New Investment Opportunity
Greenville, SC Portfolio - 281 Units
Price: $35,480,000
I am pleased to announce that GenerationalwealthMD is partnering with RSN Property Group again to acquire a two-pack portfolio investment opportunity in Greenville, SC.
The Greenville Portfolio consists of a 180-unit property, The Park at Bonito, and a 101-unit property, The Park at Calabria. These assets are directly across the street from one another located in a thriving B+ submarket less than 10 mins from Downtown Greenville. Both assets offer immense operational upside with the opportunity to renovate 95% of classic interiors, install washers/dryers, add tech packages, rebrand and modernize amenities.
INVESTMENT WEBINAR REPLAY
MARKET HIGHLIGHTS
Greenville has continued to see major growth as more people move to the area given its affordability compared to its two biggest neighbors; Charlotte and Atlanta (both located within 2 hours drive).
- Home Price Growth: Median house prices in the submarket have increased over 15% within the past 12 months, and over 63% over the past 5 years.
- Rent Growth: Within the past 12 months rents have exploded over 15% on average. Organic rent growth is projected to be over 20% over the next 4 years (2022-2026).
- Population Growth: Greenville county is booming. It's expected to add 220,000 residents by 2040, representing a 40% increase in less than 20 years.
- Economic Growth: The GDP for the Greenville-Anderson-Mauldin, SC MSA is nearly $47.6 billion, according to the Federal Reserve Bank of St. Louis, and has grown by more than 53% over the past decade.
- Real Estate Market Accolades: Multihousingnews.com named it the #1 emerging market in the country. Realtor.com named it one of the top 10 housing markets for 2022. Realtor.com's list includes ALL markets, not just emerging markets!
- Notable Headquarters and Major Employers: BMW, Michelin North America, Fluor Corporation, Duke Energy, UPS, Lockheed Martin, Alcoa, GA Pacific, Caterpillar, BiLo, Owens Corning, and Kemet Industries. The region includes the global HQ for GE Energy’s Engineering Division and the world's largest heavy-duty gas turbine manufacturing facility.
INVESTMENT HIGHLIGHTS
This project is a 506(c) offering open to Accredited Investors Only. We are accepting 1031 Exchange Investors who have over $750k (per investor) to exchange
- Conservative debt structure of 65% loan-to-value, with 5-year fixed, interest-only debt at 5.25%
- Conservative underwriting of 3% annual rent growth
- Last year of 100% bonus depreciation in 2022 - depreciation write-offs projected at 40-47% of initial investment amount
We are offering a three-tiered equity structure to allow investors to choose an investment class aligned with their investment goals. Based on our conservative underwriting, over a 3-5 year hold, investor returns are expected to be:
Class A Limited Partners: Pure Cashflow
- Minimum Investment: $75,000 total
- Fixed Return: 11% (7% paid quarterly then 4% catch up upon sale)
- Average Annual Return (AAR): 11%
- Equity Multiplier: 1.55x
- Internal Rate of Return (IRR): 10.6%
- Average Cash Flow from Operations: 7% (then 4% catch up upon sale)
- Profit Split Upon Sale: Cashflow only. No payout upon sale
- Class A limited to a maximum 30% of total equity stack
Class B Limited Partners: Equity and Cashflow
- Minimum Investment: $50,000 total
- Preferred Return: 7%
- Average Annual Return (AAR): 20.0%
- Equity Multiplier: +2.00x
- Internal Rate of Return (IRR): +16.2%
- Average Cash Flow from Operations: +6.8%
- Profit Split Upon Sale: 70%/30%
Class C Limited Partners: Large Investment - Equity and Cashflow
- Minimum Investment: $500,000 total
- Preferred Return: 8%
- Average Annual Return (AAR): 22.0%
- Equity Multiplier: 2.10x
- Internal Rate of Return (IRR): +17.4%
- Average Cash Flow from Operations: +6.8%
- Profit Split Upon Sale: 80%/20%
BUSINESS PLAN
Familiar Value Add Strategies: We plan to employ tried-and-true value-add strategies on site, including renovating all classic units (95% of the unit mix) to our platinum interior program, adding our signature technology package (wifi, keyless door hardware and smart thermostats), rebranding the assets, freshening up existing amenities and adding a new community “people park”-- all strategies the lead sponsor has executed with success at other assets.
Opportunity to Quickly Grow Rents: Both of these Class B assets are located directly adjacent to several other properties, which receive $250-400+/month rent premiums. In addition, we’ve seen very strong demand for renovated Class B product within the submarket confirming our business plan. We can improve the overall property, increase rents, and offer residents a lower cost offering relative to the competition.
Operational Efficiency: Given the close proximity, both assets will be operated as one, helping us save on personnel costs.
Desirable Location: Both Assets Centrally Located: Both assets are located in the desirable “Eastside” submarket with easy access to Downtown Greenville, the Airport and the world famous BMW North America Manufacturing Plant.
Sponsor Investment: Like in other opportunities I have brought to the community, I am investing my own money in this deal. Lead sponsor Reed Goossens is investing over $1mm of personal money into this deal.
Greenville SC 281-Unit Multifamily Portfolio
PPMs will be offered in the order in which Soft Commitment is received
* This is a Rule 506(c) offering for Accredited Investors Only
Timeline
- Investor PPM will be ready for Review: Week of August 1st
- PPM's Signed: August 19th
- Funds Received: August 26th
- Expected Close: Week of September 5th
With the current momentum in Greenville, we couldn’t be more excited about presenting this opportunity to you. As availability is limited we expect this to fill deal up very quickly. Commitments will be taken on a first-come, first-served basis - so make sure to get your soft commitments in ASAP.
*DEFINITION OF ACCREDITED INVESTOR
You qualify as an Accredited Investor if you meet any of the following criteria:
a) You earn over $200,000 in annual income,
b) You, together with your spouse earn over $300,000 in joint annual income,
c) You have a net worth, exceeding $1,000,000 (excluding the value of my primary residence), individually or together with my spouse.
GOT QUESTIONS?
If you have any questions please feel free to message us at [email protected] or if would like to talk to us about anything fund related feel free to reach out to schedule a call:
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