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Caltier Fund I

Filed: 28 Sep 21, 11:41am

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 1-SA

 

SEMIANNUAL REPORT PURSUANT TO REGULATION A OF THE SECURITIES ACT OF 1933

 

For the fiscal semiannual period ended June 30, 2021

 

CALTIER FUND I, LP

(Exact name of registrant as specified in its charter)

 

Commission File Number: 024-11077

 

Delaware36-4920665
(State or other jurisdiction of(I.R.S. Employer Identification No.)
incorporation or organization) 
  
5965 Village Way, Ste 104-142
San Diego, California

 

92130

(Address of principal executive offices)(Zip Code)

 

(619) 344-0291

Registrant’s telephone number, including area code

 

Units

(Title of each class of securities issued pursuant to Regulation A)

 

 

 

 

 

In this report, the term “CalTier” “we”, or “the company” refers to CalTier Fund I, LP.

 

Some of the statements in this report constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would” or the negatives of these terms or other comparable terminology.

 

You should not place undue reliance on forward looking statements. The cautionary statements set forth in this annual report identify important factors which you should consider in evaluating our forward-looking statements. These factors include, among other things:

 

 overall strength and stability of general economic conditions and of the real estate industry more specifically;

 

 changes in the competitive environment, including new entrants;

 

 our ability to generate consistent revenues;

 

 our ability to effectively execute our business plan;

 

 changes in laws or regulations governing our business and operations;

 

 our ability to maintain adequate liquidity and financing sources and an appropriate level of debt on terms favorable to our company;

 

 costs and risks associated with litigation;

 

 changes in accounting principles, or their application or interpretation, and our ability to make estimates and the assumptions underlying the estimates, which could have an effect on earnings;

 

 other risks described from time to time in periodic and current reports that we file with the U.S. Securities and Exchange Commission.

 

This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative, but not exhaustive. New risk factors and uncertainties not described here or elsewhere in this annual report may emerge from time to time. Moreover, because we operate in a competitive and rapidly changing environment, it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. The forward-looking statements are also subject to the risks and uncertainties specific to the company including but not limited to the fact that we have limited operating history and have limited number of management and other staff. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this annual report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

 

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assume responsibility for the accuracy and completeness of the forward-looking statements. 

 

All forward-looking statements, expressed or implied, included in this semi-annual report are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

 

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this prospectus.

 

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes included in this semi-annual report. The following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements.

 

 

 

 

Item 1.Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

We are a Delaware limited partnership formed to acquire and manage a portfolio of multi-family properties and other real estate-related investments which may be wholly or fractionally owned. In addition, we may acquire debt or preferred equity that meet our investment objectives.

 

We plan to diversify our portfolio by investment type, investment size and investment risk with the goal of constructing a portfolio of real estate assets that provides stable, attractive returns to our investors. We may make our investments through direct ownership in real estate assets or in partnership with companies with investment objectives similar to ours. As of the date of this annual report, we have invested into a few real estate assets and are in the process of analyzing a couple more.

 

CalTier Realty, LLC is the General Partner and Manager of the company. CalTier Realty LLC is responsible for managing our day-to-day operations and our portfolio of real estate and other real estate-related assets. CalTier Realty, LLC also has the authority to make all of the decisions regarding our investments, subject to the limitation in our operating agreement and the direction and oversight. CalTier Realty, LLC and/or other affiliates of our General Partner will provide marketing, investor relations and other administrative services on our behalf.

 

Pursuant to our Regulation A offering, we are offering up to $50,000,000 in our Units.

 

Results of Operations

 

We were formed on January 23, 2019. We met our minimum of $100,000 and have commenced operations investing into assets that fit our target profile.

 

For the six month period until June 30, 2021 (“Interim 2021”) , our investments produced revenue of $1,695 and we had expenses of $133,975, which relate to professional fees and other costs related to the Regulation A offering. Accordingly, our net loss was $132,780 for Interim 2021.

 

Liquidity and Capital Resources

 

In order to conduct our proposed operation we need the net proceeds from this offering. In addition to those proceeds, we intend to obtain the required capital through a variety of resources, including using leverage (secured debt or short-term lines of credit) to acquire properties. The company seeks to keep the company’s overall portfolio leverage ratio at 65% or less. The foregoing targets exclude short-term lines of credit, specifically, the company may obtain lines of credit to provide working capital and to fund acquisitions. No debt is or will be recourse to the limited partners. We currently have no outstanding debt.

