The Dartnell Limited Partnership was a regulation C fund established in 2016 with a $10M cap. While the Fund may participate in other investments, it primarily purchased single family homes that were already rented and producing monthly cash flow. These assets are often referred to as “Turnkey” rentals. This fund’s portfolio or holdings are primarily in Alabama, with several properties in both Georgia and Missouri. The primary investment objective is to achieve a return from capital appreciation, as well as cash flow from rental income. The Fund has diversified its portfolio by investing in multiple residential real estate markets. It concentrates on certain property types in specific geographic markets.
The Fund utilizes an investment strategy of acquiring properties in underserved and ignored markets including the purchase of residential homes rehabilitated and/or assets that have growth potential that typically fall below the required investment size thresholds of larger, institutional investors. The strategies employed include:
- Purchasing existing, cash-flowing real estate properties;
- Holding income properties in economic climates where socio-economic conditions create strong rental markets but have been overlooked by large institutional investors;
- Acquiring assets in distressed markets; and
- Acquiring refurbished assets in cash-flow positions.
The Fund targets both value and growth-oriented investments. As the economy continues to recover certain markets, especially in the Southeastern United States, contain the potential to grow at a pace that is in excess of that of the nation as a whole. Recovering demand will allow for opportunities to enhance value in a number of ways. For example, the Fund intends to take advantage of residential homes that may be subject to valuation increases due to renovations, and improved tenant leases. At the appropriate, time the fund intends to pursue liquidation strategies to capitalize on anticipated appreciation to the real estate market in general.