Deal Of The Week

228 Units: Deal of the Week 01-14-21

Eric Wilson
January 15, 2021

228 Units

Highlights:  This project is a 228-unit apartment community located on a 3.5-acre urban tract in the Sarasota-Bradenton MSA.  The community features an appealing mix of one-, two-, and three-bedroom units averaging 1000 square feet. Each unit has washer/dryer connections, large windows, 10 foot ceilings luxury finishes and a private balcony. Additionally, residents benefit in its proximity to Sarasota’s largest employers, highly rated schools, and a variety of preferred retailers.  Siesta Key Beach, ranked the number US beach for 2020 is located less than 20 minutes away.  These factors combine to make this area on of the most desirable residential areas in the Gulf Coast region.The property was built in 2019.  Because we are in negotiations and operating under an NDA, we cannot discuss why the property is available.  That said, the current ownership is highly motivated, and we are positioned to acquire it for very favorable terms.

Repositioning:  Because we are currently under negation all the figures quoted are estimated.  The project is targeted to be acquired for $42,800,000. A review of the financials show that the property is currently being operated a 60% expense to income ratio.  This is predominantly due to the excessive salary and management compensation that is currently in place.  The expedient installation of our professional management team will allow us to bring our expense ratio well below 40% within year one dramatically improving NOI enhancing the valuation and improving cashflow.

Targeted Returns

Cash On Cash: Year 1  10.75% to Year 5 16.59%

IRR:   29.84%

Equity Multiple: 2.8x

These securities are being offered under an exemption provided by SEC Regulation D Rule 506(c).  Only accredited investors who meet the SEC Regulation D 501 “accredited investor” accreditation standards and who provide suitable verification of accredited status may invest into this Offering. Any historical performance data represents past performance.  Past performance does not guarantee future results. Current performance may be different than the performance data presented. The Company is not required by law to follow any standard methodology when calculating and representing performance data. The performance of the Company may not be directly comparable to the performance of other private or registered funds or companies. The securities are being offered in reliance on an exemption from the registration requirements, and therefore are not required to comply with certain specific disclosure requirements. The Securities and Exchange Commission has not passed upon the merits of or approved the securities, the terms of the offering, or the accuracy of the materials.

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