North Carolina Coastal North Carolina Coastal

Transcription

North
Carolina
Coastal
North Carolina Coastal
MULTIHOUSING PROPERTY OFFERING
Page 1 / 48
Multihousing Property Offering
You are invited to invest in an opportunity to acquire three multifamily properties totaling 653 units in the coastal region of North Carolina.
We are able to structure this investment to provide for either a participation in all three properties or in any one or two of the three. The North
Carolina Coastal Portfolio will be acquired in a single transaction, but each property will be held in separate ownership entities and financed
independently.
Our goal is to finance 2 properties with long term, fixed debt, and hold them for cash flow. We are looking at financing terms for a 10 year,
fixed-rate loan for a 5 to 10 year hold. The third property we plan to reposition, upgrade, and sell within 2 to 3 years.
Please find attached the description and analysis of the transaction.
We propose a structure with a 10% preferred return and a 75/25 split thereafter, up to a 20% return; then a 50/50 split for returns in excess of
20%.
We expect an initial return in excess of 15% annually on a $9,355,528 million total equity investment, and a total acquisition cost of
approximately $31,200,000. The general partners will invest a minimum of 20% of the equity.
Lenny Blevins, our joint general partner, has been managing and investing with us for over 20 years, and is expected to oversee operation on a
daily basis. Together, we have acquired over 2.000 units in the Southeast, and enjoy a very strong relationship with our property management
company, Hawthorne Residential Partners.
Our track record is available and shows total returns well above 30% annually. We encourage your investment in all three properties, or if you
prefer, in any of the three properties.
Page 2 / 48
Brynn Marr Village - 301 Village Dr - Jacksonville, NC 28546
• Consists of both renovated and “classic” unit interiors – renovated unit interiors feature maple
cabinetry, faux-granite countertops, brushed nickel hardware and black appliances
Year Built
Total Units
Total Sf
1973 & 1975
196
• full amenity package featuring a large swimming pool area and sundeck, fitness center, grills and
picnic area, laundry center, two playgrounds, pet stations and rentable storage units
165,320
• Excellent location in close proximity to the entrance to Camp Lejeune Marine Base, only 1.7 miles
Average Unit Size
843
from the recently redeveloped Jacksonville Mall and Onslow Memorial Hospital, as well as nearby
Coastal Carolina Community College
Market (PU | PSF)
$804 | $0.95
• 65% of units are “classic” finish level, providing potential interior upgrades that are currently showing
$50 – 75 premiums
Colony Village - 3301 Brunswick Ave. - New Bern, NC 28562
• Colony Village features both “classic” and renovated unit interiors – upgraded units typically consist of
oak cabinetry, faux-granite or resurfaced countertops, black appliances and brass-finish hardware
Year Built
1972
Total Units
171
Total Sf
139,950
Average Unit Size
818
Market (PU | PSF)
$710 | $0.87
• Access to major local demand drivers including; Historic downtown New Bern, Cherry Point Military
Base, Carolina East Medical Center, Craven Community College and the Bosch Home Appliance
Manufacturing Plant (1.6 miles from community)
• Community upgrade potential through addition of “Bark Park” and business center, as well as a fi
center near the pool area in a location currently utilized by maintenance personnel.
$50 – 75 premiums
Liberty Crossing - 200 Carmen Ave - Jacksonville, NC 28540
• Liberty Crossing has renovated a relatively small number of units totaling only 12% of the 286
Property facts
residential units.
Year Built
1972
Total Units
286
Total Sf
265,136
Average Unit Size
927
Market (PU | PSF)
$764 | $0.82
• renovated units have brushed nickel hardware and lighting, as well as a higher grade of cabinetry,
countertops and appliances than “classic” units
• The community is within close proximity to area schools and is only ½ mile from Jacksonville High
School. it is also convenient to the primary retail corridor, Western Boulevard, featuring Jacksonville
Mall and a host of major national retailers (Target, Best Buy, Lowe’s, PetSmart)
$50 – 75 premiums
Page 3 / 48
Page 4 / 48
North Carolina
North Carolina has a population of about 10,000,000
inhabitants. It has gained many different industry sectors
recently. Science, technology, energy and math, or STEM,
industries in the area surrounding North Carolina's capital
have grown 17.9% since 2001. In 2010 North Carolina's
total gross state product was $424.9 billion. The working
population is employed across the major employment
sectors. The economy of North Carolina covers 15
metropolitan areas. In 2014, North Carolina was chosen as the third-best state for business by Forbes Magazine:
Forbes – “People have descended on North Carolina for the past decade, and it boasts one of the highest net
migration rates in the U.S. Many are chasing jobs. The state’s unemployment rate was stuck above 10% for most
of 2009 through 2011, but was down to a recent 6.7% and the outlook is bright. North Carolina has the smallest
union workforce in the U.S. in percentage terms. The resulting benefit is labor costs that are 16% below the national
average-third lowest in the country. North Carolina has ranked in the top five overall each year of our Best States
study.” November 2014
Tax rate for tax year 2015
New, flat North Carolina tax rate: 5.75% effective for tax year 2015
Page 5 / 48
SWOT Analysis
Strength
Weakness
+ Strong North Carolina management
presence
+ Excellent management capabilities in the
state
+ Stable communities
+ Senior officers are residents of the
Carolina's
-
Opportunities
Threats
+ Terrific cash on cash return
+ Good knowledge of the marketplace
• Third tier markets
-
Page 6 / 48
Older properties 1970s
Restricted interest from institutions
Harder to market upon exit
Craven County and New Bern
Craven County
Largest City
New Bern
Population
105,864 (2015)
Density
146/square mile
Quick-Facts:





Median income for a household in the county: $46,299
Median income for a family: $50,689
Males median income: $28,163 versus $21,412 for females
Per capita income for the county: $23,487
Population growth in Percentage
Households: 46,668
Historical population
Census
Pop.
%±
2000
91,436
12.0%
2010
103,505
13.2%
2015
104,489
1.0%
Est.
