projected returns

Preferred Return

8.0%

LP/GP Split

85/15

IRR

15.5%

Equity Multiple

2.01x

Avg. Cash Flow

4.0%

Annualized Returns

20.2%

Why we love this deal

Rise Valley Heights is 194 units, built in 1986. The property is a B+ class asset located in a B+ submarket of Phoenix, Arizona. It offers immense upside with the opportunity to renovate 100% of the classic units and add washers/dryers to 100% of the units for an additional $50 rental increase per unit with a purchase price at a 40% discount from what it would have sold for during peak pricing 36-48 months ago.

Sourced completely Off-Market from long-term Absentee Owner

40%+ discount from what it would have sold for 36-48 months ago

Significant upside to renovate 100% of units and add Washers/Dryers to 100% of units

Extremely low basis of $174K/unit, rare for 100% 2 bedrooms at 1,100 SF/unit

Highest capitalization rate of any deal we’ve purchased in over 3+ years

100% Bonus depreciation

our track record

63 Acquisitions
11 Exits
$2.5B+ Acquisition Value
11,769 Units
NEVER Lost an investor dollar

Purchase Price

$33,800,000

Number of Units

194

Vintage

1986

Rentable Square Feet

213,400

offering summary

Purchase Price

$33,800,000

Equity Raise

$17,137,846

Occupancy

87%

Cap Rate (T3/ PF Exp)

5.85%

Projected Exit Cap Rate

4.70%

Hold Period

2-5 Years

minimum investment

$100,000

financial summary

equity member class with preferred cash on cash return

8.0% preferred cash on cash return; 85/15 LP/GP split on sale

sources

Debt – Funded at closing $23,660,000
Debt – Future funding (funded when we submit CapEx draws) $4,585,587
Equity $17,137,846

total

$45,383,433

uses

Purchase Price $33,800,000
CapEx $4,585,587
Closing Costs (legal fees, interest rate cap, third party reports, etc.) $1,956,071
Acquisition Fee $1,690,000
Lender Origination Fees $564,912
Prepaid Expenses (Insurance and Taxes) $150,709
Prepaid Interest $93,654
Reserves (Held at property's bank account) $2,542,500

total

$45,383,433