 

To date, we have made investments into assets. Because we have certain fixed operating expenses and have only recently made investments into real estate assets, we have been somewhat limited in the amounts we can make in distributions. However, as of July 30, 2021, we have produced $1,695 in distributions to our investors. As the fund and our assets grow, we intend to continue making distributions to our investors.

 

 

 

 

In addition to funds being allocated to expenses and making distributions to investors, certain funds, including during our offering stage will be distributed to our General Partner to offset certain organization and offering related fees.

 

Trends

 

The COVID pandemic has had a measurable effect on global and regional trends within our core business of real estate investing. We continue to identify and pursue potential assets, primarily multi-family value-add, as we believe this asset class to have high demand regardless of overall market and demand fluctuations. While the global pandemic may impact our ability to raise funds under the offering, our current position has allowed and will continue to allow us the flexibility to adapt in both investment strategy and property acquisitions accordingly.

 

Item 2.Other Information

 

None.

 

Item 3.Financial Statement

 

The accompanying semiannual consolidated financial statements are unaudited and have been prepared in accordance with the instructions to Form 1-SA. Therefore, they do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders’ equity in conformity with accounting principles generally accepted in the United States of America. Except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Company’s Annual Report on Form 1-K for the year ended December 31, 2020. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included, and all such adjustments are of a normal recurring nature. Operating results for the six months ended June 30, 2021 are not necessarily indicative of the results that can be expected for the year ending December 31, 2021.

 

 

 

 

CALTIER FUND I, LP

 

FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT

 

SIX MONTHS ENDED JUNE 30, 2021 AND JUNE 30, 2020

 

 

 

 

CALTIER FUND I, LP

 

STATEMENT OF FINANCIAL CONDITION

 

ASSETS June 30,
2021
(Unaudited)
  December 31,
2020
 
Deferred offering costs $-  $77,838 
         
Total assets $267,691  $169,135 
         
LIABILITIES AND PARTNERS' DEFICIT        
Liabilities        
Advances from related parties $202,690  $209,974 
Total liabilities  267,691   222,231 
         
Contingencies (Notes 1 and 6)        
         
Partners' deficit  (65,001)  (53,196)
         
Total liabilities and partners' deficit $267,691  $169,135 

 

See Notes to Financial Statements

 

 

 

 

CALTIER FUND I, LP

 

STATEMENT OF OPERATIONS AND CHANGES IN PARTNERS’ DEFICIT

(UNAUDITED)

 

FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND FOR PERIOD OF JANUARY 23, 2019 (INCEPTION DATE) THROUGH JUNE 30, 2020

 

  June 30, 2021  June 30, 2020 
INVESTMENT INCOME $1,695  $- 
         
EXPENSES        
Professional fees and other  133,975   157,847 
Total expenses  133,975   157,847 
         
NET LOSS $(132,780) $(157,847)
         
PARTNERS' DEFICIT, BEGINNING OF PERIOD $(69,993) $- 
         
Capital contributions      - 
         
Capital withdrawals      - 
         
Net loss per above  (132,780)  (157,847)
         
PARTNERS' DEFICIT, END OF PERIOD $(202,273) $(157,847)

 

See Notes to Financial Statements

 

 

 

  

CALTIER FUND I, LP

 

STATEMENT OF CASH FLOWS

(UNAUDITED)

 

FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND FOR PERIOD OF JANUARY 23, 2019 (INCEPTION DATE) THROUGH JUNE 30, 2020

 

  June 30, 2021  June 30, 2020 
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss $(132,780) $(157,847)
Changes in operating assets and liabilities:        
Advances from related parties  82,254   219,720 
         
Net cash provided by operating activities  (50,526)  61,873 
         
CASH FLOWS FROM FINANCING ACTIVITIES        
Deferred offering costs  (50,526)  (61,873)
         
Net cash used in financing activities  (50,526)  (61,873)
         
