The Partners Fund recently invested in the fastest-growing downtown in the United States, Chicago's 'The Loop' neighborhood. In early 2023, we began mapping out areas with high residential growth and constrained supply. Several of the geographies where we've deployed capital have already proven to be great investments, including another recent investment in Omaha, Nebraska.

One area we had our sights on was Chicago. Chicago has one of the fastest-growing downtowns in the country, and minimal new development to keep supply low. Compare this to a city like Austin, where 16% of the city's new residential units are currently in development. New supply coming onto the market each month is impacting rent and occupancy rates.

A market like Chicago is experiencing some of the highest annual rent growth in the nation. While we expect growth to slow, there are many years of sustained, single-digit rent growth ahead.

Our investment in Chicago's Loop is our first in the state of Illinois. The 176-unit multi-family apartment complex boasts a 90%+ occupancy rate, as well as retail space anchored by long-term tenants. We anticipate 8-9% average annual cash-on-cash distributions through the holding period.

This is one of several real estate deals we've closed on this year, with others to come before the end of the year. With interest rates expected to come down in the near future, we also anticipate the refinancing of existing properties to raise cash for future investments while increasing returns for our investors.