Two paths into Connecticut real estate.
One operating standard.
Steady quarterly income from the debt fund, or equity upside from a project when one clears our review.
The Capital Preservation Fund
First-position loans · quarterly income · 12-month term
First-position loans to vetted Connecticut operators, at an 11% target yield. Quarterly income, a twelve-month term, and six months of interest held in escrow on every loan. This is a Reg D 506(c) offering for accredited investors.
Multifamily Syndications
Equity upside · 3–5 yr hold · quarterly
Value added, class B and C multifamily. We co-invest under the same terms. Projects come along periodically, only when a specific deal clears the full review. When one opens, the investor list hears first.
Both paths run on the same discipline: first protect the principal, then earn the return. The sections below are the reasoning behind it, starting with the fund.
We don't stretch for yield. We remove risk, eliminate ways to lose, and make certain we're in first place.
When something goes wrong, someone has to absorb the loss first. It is never you.
Every real estate deal has a capital stack. When a project falls short, the loss is absorbed by the stack from the bottom up, starting with equity. The fund holds a first-position lien on every property, recorded at the closing table. We do not allow secondary mortgages. We are paid before any equity holder sees a dollar.
Equity is the cushion. We sit ahead of it. A borrower can be wrong about the resale price, wrong about the timeline, wrong about the crew. The equity in the deal absorbs those mistakes before our principal or interest is ever impacted. This single structural element is our insurance against market downturns, projection mistakes or renovation hiccups.
The risk everyone is watching is a timeline problem. We removed that risk.
The most concerning number in commercial real estate right now is a $2 trillion maturity wall.
But here's the thing. It's not really a valuation problem. It's a timeline problem.
Ten-year adjustable rate loans written in a cheaper world, are now coming due against valuations negatively impacted by massive geopolitical and economic changes.
The clock started. Assumptions were made:
- Rents would continue to accelerate. They didn't.
- Inflation would stay relatively stable. It didn't.
- Valuations would continue to grow. They haven't.
Most of the offering memorandums we read from 2018 to 2024 assumed a pretty rosy growth picture. We passed on a lot of them because when we stress tested them, most fell short. Even some of our own projections missed the mark. Those experiences made us a lot smarter and a lot more conservative.
Loans from our debt fund run 12 months. A flip project doesn't need a 10-year term. Capital comes back inside a year and redeploys at whatever rate the world dictates at that time.
We date the project and the operator. We marry the region. Our conviction lies in our belief that Connecticut, and the Northeast in general, represents a uniquely stable and predictable housing market.
We reprice, by design, with every project and every operator. It's boring, but given the market dynamics, we're more than happy to hit singles and doubles.
First position is the floor. Four more layers sit on top of it.
Not a marketing list. Each layer is a specific term in the loan documents, and each one has to fail before the layer beneath it is tested.
First-position mortgage
A first lien on every property, recorded at closing. We are paid before any equity holder.
Six months of interest in escrow
Held in reserve on every loan. The early months are covered before a project ever has to perform.
Pre-vetted borrower bench
A minimum 660 credit score, a real track record, and operating cash in reserve. We lend only to operators who clear the bar.
Work the problem, then take the keys
A payment 10 days late puts our team on the ground working the problem. On day 31, the loan goes into default, which begins the process to take over the project. Another reason why we lend close to home.
Connecticut only
Real recourse, real local knowledge and a property we've physically walked before the money was ever lent and every month thereafter until the project is done.
Local projects, so we can be on site within two hours drive time, when needed.
A loan in a market you know is a different risk than a loan in a spreadsheet. Every loan we make is in Connecticut: real legal recourse, real foreclosure mechanics, broker and contractor relationships measured in years, and a partner who walks the property before the money moves.
- Position
- First-lien mortgage
- Geography
- Connecticut
- Wrapper
- Reg D 506(c)
How the debt fund differs from a syndication.
Both products serve accredited LPs. They are not substitutes; they are different tools for different objectives. Debt fund LPs trade equity upside for predictability, shorter duration, and a position higher in the capital stack.
Predictable, contractual income
Debt fund LPs receive a fixed coupon paid quarterly, regardless of whether the underlying property hits its business plan. In a syndication, distributions depend on the deal performing. The debt fund LP gets paid the same whether the sponsor crushes it or merely meets plan.
First position in the capital stack
Debt sits ahead of equity. If a deal underperforms, the fund gets paid before any GP or LP equity sees a dollar. Loans are secured by the property itself; in a worst case the fund forecloses and recovers principal from the asset.
Shorter, defined duration
Loans typically run 12 months. For an LP who wants their capital back on a known timeline, or who is parking money between bigger commitments, the debt fund is dramatically more liquid in practice than a 3 to 5 year syndication hold.
Diversification across many loans
A $100,000 check into a syndication buys exposure to one building, one market, one sponsor decision tree. The same check into the debt fund spreads across the entire loan book. One bad borrower does not blow up an LP's return; it gets absorbed by the portfolio.
Cleaner tax reporting; ideal for retirement capital
Debt fund returns are interest income, reported as 1099-INT or as ordinary income on a K-1. No depreciation recapture, no UBIT complications for self-directed IRA capital. That makes the fund a natural home for SDIRA money that is awkward to deploy into leveraged equity syndications.
No reliance on appreciation or exit timing
Equity syndication returns depend heavily on the sale or refinance event five years out, and on cap rates and market conditions at that moment. Debt fund returns are locked in at origination. The LP does not need the market to cooperate; the borrowers just need to perform, and if they do not, the collateral does.
The honest tradeoff: debt fund LPs trade upside for predictability. A syndication LP can hit a 1.8 to 2.2x equity multiple if the deal crushes; a debt fund LP gets their stated yield and that is it. This is the design, not a bug. It only fits the right investor: someone prioritizing capital preservation, current income, and shorter duration over swinging for the fences.
Discipline matters. We don't hunt for reasons to say "yes". We hunt for reasons to walk away. When we find them, we price and plan accordingly. Most sellers say "no". That's our model working as designed.
Character is what you do when no one's looking.
We never borrow to fund distributions.
Distributions begin only when a project is cash-flow positive. If the deal is not producing, neither is the distribution.
We never earn promote until you are whole.
Same class, same return threshold, same outcome. On syndications we co-invest on the same terms as our partners.
We never bury a bad outcome.
We publish an after-action report on every deal we close. The good, the bad, and the ugly all land in the investor portal.
We never chase a market we do not know.
We stick to our knitting. Connecticut first. Targeted Northeast markets outside of Connecticut, rarely and opportunistically. We see opportunity in Western Massachusetts and parts of Rhode Island, for example.
The newsletter
Monthly notes from the underwriting desk.
Deal memos, market analysis, and the deals we pass on. Delivered when they matter, not on a cadence schedule.
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