As we indicated would happen in our November 5, 2015 update, the Frankfort Plaza shopping center (a Series 2 investment) has been successfully re-financed as of November 25, 2015. The result is the return of 100% of original investment. Investors will also receive a significant distribution that includes the remaining balance of the roughly 12% IRR calculated from the purchase date of the property, per the Operating Agreement, plus an additional 21% of your original investment. The annualized IRR of this investment, per the sponsor, net of our fees through November 25 is approximately 24%. Investors will continue to receive distributions from the operations of the shopping center and also the proceeds when the center and/or outlot is eventually sold.
The refinancing proceeds will be paid from the new entity, Frankfort Plaza SC LLC, that was created to accommodate the new loan requirements. Frankfort Plaza LLC will continue to own the outlot and is debt free.
While this was a smaller transaction (we tried to get more; investors had from $2400 to $33,000 in this investment), we are very happy about the outcome of this transaction and look forward to finding new opportunities in the coming year.
Allocations were based on the total amount of money committed to the Fund, with the largest investors receiving the largest percentage. Click on "My Money" at infinite-alpha.com to view your commitment to this and other investments.
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