Offering Period
April through December 2005
Minimum Capital Commitment
$500,000
(to be drawn down over time based upon investment
requirements of the Partnership).
Return Objective
15% to 22% IRR, pre tax
Investors Preferred Return
Investors are entitled to an annual compounded
Preferred Return of 9% per annum on aggregate capital contributions
before the Manager is entitled to a carried interest in net profits.
Illiquidity
Shares are illiquid and involve a significant
amount of risk.
Fund Size
Investor Equity:
Minimum – $10 million
Maximum – $50 million
Call Period
HCP requires members to fund 5% of investor capital
upon subscription, and the remainder will be called as property
investments are funded over a period of 24 months. (1)
Fund Closing
December 31, 2005 (2)
Management Investment
The principals of HCP will invest, on a pari passu
basis, 5% of the capital raised for the Fund up to $1,000,000.
Asset Management Fee
An annual fee of 1%, paid quarterly based on the
total invested capital of the Fund. Accounting, investor reporting, tax
matters and Fund management will be provided.
Acquisition Fee
1% of total property costs with a minimum of
$100,000 and a maximum of $200,000 per transaction.
Management Incentive
Management receives: 20% of net profits above a
preferred cumulative of 9% to 16% on investor equity; 40% of net
profits over 16% to 22% on investor equity; and 50% of net profits over
22% on investor equity.
1. HCP, at its discretion, may extend the call
period for an additional twelve (12) months.
2. HCP, at its discretion, may extend the Fund
Closing until June 30, 2006.