2020
111,358
6.6%
Page 7 / 48
New Bern, NC
New Bern is the county seat of Craven County, North Carolina, United States. Founded in 1710, New Bern is the
second oldest town in North Carolina and is centrally located along the coast. It is the largest city in Craven County,
and according to the U.S. Census Bureau, it is home to 30,817 people (2015). This accounts for an immense
population growth since 2000 of about 28%. After the American Revolution, New Bern became wealthy and quickly
developed a rich cultural life. At one time New Bern was called ‘the Athens of the South’. Accordingly, New Bern
has over 150 sites included in the National Register of Historic Places. The following two organizations are towers
in the community, and are huge contributors to New Bern's growth:
1. Fleet Readiness Center East aboard Marine Corps Air Station Cherry Point :
 Plays an important part in national defense, and employs more than 4,100 people who mostly live in Craven
County. It provides maintenance, engineering and logistics support for Navy and Marine Corps aviation, as well
as other armed services, governments and federal agencies and occupies nearly 16,000 acres
2. Carolina East Medical Center :
 Employs 2,350 people including hundreds of physicians and more than 500 volunteers who are dedicated to
providing excellent medical care and leading the way toward advanced diagnostic and therapeutic services
The Coastal Carolina Regional Airport is a public airport located 3 miles south of the central business district of
New Bern. Future job growth over the next ten years is predicted to be 33.30%.
Page 8 / 48
New Bern in Context
Income Per Capita
Page 9 / 48
Onslow County and Jacksonville
Largest City
Jacksonville
Population
200,922 (2015)
Density
233/square mile
Quick-Facts:





Median income for a household in the county: $45,450
Median income for a family: $40,692
Males median income: $22,061 versus $20,094 for females
Per capita income for the county: $21,084
Households : 60,071
Historical population
Census
Pop.
%±
2000
150,355
0.3%
2010
177,772
18.2%
2015
200,922
13%
Est. 2020 217,875
8.4%
Page 10 / 48
Jacksonville, NC
Jacksonville is the county seat of Onslow County, and the home of the United States Marine Corps Base Camp
Lejeune and Marine Corps Air Station New River.
Demographically, Jacksonville is the youngest city in the United States with an average age of 22.8 years old, which
can be attributed to the large military presence. Construction of Camp Lejeune caused a population explosion. The
low age may also be in part due to the population drastically going up over the past 80 years, from a mere 783 in
the 1930 census to 70,071 in 2015. Growth continued to be fueled by both young Marine families and military
retirees. The once quiet farming community has grown into the business, retail, medical, banking, and cultural
center for Onslow County. Nevertheless, the primary migration draw continues to be the U.S. Marine Corps.
MARINE CORPS BASE CAMP LEJEUNE
Quick Facts:
 The Base occupies 246 square miles and contains 6,946 buildings.
 The Base and surrounding community is home to an active duty, dependent, retiree, and civilian employee
population of 190,000.
 Camp Lejeune generates nearly $3 billion in commerce each year
In 2014, Forbes magazine ranked Jacksonville as the fifth fastest-growing small city in the U.S. and is the commercial
hub of Onslow County. The unemployment rate in Jacksonville is 7.60%, with job growth of 0.14%. Future job
growth over the next ten years is predicted to be 32.70%.
Page 11 / 48
Jacksonville in Context
Income Per Capita
Page 12 / 48
Page 13 / 48
Executive Summary
PORTFOLIO HIGHLIGHTS
Property
Location
Brynn Marr Village
Jacksonville, NC
Colony Village
Liberty Crossing
Total/Average
Year Built
# Units
1973/75
196
New Bern, NC
1972
171
Jacksonville, NC
1972
286
1972
653
HIGH QUALITY, PROFESSIONALLY MANAGED, WELL-LOCATED COMMUNITIES THAT OFFER
OUTSTANDING VALUE-ADD UPSIDE THROUGH LIGHT UNIT RENOVATION
•
Professionally managed by Bell Partners, the communities are wellmaintained and occupied, strong cash flow and located within
approximately 40 miles of each other, allowing for convenient portfolio
management
•
A notable percentage of units in each community have received an
attractive upgrade and have shown demonstrated upside in rental income
for additional renovations throughout the properties
•
Property offering presents a unique opportunity to acquire either on an
individual or portfolio basis at significantly below replacement cost
•
Limited new construction in both markets provides greater opportunity
for rental increases through renovation
Page 14 / 48
Portfolio Overview
-
Coastal NC Portfolio
Recap
Updated: 4/29/15
Property Summary
12:38 PM
Investment Summary
NC Coast
570,406
$47.51
653
$41,500
$47,757
$69,936
various
Name
Location
Square footage
Price per square foot
Units
Price per unit
Price per unit fully loaded
Price per unit at Sale
Year constructed
Capitalization
Purchase price
Closing costs/fees
Escrows
Capital Improvements
Total Acquisition cost
Debt
Mezz
Equity
$
$27,099,500
$1,500,092
$300,000
$2,285,500
$31,185,092
21,829,564
$
9,355,528
Total Funds
Residual Analysis
$
IRR 3 Year Hold (8.50 cap exit)
$21,829,564
10 year I/O
4.25%
927,756
Assumptions
Notes
Year of Disposition
Average Cash on Cash Return
Initial Investment
Cash flow - Year 1
Cash flow - Year 2
Cash flow - Year 3
Cash flow - Year 4
Cash Flow - Year 5
2019
9,355,528
1,656,026
2,151,323
2,523,102
2,625,376
2,733,560
$3,881,803
8.50%
$45,668,276
$664,800
$21,829,564
$0
Cash Proceeds
Debt Financing
$
Sale 2019 (5 year hold)
NOI
Terminal cap rate
Sale price
1.50% Less: cost of sale + third party
Less: oustanding debt
Less: equity payback
$31,185,092
Senior Debt
Supplemental
Terms
Rates (Senior)
Rates (Supplemental)
Senior Debt Service
Supplemental Debt Service
7.75%
8.50%
Cap Rate at Purchase
Exit Cap (Year 5)
24.99%
17.70%