Net changes in cash and cash equivalents  62,034   - 
         
Cash and cash equivalents, beginning of period  -   - 
         
Cash and cash equivalents, end of period $62,034  $- 
         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION        
Cash paid during the period for interest $-  $- 

 

See Notes to Financial Statements

 

 

 

 

CALTIER FUND I, LP

 

NOTES TO THE FINANCIAL STATEMENTS

 

NOTE 1 –Nature of Operations

 

Nature of Operations

 

CalTier Fund I, LP (the “Partnership”), was formed on January 23, 2019 and is organized as a Delaware limited partnership formed to invest primarily in multi-family real estate properties in the United States. The Fund is managed by CalTier Realty, LLC, a California limited liability Partnership (the “General Partner”). The General Partner was formed in 2017 to be a California fund management and real estate acquisition company focusing on acquiring assets either on its own behalf or with strategic real estate partner(s). The Partnership was formed to raise funds under Regulation A of Title IV of the Jobs Act. Initially, the Partnership intends to raise up to $50 million from a wide range of individual and institutional investors, with a focus on international investors and individual non-accredited investors, to acquire multi-family and commercial real estate. Each Limited Partner’s liability is limited to the Partner’s capital contribution.

 

As of December 31, 2020, the Partnership had not commenced planned principal operations nor generated revenue. However, as of June 30, 2021, the Partnership had met its minimum and commenced operations by investing in a couple multi-family assets. The Partnership has commenced its planned principal operations, and although it has yet to incur significant additional expenses, as it continues to acquire and make investments into real estate assets, it anticipates incurring significant additional expenses. The Partnership is dependent upon additional capital resources for the commencement of its planned principal operations and is subject to significant risks and uncertainties; including failing to secure funding to operationalize the Partnership’s planned operations or failing to profitably operate the business.

 

The Partnership’s investment period commenced on the date of the initial closing and expires on the earlier of: (i) the date at which the maximum offering amount has been sold, (ii) the date which is one year from this offering being qualified by the U.S. Securities and Exchange Commission, and (iii) the date at which the offering is terminated by the General Partner. The Partnership shall continue indefinitely unless all investments are sold and distributions made to the Limited Partners or at the sole discretion of the General Partner at any point in time.

 

NOTE 2 –Summary of Significant Accounting Policies

 

Basis of Presentation

 

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Partnership is an investment Partnership and follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services – Investment Companies.

 

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents and Concentration of Cash Balances

 

The Partnership considers cash equivalents to be all highly liquid investments with a maturity of three months or less when purchased. The Partnership’s cash and cash equivalents in bank accounts, at times, may exceed federally insured limits. The Fund has not experienced any losses due to these limits.

 

 

 

 

CALTIER FUND I, LP

 

NOTES TO THE FINANCIAL STATEMENTS

 

NOTE 2 –Summary of Significant Accounting Policies (Continued)

 

Real Estate Investments

 

Investments in real estate are carried at fair value. Costs to acquire real estate investments are capitalized as a component of investment cost. The fair values of real estate investments are estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. Investments without a public market are valued based on assumptions made and valuation techniques used by the General Partner. Such valuation techniques include discounted cash flow analysis, prevailing market capitalization rates or earnings multiples applied to earnings from the investment, analysis of recent comparable sales transactions, recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties, consideration of the amount that currently would be required to replace the asset, as well as independent external appraisals. In general, the General Partner considers multiple valuation techniques when measuring the fair value of a real estate investment. However, in certain circumstances, a single valuation technique may be appropriate.

 

The fair value of real estate investments does not reflect the Partnership’s transaction sale costs, which may be incurred upon disposition of the real estate investments. Such costs are estimated to approximate 2% - 3% of gross property fair value. The Partnership also reflects its real estate equity investments net of investment level financing. Valuation adjustments attributable to underlying financing arrangements are considered in the real estate equity valuation.

