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There are four investment classes to suit the means and goals of individual investors, with correspondingly different returns:
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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.
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Investor Equity Multiple
15.2% - 15.5%.
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Investor Internal Rate of Return
6.6% - 6.7%
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Average Cash-on-Cash %
FAQ
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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.
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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.
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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.