23.00%
26.97%
28.06%
29.22%
Page 15 / 48
$23,173,912
47.21%
40.94%
37.34%
Sources and Uses
Sources
Amount
First mortgage proceeds
Equity investor
21,829,564
9,355,528
Total Sources
Uses
31,185,092
Amount
Purchase price of property
Financing costs
Escrows
Upfront Reserves-real estate taxes
Security deposit funding
Working capital reserve
Total Reserves
CAPEX
Real estate closing costs
Legal
Title insurance
Doc stamps and intangibles
First years insurance policy
Lender legal fees
Engineering
Application fee
Appraisal
Survey
DD Fee/Acq Travel
Acquisition fee
Total Real Estate Closing Costs
Total Uses
27,099,500
163,707
100,000
100,000
100,000
300,000
2,285,500
75,000
100,000
15,000
78,400
75,000
30,000
55,000
15,000
20,000
60,000
812,985
$
Page 16 / 48
1,336,385
31,185,092
TOTAL INCOME
Time Period
FY2014
653
# of units
Actual/Budget
INCOME
Per Unit
Base rent
Increase in Market Rent
Gross Potential Income
Vacancy
Loss to Lease
Concessions
Model Unit
Admin Units
Prepaid Rent
Collections
Bad debt expense
Total Income Adjustments
Rental Income
Pest Income
Premium Rents (Corp and MTM)
Utilities
Misc. Other Income
Total Other Income
Total Income
Economic occupancy
Year over Year Rev Growth
9,219
$
(829)
$
$
(1,911)
0
(1,632)
1,632
0
0
2,282
2,749
5,031
6,663
$
FY2014
$
$
$
$
$
$
$
$
$
$
$
FY2015
653
0.91
$
FY2015
6,019,895
$
$
6,019,895 $
(541,282) $
(1,247,969) $
$
(44,782) $
(97,493)
(1,931,526)
4,088,369
80,209
383,400
461,808
925,417
5,013,786
91.0%
6,080,094
156,720
6,236,814
(425,607)
FY2016
653
0.94
$
FY2016
$
$
$
$
(875,000) $
$
(45,462) $
6,140,895
313,440
6,454,335
(429,863)
FY2017
653
0.96
$
FY2017
0.97
$
FY2018
$
$
$
$
6,202,304 $
391,800
6,594,104 $
(434,161) $
(525,000) $
$
(46,154) $
(225,000) $
$
(46,857) $
$
(63,774) $
(64,412) $
$ (1,409,843) $ (1,065,428) $
$ 4,826,971 $ 5,388,907 $
$
81,813 $
83,449 $
$
$
$
$
391,068 $
398,889 $
$
471,044 $
480,465 $
$
943,925 $
962,804 $
$ 5,770,896 $ 6,351,710 $
93.0%
93.0%
FY2018
653
6,660,045
FY2019
653
0.98
FY2019
$
6,726,645
6,660,045 $
(466,203) $
6,726,645
(470,865)
(100,000) $
$
(47,572) $
(48,299)
(65,056)
(771,074)
5,823,030
85,118
406,867
490,074
982,060
6,805,090
93.0%
$
$
$
$
$
$
$
$
$
(69,838)
(683,613)
5,976,432
86,821
415,004
499,876
1,001,701
6,978,133
93.0%
$
$
$
$
$
$
$
$
$
(70,537)
(589,701)
6,136,945
88,557
423,305
509,873
1,021,735
7,158,680
93.0%
OPERATING EXPENSES
Real estate taxes
Insurance
Management fees
Total Non Controllable Expenses
Payroll
Utilities
Maintenance
Turnover
General & administrative
Landscaping
Contracts
Advertising & promotion
Total Controllable Expenses
Total Operating Expenses
529
400
378
$
$
$
338,534
246,463
147,175
1,200
994
175
300
150
4,476
$
$
$
$
$
$
$
$
$
$
345,305
261,200
246,905
853,409
783,600
648,870
114,275
227,515
118,149
89,752
77,068
78,576
2,137,804
2,991,214
5,806
$ 2,100,864
$ 2,779,683
1,307
250
100
3,169
$
$
$
$
732,172 $
768,222 $
636,147 $
137,922 $
282,043 $
115,832 $
87,992 $
75,557 $
77,035 $
2,180,750 $
2,912,922 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
352,211
266,424
271,658
890,293
799,272
661,847
116,561
232,065
120,512
91,547
78,610
80,147
2,180,560
3,070,853
$
$
$
$
$
$
$
$
$
$
$
$
$
$
359,255
271,752
291,222
922,229
815,257
675,084
118,892
236,707
122,922
93,378
80,182
81,750
2,224,172
3,146,401
$
$
$
$
$
$
$
$
$
$
$
$
$
$
366,440
277,188
298,653
942,280
831,563
688,586
121,270
241,441
125,380
95,245
81,785
83,385
2,268,655
3,210,935
$
$
$
$
$
$
$
$
$
$
$
$
$
$
373,769
282,731
306,348
962,848
848,194
702,358
123,695
246,270
127,888
97,150
83,421
85,053
2,314,028
3,276,876
$ 3,280,857
$
3,658,689
$
3,767,198
$
3,881,803
927,756 $
927,756
Year over Year NOI Growth
Coverage Ratio (Amortizing)
Coverage Ratio (Interest Only)
NET OPERATING INCOME
Debt Service
Supplemental Loan Debt Service
Capital reserves
Cash After Deferred Payment (hide)
Total
Cash after Debt Service
0.0%
300
0
$
$
$
$
-
$
927,756 $
195,900
$
$
1,123,656
$
$ 1,656,026
927,756 $
201,777
$
$
1,129,533
$ 2,151,323
927,756 $
207,830
$
$
$
1,135,587
$
2,523,102
Page 17 / 48
214,065
$
$
220,487
$
1,141,822
$
1,148,244
$
2,625,376
$
2,733,560
Residual Analysis
2019 - year 5
$ 3,881,803
8.50%
$ 45,668,276
685,024
21,829,564
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
23,153,687
IRR Over Hold Year 4
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
37.34%
1
2015
2
2016
3
2017
4
2018
5
2019
(9,355,528)
(9,355,528)
37.34%
1,656,026
1,656,026
2,151,323
2,151,323
Page 18 / 48
2,523,102
2,523,102
2,625,376
2,733,560
2,625,376
23,153,687
25,887,247
Residual Analysis
2018 - year 4
$ 3,767,198
8.50%
$ 44,319,972
664,800
21,829,564
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
21,825,608
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
40.94%
1
2015
2
2016
3
2017
4
2018
(9,355,528)
(9,355,528)
40.94%
1,656,026
1,656,026
2,151,323
2,151,323
Page 19 / 48
2,523,102
2,523,102
2,625,376
21,825,608
24,450,984
Residual Analysis
2017 - year 3
$ 3,658,689
8.50%
$ 43,043,396
645,651
21,829,564
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
20,568,181
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
47.21%
1
2015
2
2016
3
2017
4
2018
(9,355,528)
(9,355,528)
47.21%
1,656,026
1,656,026
2,151,323
2,151,323
Page 20 / 48
2,523,102
20,568,181
23,091,282
-
-
Page 21 / 48
Executive Summary
Brynn Marr Village
301 Village Drive
Jacksonville, NC 28546
EXECUTIVE SUMMARY
INVESTMENT SUMMARY
Year Built
1973 & 1975
Units
196
Total SF
165,320
Average Unit Size
843
Market Rent (Unit | SF)
$804 | $0.95
Effective Rent (Unit | SF)
$600 | $0.71
Occupancy
92.9%
Brynn Marr Village is superbly located 2.5 miles from Marine
Corps Base Camp Lejeune’s main gate and adjacent to Lejuene
Boulevard and the base’s secondary entrance gate. With 45,600
active duty personnel, the base is vital to the Marine Corps’
mission and gained 4,073 net military personnel from 20052012. Camp Lejeune occupies 153,439 acres with 14 miles of
beach along the Atlantic.
