CCM Development Fund III

CCM Development Fund III is a pooled, open-ended real estate development fund. It uses investor capital to partner with experienced residential developers in U.S. markets with a housing shortage, and it finances the creation of new housing—mostly land development and homebuilding—so that as lots and homes are sold, cash comes back into the fund. The fund made its initial investments in Q2 2025 and currently invests across projects in Georgia and Florida, including single-family land development and Class A multifamily development. As of Q4 2025, the fund is invested in two active projects with experienced developer partners. The annualized net IRR since inception is 14.9%, as of May 2026.

A classical real estate investment fund usually buys existing, operating assets (an apartment building, a portfolio of rentals, etc.) and earns returns mainly from ongoing income + long-term appreciation.u003cbru003eA development fund finances creating the asset (turning dirt into buildable lots, building homes, etc.). Returns are driven more by execution and the sales cycle (selling lots/homes), not just “collect rent and wait.”u003cbru003eDevelopment has more moving parts, but it also has a natural mechanism for returning capital because you’re selling pieces of the project (a lot, then a house) rather than waiting to sell a whole building at the end.

CCM Development Fund III’s “home base” is residential development in housing-short markets:u003cbru003e- Land development: buy land, put in roads/utilities, create buildable lots, then sell lots to builders (or proceed into vertical construction).u003cbru003e- Homebuilding exposure (selectively): in some projects the fund’s capital is also involved through the build/sale of homes, so capital comes back as homes sell.u003cbru003e- Occasional adjacent product types: build-for-rent as a strategy they’ve evaluated and an apartment development as an exception case.

A key “tilt” is staying closer to higher-velocity, more affordable product (entry-level / working-class / median new-home buyer) rather than ultra-high-end product that can get stuck in a slow market.

Typically, the fund forms a joint venture (JV) with a regional developer, where CCM provides the majority of the required equity and the developer contributes meaningful “skin in the game.” A common pattern is CCM ~80% / developer ~20%.

A major theme is preferred equity (sometimes similar economically to mezzanine), designed so investors have a “paid-first” position relative to the developer’s common equity. A plain-language example: a bank is senior; then CCM sits behind the bank; and CCM receives cash flow after the bank until a negotiated return hurdle is met, then the remaining upside shifts more heavily to the developer. (The exact hurdle/waterfall varies by deal; the governing fund documents control.)

Risk controls are layered:u003cbru003e• Don’t take the riskiest part of the development timeline if you don’t have to – They generally prefer investing once entitlements/approvals are in hand, i.e., “when it’s time to move dirt,” specifically to avoid entitlement risk.u003cbru003e• Underwrite conservatively – “Haircut everything.” In practice: they take developer projections and build internal expectations with downside tolerance.u003cbru003e• Pick product and markets with better “velocity” – They prefer product that moves (entry-level / more liquid buyer pools) so the project is less likely to stall in a downturn. On the market side, the process considers housing shortage and affordability dynamics (including metrics like months’ supply and payment affordability).u003cbru003e• Diversification through a fund structure – A fund (multiple deals) versus a single project: investors in the fund are spread across multiple underlying developments, and investors receive deal-by-deal transparency in reporting.u003cbru003e• Active asset management – Operational rigor includes weekly calls with developer partners, tracking financials “in parallel,” and even access/visibility into bank accounts depending on structure.u003cbru003e• Institutional controls: administrator and audits – A third-party administrator has direct visibility into fund cash, helps control wiring with documentation, supports distribution calculations; and the fund is audited.

Because development sells in pieces, money starts returning earlier than many “wait for the big exit” private investments. A typical timing example: money starts coming back after ~18 months (once roads/utilities are in and lots sell, or homes are built and sold), and then it can stretch over a 3–4 year arc depending on the project.

From the dossier description of the current fund: Development Fund III targets housing-short markets and offers quarterly distributions and semi-annual liquidity after a one-year lock-up (for accredited investors).u003cbru003eFrom the longer explanation of the open-ended structure:u003cbru003e• they set a share price every quarter, and investors can subscribe or redeem at that NAV,u003cbru003e• but investors make a one-year commitment (lock-up),u003cbru003e• and redemptions require six months’ notice so the fund can manage cash through normal asset sales, a line of credit, and/or incoming subscriptions,u003cbru003e• and there are limits/gates (not everyone can redeem at once; excess requests can roll to the next window).u003cbru003eIt’s “less liquid than Microsoft, more liquid than many long lock-up private investments.”

• Diversification: one fund = exposure to multiple developments rather than one project.u003cbru003e• Professional oversight + controls: ongoing monitoring + third-party administration/audit practices.u003cbru003e• But: you give up single-asset control, and you accept fund-level rules on liquidity.

Buy-and-hold can have compelling tax benefits and “let it grow” simplicity, but there’s a structural difference: in development you’re effectively selling “1% of the project at a time” (a lot or a home), which can create more natural cash flow back than holding one big building where partial liquidity is hard.

Development tends to have capital recycling earlier (because assets sell as they’re produced) versus waiting until year 4 or year 7 for a large realization in some private equity structures.

Private credit is often “more conservative” because it sits senior to equity in the capital stack; CCMD III is equity-oriented, but it attempts to shape the risk profile with preferred equity positioning.

Stocks: daily liquidity, real-time price discovery.u003cbru003eCCMD III: quarterly NAV/share price and limited liquidity with lock-up/notice/gates.

Public markets can reprice instantly based on sentiment. Real estate tends to reprice more slowly; plus, real estate’s relationship with interest rates can sometimes provide diversification benefits (while also acknowledging correlation can rise in crises).

Hard assets are often discussed as a general inflation hedge concept, while acknowledging timing matters.

• Access to a niche most individuals can’t efficiently do alone: diversified residential development partnerships in housing-short markets.u003cbru003e• Downside-conscious structuring: preferred equity / “paid first” mindset and conservative underwriting.u003cbru003e• A liquidity profile that’s not daily-liquid but also not “see you in 10 years”: one-year lock, six-month notice, and liquidity windows as described in the fund model.u003cbru003e• The fund targets markets where housing permits significantly lag estimated demand. For example, in the Atlanta metro area where the fund has its largest investment, housing inventory remains well below the approximately six-month level considered balanced, with local unemployment holding below the national average, supporting continued housing absorption.

CCM Development Fund III is our open-ended residential development fund. We pool capital and invest alongside experienced regional developers in housing-short U.S. markets, financing projects that turn land into buildable lots and homes. We typically structure investments as joint ventures with meaningful partner co-investment and often use preferred equity so investors are paid before the developer. Liquidity is limited but planned: there’s a one-year lock-up, then redemptions are available with six months’ notice and subject to fund limits, with NAV set quarterly.