CAPROCK YIELD FUND
Conservative Real Estate Investments Providing Consistent ROI for Income-Minded Investors
CapRock Yield Fund Metrics
$6.5M
Class A Funding Target
20M
Target Fund Value
8%
Investor Preferred ROI
Quarterly
Distribution Schedule
About Us
Your Trusted Partner in Real Estate Investments
CapRock Yield Fund continues to acquire a balanced portfolio of income-producing commercial properties based upon ultra-low risk fundamentals in order to provide our investors with a reliable and consistent ROI, distributed quarterly, while achieving long term capital growth for our founding principles, who provide financing guarantees of the acquired assets.
Strategy
CapRock Yield Fund LLC is a real estate holding company which invests into its subsidiaries in order to purchase an asset class consisting of ultra-low risk real estate investments often tenanted by national corporations, many of which are publicly traded and secured by corporate guarantees from these tenants who qualify for Investment Grade Credit. This strategy endeavors to provide a safe, predictable, and consistent return to our investors.
RECENT INVESTMENT
Tractor Supply & Goodwill Anchors
CITY: CENTER, TX
PURCHASE PRICE:
$2,575,000
INVESTMENT METRICS:
8.97% CAP RATE | 10.89%+ CASH ON CASH
ASSET SUMMARY:
- Both TS & GW are corporate guaranteed tenants
- Both lease renewals were negotiated while in escrow and 10 year renewals just signed at closing!
- Just about 9% in-place cap rate with 15,000 sq ft of vacant 3rd space for huge upside
- Upon lease up of the vacant space, we expect in-place cap rate well into the teens.
RECENT INVESTMENT
Dollar General
City: Buffalo, NY
PURCHASE PRICE:
$1,500,000
INVESTMENT METRICS:
7.52% CAP RATE | 10% CASH ON CASH
ASSET SUMMARY:
- True NNN Lease Structure
- Corporate Guarantee by Dollar General (National & Investment-Grade Tenant)
- Incremental rent increases built-in to base of lease
- Newer Construction: Built in 2012
RECENT INVESTMENT
Family Dollar
City: Cochran, GA
PURCHASE PRICE:
$1,408,000
INVESTMENT METRICS:
6.25% CAP RATE | 7.88%+ CASH ON CASH
ASSET SUMMARY:
- Brand new Family Dollar with 10 year lease
- Corporate Guarantee by National Tenant
- Acquired via a 1031 exchange where profits were secured from asset sale and asset upgraded to FD
RECENT INVESTMENT
Dollar General
City: Stephentown, NY
PURCHASE PRICE:
$1,766,600
INVESTMENT METRICS:
6.40% CAP RATE | 9%+ COC
ASSET SUMMARY:
- Newer Construction: Built in 2020
- True NNN Lease Structure
- Corporate Guarantee by Dollar General (National & Investment-Grade Tenant)
- 15 Year Lease + 20 years of Options w/ Built-in increases
RECENT INVESTMENT
Dollar General
City: Caroga Lake, NY
PURCHASE PRICE:
$1,778,672
INVESTMENT METRICS:
6.25% CAP RATE | 9%+ COC
ASSET SUMMARY:
- Newer Construction: Built in 2020
- True NNN Lease Structure
- Corporate Guarantee by Dollar General (National & Investment-Grade Tenant)
- 15 Year Lease + 20 years of Options w/ Built-in increases
RECENT INVESTMENT
Kroger Building
PURCHASE PRICE:
$2,000,000
INVESTMENT METRICS:
7.8% CAP RATE | 13%+ CASH ON CASH
ASSET SUMMARY:
- Leased to Main Kroger Grocery Store Supporting Local Community for 30+ Years
- “Essential” and Internet-Proof Tenant Business
- Long Term Lease Just Renewed, Guaranteed by Kroger
- Newer Community Schools Built Adjacent to Location
RECENT INVESTMENT
Dollar General
City: Remington, IN
PURCHASE PRICE:
$1,075,000
INVESTMENT METRICS:
8%+ CAP RATE | 13%+ CASH ON CASH
ASSET SUMMARY:
- True NNN Lease Structure
- Corporate Guarantee by Dollar General (National & Investment-Grade Tenant)
- Incremental rent increases built-in to base of lease
- Newer Construction: Built in 2012
RECENT INVESTMENT
Shoppes at Wilmington
PURCHASE PRICE:
$2,835,000
INVESTMENT METRICS:
8%+ CAP RATE | 15%+ CASH ON CASH
ASSET SUMMARY:
- Rent-a-Center, Dollar Tree, Planet Fitness