INVESTMENT HIGHLIGHTS
• High quality, professionally managed apartment community
• Demonstrated value-add upside
• Excellent location ideally situated near Camp Lejuene Marine
Corps Base, and in close proximity to abundant area retail
locations and employers
Page 22 / 48
Brynn Marr Village
-
Brynn Marr
Recap
Updated: 4/29/15
Property Summary
12:33 PM
Investment Summary
Brynn Marr
NC Coast
165,320
$48.31
196
$40,744
$47,630
$76,498
various
Name
Location
Square footage
Units
Price per unit
Year constructed
Capitalization
Purchase price
Closing costs/fees
Escrows
Debt
Mezz
Equity
$
$7,985,861
$558,702
$105,000
$686,000
$9,335,563
6,534,894
$
2,800,669
Total Funds
Residual Analysis
$
$6,534,894
5 yr I/O
4.25%
277,733
Assumptions
Notes
Year of Disposition
Initial Investment
Cash flow - Year 1
Cash flow - Year 2
Cash flow - Year 3
Cash flow - Year 4
Cash Flow - Year 5
2019
2,800,669
520,295
664,767
834,419
878,045
930,551
$1,274,463
8.50%
$14,993,688
$215,300
$6,534,894
$0
Cash Proceeds
Debt Financing
$
NOI
Terminal cap rate
Sale price
$9,335,563
Senior Debt
Supplemental
Terms
Rates (Senior)
Senior Debt Service
7.75%
8.50%
Exit Cap (Year 5)
27.34%
18.58%
23.74%
29.79%
31.35%
33.23%
Page 23 / 48
$8,243,494
53.65%
46.04%
41.87%
Brynn Marr
Sources and Uses
Sources
Amount
6,534,894
Equity investor
2,800,669
Total Sources
Uses
9,335,563
Amount
Financing costs
Escrows
Total Reserves
CAPEX
Legal
Title insurance
Lender legal fees
Engineering
Application fee
Appraisal
Survey
DD Fee/Acq Travel
Acquisition fee
Total Uses
7,985,861
50,393
35,000
35,000
35,000
105,000
686,000
25,000
33,333
15,000
78,400
25,000
10,000
50,000
5,000
7,000
20,000
239,576
$
Page 24 / 48
508,309
9,335,563
Brynn Marr
BRYNN MARR
Time Period
FY2014
196
# of units
Actual/Budget
INCOME
Per Unit
Base rent
Vacancy
Loss to Lease
Concessions
Model Unit
Admin Units
Prepaid Rent
Collections
Bad debt expense
Rental Income
Pest Income
Utilities
Misc. Other Income
Total Other Income
Total Income
Economic occupancy
9,958
$
(946)
$
$
(2,381)
0
(2,200)
2,200
0
0
897
880
1,776
3,977
$
FY2014
$
$
$
$
$
$
$
$
$
FY2015
196
1.02
$
FY2015
1,951,672 $
$
1,951,672 $
(185,496) $
(466,689) $
$
(21,561) $
(23,951) $
(697,697) $
1,253,975 $
$
$
150,633 $
147,792 $
298,425 $
1,552,400 $
90.5%
1,971,189
47,040
2,018,229
(137,983)
FY2016
196
1.05
$
FY2016
$
$
$
$
(350,000) $
$
(21,777) $
1,990,901
94,080
2,084,981
(139,363)
FY2017
196
1.07
$
FY2017
FY2018
196
1.08
$
FY2018
FY2019
196
1.09
FY2019
$
$
$
$
2,010,810 $
117,600
2,128,410 $
(140,757) $
2,149,694 $
2,171,191
2,149,694 $
(150,479) $
2,171,191
(151,983)
(250,000) $
$
(21,994) $
(100,000) $
$
(22,214) $
(50,000)
$
(22,436) $
(22,661)
(19,712)
(529,472)
1,488,757
153,646
150,748
304,394
1,793,151
93.0%
$
$
$
$
$
$
$
$
$
(19,909)
(431,266)
1,653,714
156,719
153,763
310,481
1,964,196
93.0%
$
$
$
$
$
$
$
$
$
106,170
78,400
80,692
265,262
235,200
224,053
34,300
58,800
37,094
26,692
27,087
27,834
671,061
936,322
$
$
$
$
$
$
$
$
$
$
$
$
$
$
108,293
79,968
88,389
276,650
239,904
228,534
34,986
59,976
37,836
27,226
27,629
28,390
684,482
961,132
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(20,108)
(283,079)
1,845,331
159,853
156,838
316,691
2,162,022
93.0%
$
$
$
$
$
$
$
$
$
(21,497)
(244,412)
1,905,282
163,050
159,975
323,025
2,228,307
93.0%
$
$
$
$
$
$
$
$
$
(21,712)
(196,356)
1,974,835
166,311
163,174
329,485
2,304,320
93.0%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
112,668
83,199
100,274
296,141
249,596
237,767
36,399
62,399
39,365
28,326
28,745
29,537
712,135
1,008,276
$
$
$
$
$
$
$
$
$
$
$
$
$
$
114,922
84,863
103,694
303,479
254,588
242,522
37,127
63,647
40,152
28,893
29,320
30,128
726,378
1,029,856
1,174,533 $
1,220,031 $
1,274,463
OPERATING EXPENSES
Real estate taxes
Insurance
Management fees
Payroll
Utilities
Maintenance
Turnover
Landscaping
Contracts
542
400
412
$
$
$
1,200
1,143
175
300
150
$
$
$
$
$
$
$
$
$
$
104,088 $
71,877 $
45,591 $
221,556 $
206,480 $
219,660 $
52,624 $
116,636 $
36,367 $
26,169 $
26,556 $
27,288 $
711,780 $
933,336 $
5,806 $
619,064 $
1,353
250
100
3,318
4,672
$
110,459
81,567
97,291
289,317
244,702
233,105
35,686
61,176
38,593
27,771
28,181
28,958
698,172
987,489
Debt Service
Capital reserves
Total
0.0%
300
0
$
277,733 $
277,733 $
277,733 $
277,733 $
277,733
$
336,533 $
338,297 $
340,114 $
341,985 $
343,913
$
520,295 $
664,767 $
834,419 $
878,045 $
930,551
$
$
$
-
856,828 $ 1,003,064 $
$
58,800 $
$
60,564 $
$
62,381 $
Page 25 / 48
$
64,252 $
66,180
Residual Analysis
2019 - year 5
$ 1,274,463
8.50%
$ 14,993,688
224,905
6,534,894
