Ridgeside Apartments, Chattenooga, TN
148 Unit value-add multifamily offering in the Chattanooga, TN market. Highlights of the Offering
Highlights of the Offering:
· 148 units - Purchasing at a $1M discount
· Targeted 2.29x equity multiple
· 16-19% Targeted IRR
· 7-9% Average cash on cash ROI
· 3-5 year hold time
· Thriving market of TN, a landlord friendly state.
· Value add opportunity to raise rents by $175-$275/mo.
· 1979 Build
· $16 Million Purchase Price
· Buying at $108k/door costar predicts the area to sell for $200k/door in 5 years
· 506c Offering Open to Accredited Investors only
Improved Estimated Returns:
· 16-19% Targeted IRR -> now 19.90%
· 7-9% Average cash on cash ROI -> now 8.87%
· 4.75% 3 year fixed interest rate -> now 4.45%
· Targeted 2x equity multiple -> now 2.29
South Salt Lake Portfolio
80 Unit value-add multifamily offering in South Salt Lake, Utah
Highlights of the Offering:
Purchase Price - $17,430,000
80 units: Blair St - 24 units / White Pines - 56 units
Hold time 5-10 years
Equity Multiplier - 2.72-3.19x
AAR - Average Annual Return - 19.6%
Distribution Schedule - Quarterly (after the first 6 months)
Class A Shares (limited quantity)
Return structure: 8% preferred return followed by an 80/20 split
Minimum investment $250k
Maximum investment: $2 million
Projected IRR: 17.1%
Class B Shares
Return structure: 6% preferred return followed by a 75/25 split
Minimum investment $50k
Projected IRR: 15.9%
White Pines Apartments:
Purchase Price: $12,930,000
Price Per Unit: $230,892
Debt: $9.4 million financing, 3-year term, estimated 9.5% "fixed" interest rate
Blair St. Apartments:
Purchase Price: $4,500,000
Price Per Unit: $187,500
Debt: $2.55 million Freddie Mac loan, 5-year term, 6.3% interest rate
· 506c Offering Open to Accredited Investors only
Wasko Apartments
38 UNIT, TUCSON, AZ
Highlights of the Offering:
· 38 units -
· 100% Renovated
· Targeted 2.18x equity multiple
· 15.05% Targeted IRR
· 7-9% Average cash on cash ROI
· 5-7 year hold time
· Booming Tucson market
· Value add opportunity to raise rents by $175-$275/mo.
· $6.07M purchase price
· Buying at $160k/door. Our projected exit price in 7 years is $259,000 per unit, which is slightly above the high end of current sales valuation ($156,000-$192,500 per unit).
· Assuming current financing, we project a fixed interest rate of 3.45% for 7 years, and a 53% LTV.
· 506c Offering Open to Accredited Investors only
