The New Orleans Redevelopment Fund has announced they are launching a second fund to continue projects to revitalize Mid-City and adjacent neighborhoods by purchasing blighted and underused properties primarily in the multifamily space
Led by partners Cullan Maumus, Alex Hernandez,Gregory Gatto and Mike Niemtzow, the original fund was formed in 2013. Since its launch, they’ve acquired 18 properties and transformed them into 42 apartment units.
The Fund’s mission is “to improve the quality of the City’s housing stock and its communities, while offering compelling returns to private accredited investors.” “We’re proud to be part of the City’s renaissance, and we are extremely excited to put the Fund’s money to work,” managing partner Alex Hernandez said in a statement.
The Fund says they’ve achieved 18-20% gross revenue returns and above an 18% IRR on their first fund investments.
“We feel that in our first fund, we had to prove ourselves as a capable and successful developer of properties that benefit our community and our investors. We set a high bar for ourselves to begin with, and with our achievements so far we have raised above what we set out to accomplish. That is why we are moving forward with our second fund.” says Managing Partner, Gregory Gatto.
NORF is currently seeking equity investments from accredited investors for NORF 2. The Fund, over the next two years, will invest up to $10 million in equity throughout the Greater New Orleans area. While the focus of NORF 1 was mainly to acquire, redevelop and lease residential properties, NORF 2 will expand efforts by also acquiring lots and building new single and multi-family residential units and commercial properties.