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
8,233,888
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
41.87%
1
2015
2
2016
3
2017
4
2018
5
2019
520,295
520,295
664,767
664,767
834,419
834,419
878,045
930,551
878,045
8,233,888
9,164,439
(2,800,669)
(2,800,669)
41.87%
Page 26 / 48
Residual Analysis
2018 - year 4
$ 1,220,031
8.50%
$ 14,353,303
215,300
6,534,894
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
7,603,110
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
46.04%
1
2015
2
2016
3
2017
4
2018
520,295
520,295
664,767
664,767
834,419
834,419
878,045
(2,800,669)
(2,800,669)
46.04%
Page 27 / 48
7,603,110
8,481,155
Residual Analysis
2017 - year 3
$ 1,174,533
8.50%
$ 13,818,030
207,270
6,534,894
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
7,075,865
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
53.65%
1
2015
2
2016
520,295
520,295
664,767
664,767
3
2017
4
2018
(2,800,669)
(2,800,669)
53.65%
834,419
7,075,865
7,910,284
Page 28 / 48
-
-
Executive Summary
Colony Village
3301 Brunswick Ave New
Bern, NC 28562
EXECUTIVE SUMMARY
INVESTMENT SUMMARY
Year Built
1972
Units
171
Total SF
139,950
Average Unit Size
818
$710 | $0.87
$622 | $0.76
Occupancy
94.2%
Colony Village Apartment Homes is a 171-unit community
located in the Historic Coastal North Carolina town of New
Bern. Just a few miles from downtown, the community enjoys
easy access to all of the area’s significant economic drivers, as
well as popular retail locations.
• Attractive, well-maintained and professionally managed
apartment community with opportunities to enhance
amenity package offerings
• Significate value-add opportunity through unit interior
renovations
• Easy access to Historic Downtown New Bern and
Waterfront, as well as Cherry Point Marine Corps Air Base,
the Carolina East Medical Center, Bosch Home Appliance
manufacturing facility and other area economic drivers
Page 29 / 48
Colony Village
-
Colony Village
Recap
Updated: 4/29/15
Property Summary
12:22 PM
Investment Summary
Colony Village
NC Coast
139,950
$50.71
171
$41,500
$48,631
$61,575
various
Name
Location
Square footage
Units
Price per unit
Year constructed
Capitalization
Purchase price
Closing costs/fees
Escrows
Debt
Mezz
Equity
$
$7,096,500
$515,899
$105,000
$598,500
$8,315,899
5,821,129
$
2,494,770
Total Funds
Residual Analysis
$
$5,821,129
5 yr I/O
4.25%
247,398
Assumptions
Notes
Year of Disposition
Initial Investment
Cash flow - Year 1
Cash flow - Year 2
Cash flow - Year 3
Cash flow - Year 4
Cash Flow - Year 5
2019
2,494,770
388,597
500,843
569,502
587,880
589,862
$894,999
8.50%
$10,529,395
$157,294
$5,821,129
$0
Cash Proceeds
Debt Financing
$
NOI
Terminal cap rate
Sale price
$8,315,899
Senior Debt
Supplemental
Terms
Rates (Senior)
Senior Debt Service
7.40%
8.50%
Exit Cap (Year 5)
21.14%
15.58%
20.08%
22.83%
23.56%
23.64%
Page 30 / 48
$4,550,972
35.75%
32.21%
29.32%
Colony Village
Sources and Uses
Sources
Amount
5,821,129
Equity investor
2,494,770
Total Sources
Uses
8,315,899
Amount
Financing costs
Escrows
Total Reserves
CAPEX
Legal
Title insurance
Lender legal fees
Engineering
Application fee
Appraisal
Survey
DD Fee/Acq Travel
Acquisition fee
Total Uses
7,096,500
44,271
35,000
35,000
35,000
105,000
598,500
25,000
33,333
15,000
68,400
25,000
10,000
50,000
5,000
7,000
20,000
212,895
$
Page 31 / 48
471,628
8,315,899
Colony Village
COLONY VILLAGE
Time Period
FY2014
171
# of units
Actual/Budget
INCOME
Per Unit
Base rent
Vacancy
Loss to Lease
Concessions
Model Unit
Admin Units
Prepaid Rent
Collections
Bad debt expense
Rental Income
Pest Income
Utilities
Misc. Other Income
Total Other Income
Total Income
Economic occupancy
8,452
$
(736)
$
$
(1,302)
0
(1,135)
1,135
0
0
0
618
618
1,753
$
FY2014
$
$
$
$
$
$
$
$
$
FY2015
171
0.89
$
FY2015
1,445,294 $
$
1,445,294 $
(125,835) $
(222,721) $
$
(4,676) $
(23,360)
(376,592)
1,068,702
80,209
$
$
$
$
$
$
103,811 $
184,020 $
1,252,722 $
91.3%
1,459,747
41,040
1,500,787
(102,182)
FY2016
171
0.93
$
FY2016
$
$
$
$
(150,000) $
$
(4,770) $
1,474,344
82,080
1,556,424
(103,204)
FY2017
171
0.95
$
FY2017
FY2018
171
0.96
$
FY2018
FY2019
171
0.97
FY2019
$
$
$
$
1,489,088 $
102,600
1,591,688 $
(104,236) $
1,607,605 $
1,623,681
1,607,605 $
(112,532) $
1,623,681
(113,658)
(75,000) $
$
(4,865) $
(25,000) $
$
(4,962) $
$
$
(5,061) $
(5,163)
(10,948)
(267,900)
1,232,887
81,813
105,887
187,700
1,420,587
93.0%
$
$
$
$
$
$
$
$
$
(11,058)
(194,127)
1,362,298
83,449
108,005
191,454
1,553,752
93.0%
$
$
$
$
$
$
$
$
$
77,211
68,400
63,926
209,537
205,200
158,629
29,925
39,171
31,883
24,478
8,489
25,979
523,755
733,293
$
$
$
$
$
$
