252 Unit Premier Apartment homes in One of Atlanta's fastest growing sub markets
Crossings at McDonough
3.6% Interest Locked in
Projected return of majority of Principal in Year 3
The response for our recent Multifamily opportunity in Atlanta was unprecedented. We had a long wait list with many unable to get into the deal. Fresh off the heels of this acquisition, I'm very excited to bring you another opportunity where GW Capital is partnering with Viking Capital this time to acquire a Class B 252 unit Premier Apartment Community in one of the fastest growing sub markets of Atlanta!
Crossings at McDonough
3.62% Interest rate Locked in!
Projected return of majority of Principal in year 3
This high quality asset located in the heart of Atlanta’s most dynamic corridor is in the path of progress, has tremendous value-add potential with over half of the units primed for upgrades.
With the high inflationary environment we are in right now, CASH IS NOT KING!
So if you are looking for a strategic investment in an asset that grows with inflation, in a HOT sub market with Robust Industrial Development, Stellar In-Place Performance and organic rent growth WITH Superior Value add Opportunity (hint, hint - Strong returns for Investors) -
AND if you missed out on the Crossings at Eagle's Landing, then make sure to get your Soft Commit in ASAP.
MARKET HIGHLIGHTS
- The property is prominently situated in the heart of desirable Henry County just outside Atlanta, enjoying abundant retail activity, healthcare services, and is an ever-growing industry hot-bed due to ideal proximity to Hartsfield Jackson International Airport (30 min. drive to the world's busiest airport) and convenient access to interstate highways (right off the I 75 corridor), national train systems, and global ports.
- Recent strategic investments into the submarket has come from numerous blue-chip companies like The Home Depot, Procter & Gamble, and Ryder Logistics.
- Piedmont Henry Hospital, a 215-bed facility located in Eagle’s Landing, is a major demand driver and one of the largest employers in the area.
INVESTMENT HIGHLIGHTS
This project is a 506(c) offering open to Accredited Investors Only.
- Attractive Class B, Well-Constructed, Highly Amenitized Property with Stellar In-Place Performance & Superior Value-Add Opportunity
- Newer 2005 vintage, Larger floor plans, 9' ceilings, well maintained asset acquired from institutional quality seller with little deferred maintenance
- Conservative underwriting with 3-4% rent growth assumption (24% YoY rent growth)
- Considerable organic rent growth in the market with in place rents 10% below market
- Asset is being acquired at a 20% discount per unit compared to recent comparable sales.
- Conservative debt structure with 57% loan-to-value with 3.6% fixed interest rate, unheard of in the current environment
- Last year of 100% bonus depreciation in 2022 - depreciation write-offs projected at 80% of initial investment amount
Class A Limited Partners
Pure Cashflow
Shares are fully subscribed and no longer available.
Based on our conservative underwriting, over a 5 year hold, investor returns are expected to be:
Class B Limited Partners
Equity and Cashflow
- Minimum Investment: $50,000 total
- Preferred Return: 7%
- Equity Multiplier: +1.6x-1.9x
- Internal Rate of Return (IRR): +12-16%
- Average Annualized Return (AAR): +15-19%
- Profit Split Upon Sale: 70/30 (See below for waterfall structure)
Class C Limited Partners
Large Investment - Equity and Cashflow
- Minimum Investment: $1,000,000 total
- Preferred Return: 8%
- Equity Multiplier: 1.8x-2.10x
- Internal Rate of Return (IRR): +13-18%
- Average Annualized Return (AAR): +16-20%
- Profit Split Upon Sale: 80/20 (See below for waterfall structure)
DISTRIBUTION SPECIFICS:
In the event that cash on hand is generated from sale or refinance, this is the order of distribution:
- payment of all loans, unpaid Cumulative preferred returns to investors, return of all Capital Contribution (initial investment) to investors
- Only then will sponsor catch up be paid out (sponsor share of cash flow) This ensures higher investor cash flow upfront as opposed to having a true split of cash flow to sponsor
- Profit upon Sale is then split 70/30 for Class B and 80/20 for Class A till 13% IRR is reached after which additional profits are split 50/50
BUSINESS PLAN
- Familiar Value Add Strategies: We plan to employ tried-and-true value-add strategies on site, including renovating all classic and partially renovated units to the elite standard (67% units are in need of an upgrade) - all strategies the lead sponsor has executed with success at other assets. The market has proven a demand for higher quality interiors, comps indicate market surety of these rates and the previous owner has proven this earning $219 - $600 in premiums for renovated units.
- Opportunity to Quickly Grow Rents: Current rents are 10% below market. This coupled with strong organic rent growth in this sub market further solidifies the plan.
- Efficient operations: leveraging our best in class third-party management team.
Crossings at McDonough Soft Commit Form
* This is a Rule 506(c) offering for Accredited Investors Only
Timeline
Crossings at McDonough
- Investor PPM currently ready for review - Class A is fully committed at this time.
- Deadline for funding: January 14
- Expected Close: January 28
With the current momentum in Southern Atlanta, we couldn’t be more excited about presenting these opportunities 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 how this asset would fit into your portfolio and goals, feel free to reach out to schedule a call:
Book a Call with Param
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