 

The Partnership may invest in real estate and real estate related investments for which no liquid market exists. The market prices for such investments may be volatile and may not be readily ascertainable. In addition, there continues to be significant disruptions in the global capital, credit and real estate markets. These disruptions have led to, among other things, a significant decline in the volume of transaction activity, in the fair value of many real estate and real estate related investments, and a significant contraction in short-term and long-term debt and equity funding sources. This contraction in capital includes sources that the Partnership may depend on to finance certain of its investments. These market developments have had a significant adverse impact on the Partnership’s liquidity position, results of operations and financial condition and may continue to adversely impact the Partnership if market conditions continue to deteriorate. The decline in liquidity and prices of real estate and real estate related investments, as well as the availability of observable transaction data and inputs, may have made it more difficult to determine the fair value of such investments. As a result, amounts ultimately realized by the Partnership from real estate investments sold may differ from the fair values presented, and the differences could be material.

 

Fair Value Measurement

 

FASB guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

 

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

 

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

 

 

 

 

CALTIER FUND I, LP

 

NOTES TO THE FINANCIAL STATEMENTS

 

NOTE 2 –Summary of Significant Accounting Policies (Continued)

 

Fair Value Measurement (continued)

 

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

 

The investments in real estate will fall into Level 3 category, therefore, fair-value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of the reporting date.

 

Investments in Real Estate Transactions

 

Purchases and sales of real estate investments are recorded on a transaction basis. Distributions from the real estate investment are first applied to the cost of the investment until the total cost has been recovered, after which point any further distributions are recorded as realized gains. Further, realized gains and losses on real estate investment transactions will be recognized upon the sale of the investment. Changes in unrealized gains and losses are included in the results of operations.

 

Organizational Costs

 

In accordance with FASB ASC 720, Other Expenses, organizational costs, including accounting fees, legal fees, and costs of incorporation, are expensed as incurred.

 

Advertising Costs

 

The Partnership expenses advertising costs as incurred. Advertising costs expensed from January 29, 2019 (inception date) through December 31, 2020 were $91,192.

 

Risks and Uncertainties

 

The Partnership’s business and operations are sensitive to general business and economic conditions in the U.S. and worldwide along with local, state, and federal governmental policy decisions. A host of factors beyond the Partnership’s control could cause fluctuations in these conditions, including but not limited to: its ability to raise sufficient funds from investors to acquire multi-family and commercial real estate, the availability of suitable real estate properties to acquire, and changes to Regulation A. Adverse developments in these general business and economic conditions could have a material adverse effect on the Partnership’s financial conditions and the results of operations.

 

Deferred Offering Costs

 

The Partnership complies with the requirements of FASB ASC 946-20-25, Financial Services – Investment Companies and FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (SAB) Topic 5A - Expenses of Offering. Deferred offering costs consist principally of accounting and legal fees incurred in connection with an offering the Partnership intends to commence during 2020 under Regulation A. Prior to the completion of the offering, these costs are capitalized as deferred offering costs on the Statement of Financial Condition. The deferred offering costs will be charged against proceeds from Partner contributions upon the completion of the offering or to expense if the offering is not completed. Deferred offerings costs of $135,565 are capitalized to the Statement of Financial Condition as of December 31, 2020.

 

 

 

 

CALTIER FUND I, LP

 

NOTES TO THE FINANCIAL STATEMENTS

 

NOTE 2 Summary of Significant Accounting Policies (Continued)

 

Income Taxes

 

The Partnership is a limited liability partnership. Accordingly, under the Internal Revenue Code, all taxable income or loss flows through to its partners. Therefore, no provision for income tax has been recorded in the statements. Income from the Partnership is reported and taxed to the Partners on their individual tax returns.

 

The Partnership complies with FASB ASC 740, Income Taxes, (“FASB ASC 740”) for accounting for uncertainty in income taxes recognized in an enterprise’s financial statements, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. FASB ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Based on the Partnership’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Partnership’s financial statements. The Partnership believes that its income tax positions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position.

 

The Partnership may in the future become subject to federal, state and local income taxation though it has not been since its inception. The Partnership is not presently subject to any income tax audit in any taxing jurisdiction.

 

Subsequent Events

 

The Partnership evaluated all significant events or transactions that occurred through June 30 2021, the date these financial statements were available to be issued.

 

NOTE 3 –Management Fees and Other Transactions with Affiliates

 

The Limited Partnership Agreement describes the terms under which the General Partner will manage the Partnership. The Partnership is subject to the following fees under this agreement:

 

Reimbursement of Organization and Offering

 

The Partnership’s General Partner and its affiliates will be reimbursed for actual organizational and offering expenses incurred. Organization and offering expenses consist of the actual legal, accounting, printing, marketing, advertising, filing fees, any transfer agent costs and other accountable offering-related expenses which were incurred prior to the inception of the Partnership.

