August 2025 Portfolio Update – NNG Capital Fund Multifamily Assets
Email Update Sent: Sept. 26, 2025

Dear Investors,

A quick update for the month of August and first, thank you for your patience. I’ve had the opportunity to connect with some of you directly, and I truly appreciate the feedback and questions.

Transparency remains a top priority for us, and I want to keep you fully informed on our progress.

Over the past few months, I’ve spent a lot of time in the Southeast developing our teams and refining our systems. Business success comes down to four things: people, execution, strategy, and cash. The “people” part is always the most challenging, but we’ve made meaningful strides this summer by putting the right talent in place, building accountability, and tightening processes. Because we self-manage, we can control costs, reduce delays, and execute more efficiently.

Construction Projects

We are currently working on a 40-unit property in Birmingham, Alabama. Our strategy is to complete half of the units first and begin the lease while renovations continue on the remaining half. This staggered approach allows the property to generate income even during construction. That’s one of three multifamily projects currently in active construction.

Stabilization Strategy

For our stabilized assets, the focus is on achieving 90% physical occupancy for 90 days. That’s the threshold lenders and buyers require to support refinancing or sales at strong valuations. Anything less leaves value on the table, so all of our execution is tied to this milestone.

Suggested KPI Snapshot (August 2025)

The Cliffs (Macon, GA)

  • Current occupancy: 85% physical | 95% collections.

  • Renewals remain strong at 80%+, and renovated units are achieving rent premiums.

  • Focus: accelerating unit turns and boosting the leasing funnel.

  • Outlook: On pace to be refinance-ready by mid-Q1 2026.

 

The Summit (Macon, GA)

  • Current occupancy: low 70s (~73 units occupied).

  • Leasing demand is healthy, and we’ve reduced turn costs significantly through better vendor pricing.

  • Focus: speeding up unit turns and tightening collections.

  • Outlook: On track for stabilization and refinance readiness by Spring 2026.

 

Phoenix City (Phenix City, AL)

  • Current occupancy: 50.8% physical | 35% economic.

  • August collections: $20.4K with minimal delinquency.

  • CapEx: $55K budgeted for HVAC repairs on older units; 15 unit turns scheduled as vacancies roll.

  • Focus: faster turns, stronger marketing, and leasing conversions.

  • Outlook: Potential to reach 90% occupancy by late 2025 or early 2026, positioning refinance as early as Q2 2026.

 

Distributions & Outlook

Several of you have asked about distributions. While some had hoped for a January restart, the reality is that we’re not there yet. Our priority must remain stabilization. Once properties reach 90%+ occupancy for the required 90–120-day window, we will be in a position to refinance and create liquidity. We will evaluate where we are during this time to determine the path forward.

The good news is that the systems are in place, the right people are on the ground, and we’re hitting quarterly targets even if progress is slower than we’d like. We are making steady traction toward stabilization and remain committed to executing the business plan.

Thank you again for your trust and partnership.

Please don’t hesitate to reach out with any questions. I’ll continue to provide clear and transparent updates as we move forward.

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