Ark7 Properties LLC

Key economics

Preferred return

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Hurdle rate

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LP / GP split

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GP catch-up

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GP clawback

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GP commitment

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Diligence findings (15 · 6 high/critical)

• high
  DDQ gap: Does the fund engage an independent auditor?The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.
• high
  DDQ gap: Does the fund have a GP clawback provision?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• high
  DDQ gap: What is the LP/GP carried-interest split above the preferred return?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• high
  DDQ gap: What is the preferred return (hurdle) rate offered to LPs?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• high
  Numeric inconsistency — Asset Management Fee rate 15% vs 10%The offering body consistently states the Asset Management Fee is 15% of Free Cash Flows, but the audited financial statements notes for 2024 state it is 10% of Free Cash Flows, a material inconsistency that could mislead investors about the fee burden.
• high
  Unfilled placeholder text — [__________]Unfilled template tokens for Initial Qualification Date, Open Date, and Closing Date shipped in the Series Offering Table for all 13 series, indicating the document is not final.
• medium
  Broken cross-reference — Series #WGI3ZThe Distribution Rights section references 'Series #WGI3Z' as having a 15% Asset Management Fee, but Series #WGI3Z is not listed anywhere in this Offering Circular, suggesting a stale cross-series reference left over from a prior filing.
• medium
  DDQ gap: Does the fund use a third-party fund administrator?The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.
• medium
  DDQ gap: Is there a GP catch-up, and at what rate?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• medium
  DDQ gap: What is the GP's capital commitment (skin in the game)?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• medium
  Defined-term defect — Homestead PropertyEvery Asset Manager section uses the wrong property nickname 'Homestead Property' regardless of which property is being described (Mabel, California, Bonar, Solitude, Creole, Laminar Creek, etc.), indicating a global copy-paste substitution failure.
• medium
  Document-quality defect — APL formation date inconsistencyThe unaudited financial statement notes state APL was formed on October 31, 2018, while the audited notes for the year ended December 31, 2024 state APL was formed on July 24, 2019 -- two different formation dates cited in the same document.
• medium
  Document-quality defect — Series #RUSUU loan payoff year 2051The Down Payment Loan section for Series #RUSUU states the loan 'was paid off in 2051,' an impossible future date that is a clear typographical error (should be 2021 or similar past year).
• low
  Spelling / typo — broken sentence in Distribution Upon LiquidationThe Distribution Upon Liquidation section contains a grammatically broken sentence with a missing defined term: 'may include the and its affiliates' (the word 'Managing Member' or similar term has been deleted).
• low
  Spelling / typo — inacceptableThe word 'inacceptable' (not a standard English word; the intended word is 'acceptable') appears in every property's inspection report boilerplate across all 13 series property sections.

DDQ readiness — 38% covered

5 answered · 1 partial · 7 gaps of 13 standard questions.