Open Letter to Investors: COVID-19 Impacts & Outlook

Dear Investors,

With the market volatility in the past week and increased uncertainty surrounding the extent to which the Coronavirus outbreak could affect the global economy, we wanted to take some time to share our thoughts on how we believe this black swan event will impact the Fund’s current holdings and our approach to future acquisitions.  

An economic downturn will inevitably impact real estate markets and investment returns. While no one can predict the future, we want to reiterate that our Funds’ investment strategy is built to ride out economic turbulence and to successfully weather conditions such as these. Historically, multifamily housing has out-performed other sectors – in previous recessions, rents declined less than those of office, retail, and industrial properties and multifamily growth rates were considerably higher post-recession. Our properties are located in growing cities with diversified economies, which support cash flows and asset values. Furthermore, the fund is unleveraged, which means portfolio risk is low - that is the power of equity and a debt-free investment approach.

As the market evolves, we are committed to investing your capital wisely. Our focus is on the long-term view, and as always, our primary commitment is to protect and preserve your wealth. BENA Capital will remain highly discerning in the properties and geographies that we pursue. While we have a number of properties in the late stages of the acquisitions pipeline, we also recognize that asset prices still reflect seller expectations in a more normalized market. With global events like the Coronavirus and the international disputes over oil prices, that market is changing. Through the course of our due diligence, properties will be evaluated rigorously with that shifting backdrop in mind. We will execute on opportunities that will not only withstand volatility but will allow us to emerge from these troubled waters even stronger than before.

As always, if you have questions, concerns or comments, please feel free to reach out to us.

Best Regards and Stay Safe,

Kimberly Yeh

Managing Director – Acquisitions

BENA Capital, LLC

Real Estate Investments