- All Long Term Leases, Guaranteed by Corporate Tenants, and Recent Renewals in ‘20 & ‘21
- Signalized, Main Intersection and Out-Parcel to Lowes Entrance
- New Roof Installed in 2019 with 15 Year Warranty
Net Leased Investments: A Shining Light During the Pandemic
Passive Real Estate Investments and Funds have always been a favorite investment of high net-worth individuals and family offices. However, the pandemic has had a crushing effect on retail centers and office buildings due to forced closures and work from home mandates. Apartments/residential/Multi-Family real estate have experienced similar problems due to the eviction moratorium. Net Leased Investments with quality and “Essential” tenants have excelled during this time and are poised for continued success and popularity amongst seasoned investors.
Organizational Leaders
Jeffrey Taleff
Fund Manager
Violetta Varenkova
Co-Manager
Davor Rom
Strategic Advisor
Shari Kasner
Head of Asset Management
Jeffrey Taleff
Fund Manager
Jeff has over 20 years of experience in the real estate industry, spanning many different investment categories and experiences. Immediately upon graduating from the University of Cincinnati in 1999 with a minor in Commercial Real Estate, Jeff moved to South Florida to pursue a career in Real Estate. Working with a commercial branch of Century 21 in Hollywood, FL, Jeff lead the commercial leasing division of the company, with a focus on industrial real estate and office properties. During the early 2000’s Jeff acquired many single family and multi-family housing units, building a sizable portfolio before the age of 30. Using one such property, Jeff completed an IRS Code 1031 Tax Deferred Exchange for the first time in order to invest in the burgeoning Florida Land Development business.
He created his first “fund” in 2005 for the sole purpose of purchasing residential land and lots during the land boom. All investors in his first fund doubled their investment within 10 months. Using this knowledge, Jeff has partnered with countless individuals and corporations over the years in order to create win/win opportunities in many ventures. Jeff is also currently on the Board of Directors of a large light industrial builder and developer based in Dallas, TX that is on the verge of a national rollout.
Along with his wife, Angelica, the Taleff’s own and manage several Net Leased Investments themselves and understand the business model intimately. From acquisitions, financing and sales, to property management, due diligence, cost segregation studies and 1031 Exchanges; they have a sophisticated team of specialists, accountants, attorneys, engineers and brokers in their trusted network; all over the United States.
Violetta Varenkova
Co-Manager
Along with Mr. Taleff the Fund shall be co-managed by Mrs. Varnekova. She brings to the Fund over a decade of experience in asset acquisition, portfolio aggregation, and strategic real estate fund deployment across multiple states. Her contacts in the national real estate industry will benefit the Fund from an opportunity standpoint. She has created and will bring to the Fund existing and proprietary systems which will deliver on its objectives and goals. Violetta’s expertise and experience with management systems and structure allows her real estate organizations to easily manage many properties at once, utilizing a proprietary software system and corporate procedures.
Violetta is renowned for her ability to structure multi-state real estate platforms and her existing businesses will complement the Fund’s strategies. Violetta’s real estate expertise derives from an impressive historical track record of over 1,300 properties navigated since the Great Recession of 2008. She and her husband own a number of successful companies in the real estate industry. Violetta is a mother of two and resides with her family in Boca Raton, Florida.
