Southeastern has been actively involved in raising equity from third party investors for more than 20 years. Early on, investments were made on a project basis. In 2008, the company adopted a strategy of raising equity through private investment funds managed by entities related to the company. Southeastern currently serves as the sponsor of Oak Fund I, Oak Opportunity Investments, Oak Fund III and Oak Fund IV which are briefly described below. Oak Fund I, Oak Opportunity Investments, Oak Fund III and Oak Fund IV are fully subscribed and closed to new investors.
Please contact Danny Hellams at 706.829.0567 or email@example.com if interested in hearing about future opportunities to invest in our next Oak Fund.
Monies raised through the fund “platform” are generally used to provide equity for new commercial real estate development projects and to acquire distressed loans secured by real estate or undervalued real estate. The strategy of each Fund is to provide investors with diversity relative to geography and product type. A typical Fund will invest in a variety of properties, including retail, multi-family, hotel, and other forms of commercial or residential real estate, that are primarily located throughout the southeastern United States. More recently, the Funds have also invested in distressed assets of commercial banks. This typically involves the purchase of first mortgage loans that have ultimately been foreclosed. The properties are then re-positioned, redeveloped, and sold. These types of investments have proven to provide unusually high returns. Southeastern serves as sponsor of all Oak Funds.
OAK FUND I, LLC
The initial fund, Oak Fund I, was initiated in 2008. It was formed for the purpose of investing in operating entities that will acquire and subsequently develop, maintain, finance, manage, operate, lease, and ultimately sell real estate properties that meet the investment criteria of the Fund. The Manager of Oak Fund I is Oak Capital, LLC. Oak Fund I was open for investment for approximately 12 months during 2008 – 2009, achieving $12,000,000 in total accredited investor subscriptions. Fully subscribed by 2009, the fund is fully invested and enjoying positive financial results.
OAK OPPORTUNITY INVESTMENTS, LLC
The second major fund, Oak Opportunity Investments, was initiated in 2009. It was formed to capitalize on current dislocations in the commercial real estate sector of the economy. The Fund intends to acquire, on an opportunistic basis, distressed and undervalued real estate assets, distressed loans, and loans collateralized by distressed real estate assets. It will also undertake new developments to take advantage of current lower construction costs. The Manager of Oak Opportunity Investments is Oak Capital II, LLC. Oak Opportunity Investments was open for investment for 12 months during 2010—2011, achieving approximately $13,000,000 in total accredited investor subscriptions. The fund is enjoying positive financial results.
OAK FUND III, LLC
Oak Fund III, LLC was initiated in October of 2012. It was designed with the similar purpose of Oak Opportunity Investments, LLC which is to capitalize on current dislocations in the commercial real estate sector and seek new development opportunities in strategic locations throughout the Southeast. The Manager of Oak Fund III is Oak Capital III, LLC. This $25,000,000 offering is fully subscribed by accredited investors and closed to new investors. The fund is 100% committed and enjoying positions financial results.
OAK FUND IV, LLC
Oak Fund IV, LLC was initiated in February, 2015 and was fully subscribed at $25,000,000 by accredited investors within 5 months. The manager of Oak Fund IV is Oak Capital IV, LLC. Investment focus is on strategic new development often coupled with former distressed asset such as the land. Currently 53% is invested and 100% of the fund is committed. Oak Fund IV is closed to new investors.