$
$
$
$
$
$
$
$
78,755
69,768
69,919
218,442
209,304
161,802
30,524
39,954
32,521
24,968
8,659
26,499
534,231
752,673
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(11,168)
(145,367)
1,446,321
85,118
110,165
195,283
1,641,605
93.0%
$
$
$
$
$
$
$
$
$
(12,057)
(129,651)
1,477,954
86,821
112,368
199,189
1,677,143
93.0%
$
$
$
$
$
$
$
$
$
(12,178)
(130,998)
1,492,683
88,557
114,616
203,173
1,695,856
93.0%
OPERATING EXPENSES
Real estate taxes
Insurance
Management fees
Payroll
Utilities
Maintenance
Turnover
Landscaping
Contracts
452
400
374
$
$
$
1,200
928
175
125
150
$
$
$
$
$
$
$
$
$
$
75,697 $
61,406 $
36,725 $
173,828 $
247,543 $
155,519 $
23,139 $
38,403 $
31,258 $
23,998 $
8,323 $
25,470 $
553,653 $
727,481 $
5,806 $
525,241 $
687,295 $
801,080 $
$
247,398 $
$
$
1,225
250
100
2,928
4,153
$
80,330
71,163
73,872
225,366
213,490
165,038
31,134
40,754
33,171
25,467
8,832
27,029
544,915
770,281
$
$
$
$
$
$
$
$
$
$
$
$
$
$
81,937
72,587
75,471
229,995
217,760
168,339
31,757
41,569
33,835
25,976
9,009
27,570
555,813
785,808
$
$
$
$
$
$
$
$
$
$
$
$
$
$
83,576
74,038
76,314
233,927
222,115
171,706
32,392
42,400
34,511
26,496
9,189
28,121
566,930
800,857
871,324 $
891,335 $
894,999
247,398 $
247,398 $
247,398 $
247,398
298,698 $
300,237 $
301,822 $
303,455 $
305,137
388,597 $
500,843 $
569,502 $
587,880 $
589,862
Debt Service
Capital reserves
Total
0.0%
300
0
$
$
$
-
$
51,300 $
$
52,839 $
$
54,424 $
Page 32 / 48
$
56,057 $
57,739
Residual Analysis
2019 - year 5
$
894,999
8.50%
$ 10,529,395
157,941
5,821,129
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
4,550,325
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
29.32%
1
2015
2
2016
3
2017
4
2018
5
2019
388,597
388,597
500,843
500,843
569,502
569,502
587,880
589,862
587,880
4,550,325
5,140,187
(2,494,770)
(2,494,770)
29.32%
Page 33 / 48
Residual Analysis
2018 - year 4
$
891,335
8.50%
$ 10,486,291
157,294
5,821,129
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
4,507,867
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
32.21%
1
2015
2
2016
3
2017
4
2018
388,597
388,597
500,843
500,843
569,502
569,502
587,880
(2,494,770)
(2,494,770)
32.21%
Page 34 / 48
4,507,867
5,095,747
Residual Analysis
2017 - year 3
$
871,324
8.50%
$ 10,250,869
153,763
5,821,129
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
4,275,977
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
35.75%
1
2015
2
2016
388,597
388,597
500,843
500,843
3
2017
4
2018
(2,494,770)
(2,494,770)
35.75%
569,502
4,275,977
4,845,478
Page 35 / 48
-
-
Executive Summary
Liberty Crossing
200 Carmen Avenue
Jacksonville, NC 28540
EXECUTIVE SUMMARY
INVESTMENT SUMMARY
Year Built
1972
Units
286
Total SF
265,136
Average Unit Size
927
$764 | $0.82
$570 | $0.61
Occupancy
95.1%
Liberty Crossing Apartments is a 286-unit community
conveniently located only ½ mile from Jacksonville High School
and in close proximity to the area middle and elementary
schools. The attractive and well-maintained community is
also convenient to Camp Lejuene Marine Corps base and local
retail and employment corridors
• Low density, professionally managed apartment
community with abundant green-space available to
enhance outdoor lifestyle amenities
• Strong cash flow with value-add opportunity through unit
interior renovations
• Convenient location in immediate proximity to area schools
as well as Camp Lejuene Marine Corps Base, area retail
locations and employers
Page 36 / 48
Liberty Crossing
-
Liberty Crossing
Recap
Updated: 4/29/15
Property Summary
12:27 PM
Investment Summary
Liberty Crossing
NC Coast
265,136
$46.54
286
$43,145
$49,625
$70,438
various
Name
Location
Square footage
Units
Price per unit
Year constructed
Capitalization
Purchase price
Closing costs/fees
Escrows
Debt
Mezz
Equity
$
$12,339,513
$747,351
$105,000
$1,001,000
$14,192,864
9,935,005
$
4,257,859
Total Funds
Residual Analysis
$
$9,935,005
5 yr I/O
4.25%
422,238
Assumptions
Notes
Year of Disposition
Initial Investment
Cash flow - Year 1
Cash flow - Year 2
Cash flow - Year 3
Cash flow - Year 4
Cash Flow - Year 5
2019
4,257,859
727,522
966,102
1,099,569
1,139,838
1,193,535
$1,712,341
8.50%
$20,145,193
$292,206
$9,935,005
$0
Cash Proceeds
Debt Financing
$
NOI
Terminal cap rate
Sale price
$14,192,864
Senior Debt
Supplemental
Terms
Rates (Senior)
Senior Debt Service
7.75%
8.50%
Exit Cap (Year 5)
24.08%
17.09%
22.69%
25.82%
26.77%
28.03%
Page 37 / 48
$9,917,982
44.17%
38.59%
35.63%
Liberty Crossing
Sources and Uses
Sources
Amount
9,935,005
Equity investor
4,257,859
Total Sources
Uses
14,192,864
Amount
Financing costs
Escrows