 

Deferred offering costs of $135,565 along with other general expenses were incurred by a related party on the Partnership’s behalf and are shown as advances from related parties on the Statement of Financial Condition and amounted to $337,694 at December 31, 2020. This related party advance is unsecured, interest-free, and repayable on demand.

 

Asset Management Fee

 

The Partnership will pay the General Partner an asset management fee equal to an annualized rate of 3.0%, which will be based on the net offering proceeds as of the end of each quarter, and thereafter will be based on Partnership’s Net Asset Value (“NAV”) at the end of each prior quarter. This fee will be payable quarterly.

 

 

 

 

CALTIER FUND I, LP

 

NOTES TO THE FINANCIAL STATEMENTS

 

NOTE 3 –Management Fees and Other Transactions with Affiliates (Continued)

 

Asset Acquisition Fee

 

For each real estate investment, the Partnership will pay its General Partner or its designated affiliate 1.0%-2.5% of the investment’s purchase price. This fee will be paid at the discretion of the General Partner, but no later than the liquidation of the real estate investment.

 

Construction Management Fee

 

For each real estate investment, for which the Partnership will require to construct or renovate, the Partnership will pay its General Partner or its designated affiliate 5.0%-7.5% of the construction or renovation budget. This fee will be paid at the completion of the construction or renovation is substantially complete.

 

Disposition Fee

 

For each real estate investment, the Partnership will pay its General Partner or its designated affiliate 0.5%-1.0% of the investment’s sale price. This fee will be paid at the disposition of the investment’s real estate.

 

Property Management Fee

 

The General Partner may cause the Partnership to engage a third party to provide property management services with respect to properties acquired by the Partnership, or may elect to provide such services itself (or through an affiliate of the General Partner). In the event that the General Partner (or an affiliate thereof) provides any such property management services, the Partnership shall pay the General Partner or its applicable affiliate a market-rate property management fee.

 

NOTE 4 –Partners’ Deficit

 

Limited Partners have no rights, power, or authority to act for or bind the Partnership. No Limited Partner shall take any part in the conduct or control of the Partnership’s business and each Limited Partner shall only have the right to vote upon Partnership matters for election of successor General Partner, dissolution of the Partnership, other matters, consents, and approvals. The General Partner is authorized to cause the Partnership to pay all expenses relating to the formation and organization of the Partnership. Each Limited Partner’s interest in the Partnership is represented by units of interest (“units”) that entitles the holder to all of the rights and interest of the holder under the agreement, including, without limitation, the right to share in the net profits, net losses, cash flow, distributions, and capital of the Partnership.

 

Allocations of Profits and Losses

 

Net profits and net losses shall be determined separately for each investment in such manner as is determined in the sole and absolute discretion of the General Partner. Any net profits or net losses that are not directly attributable to any investment shall be allocated among any or all of the investments in such manner as is determined in the sole and absolute discretion of the General Partner.

 

Specific allocation of net losses and net profits will be allocated to the Partners in accordance with the provisions as described in the Agreement of Limited Partnership.

 

 

 

 

CALTIER FUND I, LP

 

NOTES TO THE FINANCIAL STATEMENTS

 

NOTE 4 –Partners’ Deficit (Continued)

 

Distributions

 

Distributions of net profits will not be made to the Limited Partners until the earlier of: (i) twelve (12) months from the date of admission of the first Limited Partner is admitted to the Partnership pursuant to the offering, or (ii) the Partnership’s investments in real estate assets begin generating cash flows, in the sole and absolute discretion of the General Partner, to the extent that cash is available. As of June 30, the Partnership had made distributions from cash flow from real estate investments in the amount of $1,695.

 

Redemptions

 

A Limited Partner may request limited quarterly withdrawals from the Partnership by offering a discounted redemption price prior to holding the investment for two (2) years. Pursuant to this limited redemption, a Limited Partner may only have one outstanding redemption request at any given time and request redemptions up to the lessor of 10,000 units or $50,000. The discounted redemption will range between 1.0% and 3.0% based on the holding period of the investment and partially at the discretion of the General Partner based on the liquidity of the Partnership and operating cash flow needs.

