Constitution Real Estate Credit Fund closes out July 2024 performance up 31.19% 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 our recent performance, current market trends, and key portfolio insights, as we continue our focus on generating strong, risk-adjusted returns for our investors.
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%
YTD
31.19%
Market Thoughts
The secondary market for commercial real estate debt remains active and is expected to grow, particularly if interest rates decrease more gradually or less than anticipated. This environment presents attractive opportunities to acquire high-quality real estate notes and distressed assets at favorable prices. With a growing number of forced sellers and limited competition, especially in the segment of loans with unpaid principal balances below $5 million, the conditions are ripe for strategic acquisitions.
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 July, we had 1 NPL payoff in full and we acquired 2 more. Both new NPLs, having a sub 20 LTV.
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 |