Blanchard & Calhoun Commercial has been actively involved in raising equity from third party investors for more than 20 years. Early on, investments were made on a project basis. In 2008, the company adopted a strategy of raising equity through private investment funds managed by entities related to the company. Blanchard & Calhoun Commercial currently serves as the sponsor of Oak Fund I and Oak Opportunity Investments, which are briefly described below. These funds are both closed to new investors.
Oak Fund I, LLC
The initial fund, Oak Fund I, was initiated in 2008. It was formed for the purpose of investing in operating entities that will acquire and subsequently develop, maintain, finance, manage, operate, lease, and ultimately sell real estate properties that meet the investment criteria of the Fund. The Manager of Oak Fund I is Oak Capital, LLC. Oak Fund I was open for investment for approximately 12 months during 2008 – 2009, achieving $12,000,000 in total accredited investor subscriptions. Fully subscribed by 2009, the fund is fully invested and enjoying positive financial results.
Oak Opportunity Investments, LLC
The second major fund, Oak Opportunity Investments, was initiated in 2009. It was formed to capitalize on current dislocations in the commercial real estate sector of the economy. The Fund intends to acquire, on an opportunistic basis, distressed and undervalued real estate assets, distressed loans, and loans collateralized by distressed real estate assets. It will also undertake new developments to take advantage of current lower construction costs. The Manager of Oak Opportunity Investments is Oak Capital II, LLC. Oak Opportunity Investments was open for investment for 12 months during 2010—2011, achieving approximately $13,000,000 in total accredited investor subscriptions. The fund is currently 80% invested and 100% committed, and it is enjoying positive financial results.