 

NOTE 5 –Indemnifications

 

In the normal course of business, the Partnership enters into contracts that contain a variety of representations and warranties that provide indemnification under certain circumstances. The Partnership's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Partnership that have not yet occurred. The Partnership expects the risk of any future obligation under these indemnifications to be remote.

 

NOTE 6 –Financial Risks and Uncertainties

 

Liquidity Risk

 

Liquidity risk is the risk that the Partnership will not be able to raise funds to fulfill its commitments including inability to sell investments quickly or close to fair value.

 

Market Risk

 

Market risk is the potential loss that can be caused by increasing or decreasing in the fair value of investments resulting from market fluctuations.

 

Credit Risk

 

Credit risk represents the potential loss that would occur if counter parties fail to perform pursuant to the terms of their obligations.

 

 

 

 

CALTIER FUND I, LP

 

NOTES TO THE FINANCIAL STATEMENTS

 

NOTE 7 –Financial Highlights

 

Pursuant to the American Institute of Certified Public Accountants' Audit and Accounting Guide - Audits of Investment Companies, certain non-registered, non-unitized investment companies are required to disclose certain ratios related to net investment income, expenses, and internal rate of return (“IRR”).

 

The below ratios are calculated for all Partners taken as a whole and are presented on an annualized basis. The IRR was computed from inception of the Partnership based on the actual dates of the cash inflows and outflows, as applicable, and the residual value of the Partners’ capital account, net of all incentive allocations, as of each measurement date. An individual Partner’s ratios and internal rate of return may vary based on different management fee and incentive arrangements (as applicable) and the timing of capital transactions.

 

Net investment income ratio  0.63%
     
Expense ratio  50.00%
     
IRR  0.44%

 

 

 

 

Item 4. Exhibits

 

The documents listed in the Exhibit Index of this report are incorporated by reference or are filed with this report, in each case as indicated below:

 

2.1Certificate of Limited Partnership (1)
2.2Limited Partnership Agreement (2)
4.1Form of Subscription Agreement (3)
6.1Posting Agreement with Manhattan Street Capital (4)

 

(1) Filed as an exhibit to the CalTier Fund I, LP. Regulation A Offering Statement on Form 1-A (Commission File No. 024-11077 and incorporated herein by reference. Available at, https://www.sec.gov/Archives/edgar/data/1771232/000114420419045488/tv529785_ex2-1.htm)

 

(2) Filed as an exhibit to the CalTier Fund I, LP. Regulation A Offering Statement on Form 1-A (Commission File No. 024-11077 and incorporated herein by reference. Available at, https://www.sec.gov/Archives/edgar/data/1771232/000114420419045488/tv529785_ex2-2.htm)

 

(3) Filed as an exhibit to the CalTier Fund I, LP. Regulation A Offering Statement on Form 1-A (Commission File No. 024-11077 and incorporated herein by reference. Available at, https://www.sec.gov/Archives/edgar/data/1771232/000114420419045488/tv529785_ex4-1.htm)

 

(4) Filed as an exhibit to the CalTier Fund I, LP. Regulation A Offering Statement on Form 1-A (Commission File No. 024-11077 and incorporated herein by reference. Available at, https://www.sec.gov/Archives/edgar/data/1771232/000114420419045488/tv529785_ex6-1.htm)

 

   

 

 

 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized,  in the City of San Diego, State of California, on September 28, 2021.

 

CalTier Fund I, LP

 

By: CalTier Realty, LLC, its General Partner

 

 By:  /s/ Matthew Belcher 
 Name: Matthew Belcher 
 Title: Manager 

 

This annual report has been signed by the following persons in the capacities and on the dates indicated.

 

/s/ Matthew Belcher 
Name: Matthew Belcher 
Title: Manager of CalTier Realty, LLC (Chief Executive Officer, and Manager of General Partner)
Date: September 28, 2021 
  
/s/ Travis Hook 
Name: Travis Hook 
Title: Manager of CalTier Realty, LLC (Chief Information  Officer and Principal Accounting Officer)
Date: September 28, 2021