Class A 188-unit property asset located in South Bend, Indiana, #1 in the nation for year-over-year rent growth
Park 33 Core-Plus Asset
Acquired in September 2023
3.06% Interest Rate | >95% occupancy
FULLY FUNDED!
WHY WE LOVE THIS DEAL?
As you know with the low transaction volume, lending constraints and high interest rates it has been challenging to find deals that meet our very stringent criteria for the current economic environment that
- Cash flow Day 1 with very conservative assumptions of rent growth and occupancy for the next few years
- have safer debt - with low interest rates (we have been looking at loan assumptions)
- and still give our investors highest risk-adjusted returns in the current economic environment
Well the wait is over...
PARK 33 is a 188-unit Core- Plus Value-Add asset located in the heart of South Bend MSA.
MARKET HIGHLIGHTS:
- Nation's #1 area for year-over-year rent growth
- PARK 33 is superbly located near three major metropolises, Chicago, Toledo, and Indianapolis.
- Excellent access to numerous and diverse employers nearby including north central Indiana’s largest job clusters and the top cities in the nation for job growth. South Bend is #2 in the nation for Employment Concentration in sectors such as private education, pharmaceutics, agriculture bio-sciences, manufacturing, and medical devices.
DEAL HIGHLIGHTS:
- Stellar in-place performance (95% Occupancy) creates an incredible opportunity for investors.
- Tremendous value-add potential with a two-phase strategy we will implement.
- We plan to assume the remaining 7-year, $18.3M Freddie Mac loan at a 3.08% interest rate, and I/O period through May 2025. This low rate is more attractive than new debt and offers positive leverage and strong cash flow.
We strategically chose this area because even during these tough economic times another asset of our partners in South Bend has increased in value by over $10M in two years. This nearby property offers an operational economy of scale and increased exit liquidity; including an opportunity to exit to an institutional investor.
South Bend, Indiana market is poised for further growth, and we're excited to be at the forefront of it.
WE ANTICIPATE THIS DEAL TO FILL UP VERY QUICKLY GIVEN THE SMALL RAISE AMOUNT.
Please consider getting your soft commitments in ASAP.
CATALYST FOR INDIANA GROWTH
*For Accredited Investors*
Three-Tiered Equity Structure
Allows Investors to Match Investment Goals
A three-tiered return structure gives investors options when placing their equity. Investors have the ability to invest in either tiers of equity Class A, Class B, Reserve Class or a combination of Class A and Class B. Diversifying in both A and B classes allows for a risk adjusted, blended returns.
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 15% IRR is reached after which additional profits are split 50/50
PARK 33
Tour the Property
PARK 33 IN SOUTHBEND, INDIANA
Investment Summary
PARK 33 Southbend, Indiana - SOFT COMMIT
* This is a Rule 506(c) offering for Accredited Investors Only
Timeline
CLASS A IS FULLY FUNDED & CLOSED!
With the current momentum in this deal, small raise amount and overall lack of transaction volume in the Multifamily Real estate space - we anticipate this raise to close quickly.
Commitments will be taken on a first-come, first-served basis - so make sure to get your soft commitments in ASAP and Sign the PPM and fund as quickly as possible.
Since this is a loan assumption, the closing process may be longer than usual - TARGET CLOSE date is in August 2023
*DEFINITION OF ACCREDITED INVESTOR (PLACE HOLDER)
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 primary residence) individually or together with 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