Total Reserves
CAPEX
Legal
Title insurance
Lender legal fees
Engineering
Application fee
Appraisal
Survey
DD Fee/Acq Travel
Acquisition fee
Total Uses
12,339,513
72,433
35,000
35,000
35,000
105,000
1,001,000
25,000
33,333
15,000
114,400
25,000
10,000
50,000
5,000
7,000
20,000
370,185
$
Page 38 / 48
674,918
14,192,864
Liberty Crossing
LIBERTY CROSSING
Time Period
FY2014
286
# of units
Actual/Budget
INCOME
Per Unit
Base rent
Vacancy
Loss to Lease
Concessions
Model Unit
Admin Units
Prepaid Rent
Collections
Bad debt expense
Rental Income
Pest Income
Utilities
Misc. Other Income
Total Other Income
Total Income
Economic occupancy
9,171
$
(804)
$
$
(1,953)
0
(1,539)
1,539
0
0
1,386
1,251
2,637
4,175
$
FY2014
$
$
$
$
$
$
$
$
$
FY2015
286
0.85
$
FY2015
2,622,929 $
$
2,622,929 $
(229,951) $
(558,559) $
$
(18,545) $
2,649,158
68,640
2,717,798
(185,441)
FY2016
286
0.88
$
FY2016
$
$
$
$
(375,000) $
$
(18,916) $
2,675,650
137,280
2,812,930
(187,295)
FY2017
286
0.90
$
FY2017
FY2018
286
0.91
$
FY2018
FY2019
286
0.92
FY2019
$
$
$
$
2,702,406 $
171,600
2,874,006 $
(189,168) $
2,902,746 $
2,931,774
2,902,746 $
(203,192) $
2,931,774
(205,224)
(200,000) $
$
(19,294) $
(100,000) $
$
(19,680) $
(50,000) $
$
(20,074) $
(20,475)
(50,182) $
(857,237) $
1,765,692 $
$
$
232,767 $
210,205 $
442,972 $
2,208,664 $
91.2%
(33,114)
(612,471)
2,105,327
237,422
214,409
451,831
2,557,158
93.0%
$
$
$
$
$
$
$
$
$
(33,446)
(440,035)
2,372,895
242,171
218,697
460,868
2,833,763
93.0%
$
$
$
$
$
$
$
$
$
(33,780)
(342,629)
2,531,378
247,014
223,071
470,085
3,001,463
93.0%
$
$
$
$
$
$
$
$
$
(36,284)
(309,550)
2,593,196
251,954
227,533
479,487
3,072,683
93.0%
$
$
$
$
$
$
$
$
$
(36,647)
(262,347)
2,669,427
256,994
232,083
489,077
3,158,504
93.0%
158,749 $
113,180 $
64,859 $
336,788 $
314,199 $
260,968 $
62,159 $
127,004 $
48,207 $
37,825 $
40,678 $
24,277 $
915,317 $
1,252,105 $
161,924
114,400
102,286
378,610
343,200
266,187
50,050
129,544
49,171
38,582
41,492
24,763
942,988
1,321,598
$
$
$
$
$
$
$
$
$
$
$
$
$
$
165,162
116,688
113,351
395,201
350,064
271,511
51,051
132,135
50,155
39,353
42,321
25,258
961,848
1,357,049
$
$
$
$
$
$
$
$
$
$
$
$
$
$
168,466
119,022
120,059
407,546
357,065
276,941
52,072
134,778
51,158
40,140
43,168
25,763
981,085
1,388,631
$
$
$
$
$
$
$
$
$
$
$
$
$
$
171,835
121,402
122,907
416,145
364,207
282,480
53,113
137,473
52,181
40,943
44,031
26,278
1,000,707
1,416,851
$
$
$
$
$
$
$
$
$
$
$
$
$
$
175,272
123,830
126,340
425,442
371,491
288,130
54,176
140,223
53,224
41,762
44,912
26,804
1,020,721
1,446,163
1,612,832 $
1,655,832 $
1,712,341
OPERATING EXPENSES
Real estate taxes
Insurance
Management fees
Payroll
Utilities
Maintenance
Turnover
Landscaping
Contracts
566
400
358
$
$
$
1,200
931
175
125
150
$
$
$
$
$
$
$
$
$
$
1,324
250
100
2,931
4,255
$
Debt Service
Capital reserves
Total
5,806 $
0.0%
300
0
956,559 $ 1,235,560 $ 1,476,714 $
$
422,238 $
422,238 $
422,238 $
422,238 $
422,238
$
508,038 $
510,612 $
513,263 $
515,994 $
518,806
$
727,522 $
966,102 $
1,099,569 $
1,139,838 $
1,193,535
$
$
$
-
$
85,800 $
$
88,374 $
$
91,025 $
Page 39 / 48
$
93,756 $
96,569
Residual Analysis
2019 - year 5
$ 1,712,341
8.50%
$ 20,145,193
302,178
9,935,005
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
9,908,010
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
35.63%
1
2015
2
2016
727,522
727,522
966,102
966,102
3
2017
4
2018
5
2019
(4,257,859)
(4,257,859)
35.63%
1,099,569
1,099,569
Page 40 / 48
1,139,838
1,193,535
1,139,838
9,908,010
11,101,545
Residual Analysis
2018 - year 4
$ 1,655,832
8.50%
$ 19,480,378
292,206
9,935,005
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
9,253,167
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
38.59%
1
2015
2
2016
727,522
727,522
966,102
966,102
3
2017
4
2018
(4,257,859)
(4,257,859)
38.59%
1,099,569
1,099,569
Page 41 / 48
1,139,838
9,253,167
10,393,006
Residual Analysis
2017 - year 3
$ 1,612,832
8.50%
$ 18,974,497
284,617
9,935,005
-
NOI
Terminal cap rate
Sale price
Cash Proceeds
8,754,875
AUTOMATED IRR
Leveraged Analysis
Equity Invested
Cash Flow
Equity Payback
Reversion
Income
IRR
44.17%
1
2015
2
2016
727,522
727,522
966,102
966,102
3
2017
4
2018
(4,257,859)
(4,257,859)
44.17%
1,099,569
8,754,875
9,854,444
Page 42 / 48
-
-
BEST OF CLASS BUSINESS PARTNERS
Ed Harrington
Samantha Davenport
Property Management:
Manages over 15,000 units, 75 Communities in 36 Cities and 9 States
Over $1 Billion in Assets Under Management
HUDSON CAPITAL
INVESTMENTS
Lenny Blevins
Acquisition and Asset Management
Has Approval Rights on all On-Site personnel
Is intensely involved with Budget creation and monthly Monitoring
