental buildings in the county at risk of default.”
Logan Ventures’ investment objective is to achieve capital appreciation by way of acquiring real property and property-related assets. The acquisition targets of this Chicago real estate private equity fund are distressed and bank-owned commercial, broken condo transactions, apartments, multi-family for $10 million or less, primarily in Chicago and its suburbs. After purchase, all properties will be renovated and leased on an all-cash basis, thereby achieving the best cost and velocity and offering compelling 5-year returns.