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FAQ

Worcester Investments & Worcester Fund

Worcester investments is a family owned real estate asset manager located in Kansas City MO. The firm acquires, manages, and develops primarily multi-family real estate in the greater Kansas City area. Worcester owns and operates over $200mm of real estate which includes 3200 + apartment units.

Worcester Investments employs 130+ people and has collaborated with 75+ partners who have invested over $45+ million. The firm is led by co-founders Paul and Joel Worcester.

Worcester Investments’ strategy is to create value utilizing two primary approaches. First, Worcester will acquire underperforming multi-family communities and improve the financial performance of each property by leveraging the in-house property management and construction teams. Secondly, the firm will develop and manage new communities in strategic Kansas City area markets where there is opportunity for compelling investment returns.

Worcester adds value by combining a unique combination of focusing on primarily multi-family real estate in the greater Kansas City area. Focusing on these two elements enables a higher level of understanding and better decision making which leads to ultimately better financial returns for partners who invest with us.

Because se we focus on the Kansas City area multi-family market, we know how to identify value and avoid over paying for properties. We believe making prudent acquisitions is a key driver to investment returns. We review hundreds of opportunities in Kansas City every year and actively pursue less than 2% of those.

After a property is acquired, we add value by leveraging our in-house property management and construction teams to Improve operating performance by lowering costs, increasing occupancy, and increasing revenues.

Worcester acquires and develops communities in the greater Kansas City area only. We believe by focusing on the Kansas City market, we can identify great investment opportunities and we can leverage our property management resources leading to better operating efficiency and better investor returns.

Worcester is primarily focused on the multi-family real estate segment. This market offers compelling cash flows and investor returns, as well as, a market that offers Worcester Companies to have a positive impact on our neighbors and communities.

Yes, Worcester Companies has a significant investment in The Worcester Fund, thus, aligning the interests of fund investors with Worcester Companies.

Investors interested in investing in the Worcester Fund must satisfy the Accredited Investor rules set forth by the Securities Exchange Commission of the United States Government.

The primary contact for interested investors is Peter McHugh. He can be contacted at (816) 558-6402 or by email at petermchugh@worcester-investments.com.

The administrator of The Worcester Fund is Redwood Real Estate Administration, an affiliate of Fairway America. Redwood is the only third-party administration firm anywhere that focuses exclusively on non-institutional sized, real estate asset based funds, syndications, and managers.

Yes. K-1 tax returns are completed by The Worcester Fund accountant.

You will receive quarterly statements in addition to having 24/7 online access to your account.

The fund is available to non-US citizens. Non-US investors should seek tax advice as certain rules may apply to non-US investors.

An Accredited investor, in the context of a natural person, includes anyone who:

• earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR

• has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

• On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.

• In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

• any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or

• any entity in which all of the equity owners are accredited investors.

• In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

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