Sunbelt multifamily briefing from Kanwaljit Dhunna, Managing Partner, Dhunna Capital.

I am Kanwaljit Dhunna, Managing Partner at Dhunna Capital. I have been acquiring real estate for 28 years. My brother and my sister run this firm with me, and we are a family office in the literal sense. I want to take five minutes of your time to explain what we are buying right now, where we are buying it, and why we think the next three years of Sunbelt multifamily is the highest-probability income trade available to an accredited investor.

The market has rotated. Two years ago, multifamily was priced as if the 2021 cap-rate environment was going to persist forever. That is no longer the case. Sellers have capitulated. Distressed sponsors are handing back keys on bridge paper they never should have written. Agency lenders are open for business at terms that, on the right deal, underwrite to a 15%+ investor return with a three to five year exit.

We buy on that arithmetic. We do not buy on a story about a market. We buy cash-flowing multifamily in six Sunbelt states. Texas, Florida, North Carolina, South Carolina, Arizona, and Georgia. Those six are the strongest net domestic in-migration markets in the United States over the last five years, and they are the markets with the most constrained Class B multifamily supply.

Right now we have eight active properties under management. A 456-unit mid-rise on the New River in Fort Lauderdale. A 346-unit riverfront asset in the Miami Health District. A 260-unit high-rise with a rooftop pool in Fort Lauderdale. A 236-unit 2020-vintage garden-style community in Tarpon Springs. A 137-unit value-add in North Charleston. A Sunrise, Florida property with a 5.8 million dollar upgrade program underway. The Edison Apartments in Fort Myers. And a 256,000 square foot Class A trophy office in Scottsdale. Every one of those assets is cash-flowing at the date of this briefing.

The program is a 506(c) accredited-only offering. You have to be an accredited investor to participate. The target hold is three to five years. The tax treatment is K-1 partnership income, which means you receive your share of the depreciation and the cost segregation pass-through, and on a typical deal that is enough to shelter a material portion of your year-one distributions from federal tax.

Historical investor returns across our prior offerings have often been in excess of 15%. I want to be careful with that number. That is a historical reference across prior offerings that my principal group has managed or co-sponsored. It is not a guarantee. It is not a projection of what the next deal will return. Past performance does not predict future performance. What that number tells you is that we have been underwriting the same way for 28 years, and the arithmetic has held.

The capital stack on every deal is structured by our own in-house mortgage brokerage. All three of the Managing Partners at this firm are active mortgage brokers. My sister founded RK Mortgages. My other brother is an eight-year broker. I own an independent brokerage and have been placing private equity loans against real estate for 18 years. We have deployed more than 100 million dollars in private equity debt over that window, and 45 million in the last 24 months alone.

What that means for you as a limited partner is the following. When you invest in a Dhunna Capital deal, the person underwriting the debt sits at the same conference table as the person underwriting the asset. They are the same person. They are related to each other. There is no handoff, there is no broker fee leaking out of the capital stack, and there is no rate-lock surprise at closing.

Across the principal group, we hold CO-GP and LP positions on 2,150+ doors. We have not lost a property in this operating history. We have not called capital on a deployed deal. Our hold-period discipline is stated up front in every PPM we circulate, three to five years, with a one-year downside cushion, and no evergreen structures.

We are not trying to be the biggest multifamily sponsor in the Sunbelt. We close fewer deals per year than the largest public syndicators. We run a narrower filter. Our deals clear an internal due diligence memo that covers submarket rent growth, operating expenses, the debt term sheet, the exit comp set, and a stress-test on a cap-rate reversion to 2019 levels before we ever open the deal to the LP base.

The program is a 506(c) offering under Regulation D. You have to be accredited. Minimum investment, target cash-on-cash, target IRR, preferred return, and the full fee schedule are in the PPM, and we share the PPM on the intro call, not before. We treat the PPM as a closed document.

We also run a dedicated intake program for Canadian accredited investors. If you are listening from Toronto or Vancouver or Calgary, we have the cross-border tax structure in place and we have the K-1 workflow running for Canadian LPs, which is something most U.S. sponsors simply cannot accommodate.

If any of that resonates, the next step is a 15-minute intro call with our investment team. You can book it on the calendar below. We will walk you through the active deal pipeline, we will answer the deal-level questions that are not in the public materials, and we will send you the PPM at the end of the call if the fit is there. Thank you for your time.