Value-Add Real Estate Opportunity Fund
The Anka Value-Add Real Estate Opportunity Fund platform ("Value-Add Fund") was created prior to the market melt-down in 2008 as a spin-off private equity vehicle investing in niche small and middle market transactions (typically less than $25 million of equity) on an opportunistic basis throughout the U.S. Led by a team experienced in acquiring, adding value to and managing real estate for large institutional capital sources, the Value-Add Fund focuses on situations where it can support a transformative value step-up, often involving a solution with an environmental or socially sustainable component, to under-served situations. The Value-Add Fund leverages its platform, proprietary deal flow and specialized knowledge to invest in assets burdened by financial, environmental or municipal concerns. Anka adds value to assets to produce strong community and stakeholder outcomes. When the market collapse occurred in 2008, fewer value-add transactions offered the strong risk-adjusted return criteria sought by Anka. As a result, Anka created its Residential Real Estate Dividend Funds (www.ankafunds.com/anka-funds/residential-real-estate-fund) to opportunistically pursue residential assets that could provide steady returns and dividends for investors as an alternative to the value-add opportunity set.
The principals of Anka have worked together since 2002, helping Cherokee Investment Partners and its affiliates invest opportunistically in and manage distressed, value-add and other real estate for their various private equity funds. The principals believe conditions in underserved assets within the middle market have offered strong value-add opportunities. The Anka team has successfully invested in and/or managed middle market real estate investments and has a unique platform in place to execute on these opportunities when market conditions are appropriate.
Anka's history and experience match well with the Value-Add Fund objectives. In addition to their work buying and transforming distressed assets, Anka's principals have significant experience developing partnerships with public entities that increase stakeholder value in challenged or priority transactions by leveraging public resources with private capital, creativity and expertise. Anka principals have been recognized as some of the foremost experts in identifying, accessing, securing and structuring public partnership for their complex projects, having pioneered certain programmatic structures, authored specialized federal legislation authorizing new programs and publicly testified before committees of the United States Congress on four occasions about how to creatively add value to underserved, challenged or distressed sites. Often the public-private structures and finance programs that Anka works with are obscure, require sophistication to access and structure or are not immediately available, but for the relationships Anka brings to the table.