Davor Rom
Strategic Advisor
Davor Rom is a real estate investor & entrepreneur. He has over 15 years of successful real estate endeavors on national levels and international levels. Mr. Rom is instrumental in advising on Fund structure options and operational controls for a multi-state investment organization. In addition, he advises the Caprock Organization on high-level aspects of Fund development and goals, including: concept, structure, goals, operational framework, and future growth planning.
Davor is an Investor and Manager in private real estate partnership opportunities with high net-worth individual. Mr. Rom assists in strategic acquisition opportunities, often sourced off-market. He is also well-regarded as a disposition expert, having sold over a thousand properties thus far throughout in his career.
One of Davor’s favorite quotes:
“Try not to become a man of success. Rather become a man of value.”
-Albert Einstein
Shari Kasner
Head of Asset Management
Shari is a 15+ year Commercial Real Estate professional with a strong background and proficiency in Property & Asset Management, and Net Lease Operations & Administration. As Head of Asset Management at CapRock Management, she concentrates on working with her team to maintain profitability and control costs within each asset, and provide for strong tenant relations, risk management and financial oversight for triple net lease, single-tenant properties, office buildings and retail strip malls.
Shari is specifically poised to provide crucial support to our growing fund and organization. She spent 5 years as a financial advisor, and in that capacity, discovered that the basis of intelligent, consistent and ongoing wealth is real estate. She is also the 3rd generation of a family of real estate investors, and the active manager of a varied portfolio of real estate investments including retail shopping centers, medical office complexes, and multi-family properties.
Investor Advantages
Open-Ended Structure:
Typical Fund’s use a “closed-ended” Fund structure, which can be ROI prohibitive to investors as their capital commitments must be contributed to an escrow (typically earning no ROI) until the fund has raised all commitments and is able to “close” the Fund and begin its operations. To the benefit of CapRock’s investors, we have created an open-ended structure where investors deposit commitments of only 10% of their total formal commitments, until such time that the Fund has identified its next acquisition and is nearing a closing stage.
Conservative & Risk Averse Characteristics:
CapRock’s structure focuses on highly conservative principles while allowing flexibility for investors, namely:
- 8% preferred ROI to investors, payable on a quarterly basis.
- Near term investor commitments of only 3 years, while renewable options may also be provided.
- Investments are not attributed to one property, rather risk is mitigated and spread across all properties under Fund ownership.
- Initial deposits of only 10% of total commitments, until such time that funds are ready to be deployed, allowing placed capital to earn ROI in a more expeditious manner than most typical “closed-fund” structures.
- Allowing investor commitments to begin earning ROI shortly after total investments are committed.
Fully Committed Principles & Fund Management:
A unique structure showing fully aligned investor & Fund Management goals:
- No Fund Management fee (typically 2-3% of deployed capital), proving full commitment by Fund Managers; and yet an additional layer of comfort for the Fund’s 8% preferred ROI payable to its investors.
- Full Principal confidence with personal guarantees often provided on all mortgages exhibiting complete commitment to the goals and success of the Fund.
Future Impact:
In light of the current real estate market conditions, we believe that investment grade, long-term net-leased real estate is well-suited to provide stabilized income in the midst of potential ongoing economic turbulence. “Investment Grade” describes the qualities of the tenant with which the lease is secured. Investment Grade leases are leases to tenants that maintain a credit rating of BBB- or higher, as rated by S&Ps, Moody’s, or Fitch.
Benefits of Investment-Grade, Long-Term Net Leases:
CapRock Yield Fund is focused on building long-term and sustainable income for its investors.
The Fund will continue to utilize market data and experiences to identify the most attractive assets that fit the vision and goals of The Fund. Some benefits of CapRock Yield Fund are as follows:
- Stable and predictable income. Investment Grade Leases are typically backed by strong corporations
- Leases are long term and not affected by short term market fluctuations
- Attractive and consistent rate of return
- Simplicity of Investment
- Rewarding investment with low risk. According to Moody’s, the long-term default rate of investment grade tenants is just 0.30%