A. The Firm
Virtus Real Estate, LLC (“VRE,” “Virtus,” and/or “the firm”), a limited liability company formed under the laws of the State
of Texas, is a private fund adviser that structures, manages, promotes, sponsors, and through itself and affiliate entities
serves as general partner and/or investment manager for various real estate pooled investment vehicles (each, a “Fund”
or “Client”, collectively the “Funds” or “Clients”). Virtus was formed in 2009 and is ultimately primarily owned and controlled
by Terrell F. Gates III.
While VRE is registered as an investment adviser, its affiliates serving as Fund general partners or investment managers,
and all of their personnel, are supervised by VRE as if each such entity were so registered. Therefore, throughout this
Brochure, when we refer to “VRE,” “Virtus,” or the “firm,” we also refer to those affiliated entities and personnel, unless the
context indicates otherwise.
Virtus focuses on investment opportunities whose success does not require a robust economic environment, nor does it
depend on cap rate compression. Instead, Virtus seeks to capitalize on opportunities arising out of increasing demand that
can be sustained even in the face of a recession or a decline in general real estate values. Virtus seeks to achieve this by
concentrating on property types whose demand is driven by one of four major demographic trends: the aging of the baby
boomer generation, the coming of age of the “millennial” or “echo boomers,” the growth of the Hispanic market, and the
high mobility of the U.S. population. Within these trends, Virtus targets investments that meet
four criteria: the asset must
be viable regardless of the overall economy, there must be at least one structural risk mitigant, returns must be
commensurate with perceived risk, and a qualified operational partner must participate.
B. Description of Advisory Services Offered
VRE is an independent investment advisory firm that structures, manages, promotes, sponsors, and through itself and
affiliate entities, serves as General Partner for various real estate private funds.
VRE recommends securities transactions that include securities and strategies as itemized in Item 8 of this Brochure, and
as may be described in Offering Documents.
C. Client-Tailored Services and Client-Imposed Restrictions
VRE only manages the Funds. Each Fund has its own investment strategy described in its offering documents (the
“Offering Documents”).
D. Client Assets Under Management
All assets of the Funds are managed on a discretionary basis.
Virtus Assets Under Management as of December 31, 2023
Gross Asset Value Under
Management (1)
Assets Under Management
(2) Regulatory Assets (3)
$3,186 MM $1,657 MM $594 MM
Notes:
(1) NAV of all Virtus vehicles, plus unfunded limited partner commitments, plus property level and fund-level debt; excludes
the value of assets owned by third parties.
(2) NAV of all Virtus vehicles, plus unfunded limited partner commitments; excludes the value of assets owned by third
parties.
(3) 3(C)1 and 3(C)7 vehicles only. Does not include assets of 3(C)5 vehicles.