There are four investment classes to suit the means and goals of individual investors, with correspondingly different returns:
Class A Shares ($50K+): 10% preferred return, no upside
Class B Shares ($50K-$75K): 6% preferred return, 70/30 split
Class C Shares ($80K-$145K): 7% preferred return, 70/30 split
Class D Shares ($150K+): 8% preferred return, 70/30 split
Cost segregation study will be done to provide bonus depreciation to offset income from this investment.
Historically, on our deals, tax deductions range between 70-87% of the investment amount.
1.92X - 1.94X.
Investor Equity Multiple
15.2% - 15.5%.
Investor Internal Rate of Return
6.6% - 6.7%
Average Cash-on-Cash %
1. Why this submarket & property?
~$73K average income in a 3-mile radius. Decatur is gentrifying quickly to the east, and this location still inside I-285 is trading at a fraction of similar properties only a few miles to the west closer to Downtown Decatur.
Submarket effective rent has increased 72% since 2015. Vacancy in the submarket has dropped as low as 4.3% in Q4 of 2021.
The property has access to major East Atlanta job drivers along with the I-20 East industrial corridor which holds 17.6MM SF of industrial space and continues to see major institutional commitments such as Rivian and Facebook.
2. What is the business plan to drive returns?
We will upgrade 50-60% of the units, enhance the amenity set, and implement the “Boardwalk Way” — our signature style of operation that elevates the resident experience and drives investor returns.
Our unique asset management playbook creates a community-like feeling among residents. The continued result in this metro and others has been higher renewal rates, resident referrals, and reduced turnover/R&M costs… for a direct, positive impact on net operating income.
3. Why are there multiple investment tiers?
Given the high amount of interest in our projects, we reward recurring investors who typically invest larger amounts by providing a wider menu of options to help them get higher returns.
This struture also allows first-time investors to “test the relationship” at a lower minimum amount ($50K) if they wish.
And finally, for those seeking max cash flow, our Class A shares payout 10% in exchange for no participation in the final equity split.