Constitution Real Estate Credit Fund closes out August 2024 performance up 36.22% net. The fund focuses on generating absolute returns on low LTV non-performing and performing loans.
Dear Partners,
We are pleased to share the latest performance update for the Constitution Real Estate Credit Fund. This report highlights the fund’s performance, current market trends, and key portfolio insights, as we continue our focus on generating strong, risk-adjusted returns for our investors.
Learn more about the fund
Performance
Net P/L Performance by Month Breakdown
Jan 2024
-1.21%
Feb 2024
2.85%
Mar 2024
6.59%
Apr 2024
3.38%
May 2024
5.84%
Jun 2024
5.78%
Jul 2024
4.68%
Aug 2024
3.83%
YTD
36.22%
Market Thoughts
The secondary market for commercial real estate debt remains highly active, with even greater growth potential on the horizon. We see significant opportunities to acquire high-quality real estate notes and distressed assets at attractive valuations. The landscape of forced sellers and limited competition—especially in the sub-$10 million unpaid principal balance segment—positions us to make strategic acquisitions in the near term.
Portfolio Insights and Highlights
The fund’s portfolio remains very well positioned, with a focus on real estate-backed non-performing loans (NPLs). Our holdings in performing notes continue to provide a steady interest stream, supported by solid collateral. In August, we didn’t have any NPL payoffs or new purchases, however we turned an NPL purchased last month into a performing loan with borrower paying 18% rate with an LTV of <20%.
Pipeline
We’re currently pursuing the acquisition of an NPL backed by a multifamily property in our primary market. This potential deal would involve favorable seller financing from the bank holding the loan. Given the sensitive nature of NPL transactions, we’ll only be sharing further details with fund investors.
We’re confident in the opportunities ahead and will keep you updated on progress and developments. Thank you for your continued trust and partnership.
Learn more about investing in the Constitution Real Estate Credit Fund
Yours truly,
Ricardo, Kyle, and Joe
200 Pemberwick Rd, Greenwich CT 06831
| Qualification | Requirement |
|---|---|
| Minimum and maximum loan amount | $150,000 to $3,000,000 |
| Type of property | Non-owner occupied single-family, multi-family, and 5-8 unit properties |