Asset Management Team
Is intensely involved with Budget creation and monthly Monitoring
© 2015, CONFIDENTIAL, ALL RIGHTS RESERVED
Acquired properties in the last 24 months
Apartment
Name
Units
Park West
359
$10,350,000
$8,000,000
$2,980,000 October 2011
240
$9,400,00
0
$6,975,000
$3,457,000
Claypond
Commons
188
$8,525,00
0
$6,880,000
$2,015,000 October 2012
Waterside
Greene
314
$26,500,000
$20,600,000
$5,900,000 August 2013
200
$23,500,000
$19,771,000
$5,700,000
November
2013
Jasmine Cove
184
$17,100,000
$13,033,000
$4,905,000
November
2013
Fox Run
120
$9,790,00
0
$7,350,000
Totals
1605
$105,165,000
$82,609,000
Legacy
of
Athens
Palms at
Cinco
Ranch
Acquisition
Price
Current Debt
Total Equity
Purchased on
November
2012
$3,000,000 August 2014
$27,957,000
Address
357 Hillandale
Rd. Greenville,
SC
Return
2014
on 2014
Operating
Operating
Cash
Cash
Flow
Flow
$511,171
17.2
%
$391,550
11.3%
$265,152
13.2
%
$758,836
12.9
%
23600 FM1093
Richmond, TX
$426,514
7.5
%
1600 Jasmine
Cove Simpsonville,
SC 29680
$348,449
7.1
%
148 Wall Street,
Canden, SC 29020
N/A
N/A
$2,701,672
11.72%
100 Ashley
Circle, Athens,
GA
101 Rexford
Court, Myrtle
Beach, SC
741 Woodruff
Road,
Greenville, SC
Operating
Cash
Flow
+
Principal
Reduction
Principal
Reduction
2014
Return on
Return
2015
on
Operating
Budgeted
2015
Cash Flow
Operating
Budgeted
+ Principal
Cash Flow
Operating
Reduction
Cash Flow
$511,171
17.2
%
$482,814
16.2%
$39,06
9
$430,619
12.5
%
$255,145
7.4%
$120,15
2
$385,304
19.1
%
$362,616
18.0%
$758,836
12.9
%
$769,562
13.0%
$142,56
3
$213,152
3.7
%
$213,152
3.7%
$233,87
2
$466,092
9.5
%
$466,092
9.5%
$325,068
10.8
%
$325,068
10.8%
$3,090,242
12.23
%
$2,874,449
10.28%
-
-
N/A
$535,65
6
SOLD properties in the last 24 months
Net
Sales
Proceeds
Total
Distribution
s
Total
Return
(Annualize
d IRR)
$8,250,000
$2,207,657
$2,583,825
23.50%
26
Holding
Period
(Months)
Apartment Name
Units
Acquisition
Price
The Pathways
144
$6,600,000
$5,640,000
$1,700,000
Sold February 2013
Bent Tree
291
$17,800,000 $14,000,000
$3,500,000
Sold September 2013
21500 Park Row
Drive, Katy, TX
$23,600,000
$8,846,500
$9,446,500
47.10%
27
Palms at South Shore
240
$14,750,000 $11,750,000
$5,739,000
Sold August 2014
1201 Enterprise Ave,
Houston, TX
$23,100,000
$9,993,000
$11,450,000
44.20%
27
$54,950,000 $21,047,157 $23,480,325
43.10%
27
Debt
Equity
Notes
Address
2901 Elmside
Drive, Houston,
TX
Sales Price
(Addition $2MM of equity
for capital improvements)
Totals
675
$39,150,000 $31,390,000 $10,939,000
North Carolina Coastal Deal Offer
“You have no time to waste. Aim and fire! Or it will be gone.”
Lenny Blevins, who has been our partner over 20 years, also specify multifamily housing, uncovered this deal recently.
1.
2.
3.
4.
5.
This deal is ideal with both a concession elimination plan as well as a potential upgrade for higher income
We will circulate the opportunity
We have to respect the first come first served priority
We have until June 15th to be non-refundable
We will close in August
This business is like hunting – Sometimes, you go for long stretches and see nothing…
Then suddenly, a superb trophy like jumps out of the bush!
Of course, we can never chase every deal, so we need to pick our targets.
This deal has the following characteristics:
+++ Positive +++
--- Negative ---
+ Excellent pricing
- Tertiary communities
+ No existing finance allowing us to put new competitive debt
- Older properties
+ Stable areas
- Restricted market on the way out
+ Fantastic cash on cash returns - if we get the loans we are getting
for Walterboro
For everyone who is interested: A visit is scheduled on May 4th/5th to get an impression of the objects.
Page 47 / 48
Coastal apartments – WHY is it of interest?
One term - Terrific cash flow!
The story of why - This “why” is the subject of my numerous emails
1. Good acquisition price
2. Excellent management team
3. Proven track record
4. Numerous comparative deal bought and sold
5. The Multifamily space attraction
6. Hard for people to qualify. Hence must rent
7. Desire to be flexible. Ability to move for higher pay
8. Ease of life style No duties no maintenance
9. Proximity to work. Reduce commute
10. Finally, and most importantly terrific financing
 This great leverage is due to our track record
Despite 70% leverage, we have terrific loan coverage.
Nearly 2/1 from our first year operation.
Of course, for our long term hold, we will match with FIXED long term rates.
Page 48 / 48

North Carolina Coastal North Carolina Coastal

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