"Dallas Multi-Family Value Add "

I invested with Touro on a multi-family value add deal in Dallas in June 2022. Bad timing, I know. I believe Touro has been doing a good job navigating a difficult market. They are very diligent about sending a monthly investment update that clearly outlines all the major numbers including occupancy, rents, and units upgraded. The property has been struggling with higher vacancy than expected. That has prevented them from raising rents as much as they had projected. They have been working hard to fill vacancies with better PM and marketing. One area that was handled well was interest rate changes. The team had an interest rate cap in place and was able to weather the touch interest rate environment without getting liquidated. They also had a plan in place to be flexible on when they sold. This should allow them to continue operating the property profitably for a few more years if needed until they can get a good exit cap rate and make sure the property is fully leased. Summary: This investment is likely performing poorly due to interest rate and market rent factors, but the sponsor mitigated the major risks that could have liquidated the investment and has communicated well through a tough environment.