After an extensive search spanning over 8 months, we are thrilled to present Bridgepoint Apartments - a meticulously curated investment opportunity that meets all of our stringent criteria.
We are excited to offer our investors access to this exceptional property:
Built in 1986, Bridgepoint is situated on over 10 acres of land, totaling 200 units and 420 parking spaces and is currently 93% occupied.
The community amenities include private balconies in each unit, a swimming pool, picnic areas, a dog park, fitness center and a sports court.
Discover The 4 Competitive Advantages Of This Opportunity:
1) 5 year fixed interest rate of 3.57%, with a loan to cost of 56%
2) Value add business plan to inject $4m and renovate all 200 units
3) 50% property tax exemption saving $278k in year 1
4) Forced sale providing us with roughly a $5m, or 16% discount to 2023 pricing
HIGHLIGHTS:
3.57% Fixed Interest Rate Loan:
- Our operating partners are assuming a positively leveraged, fixed interest rate at 3.57%, low Loan To Cost of 56%, with 5 years remaining.
- A very attractive data point that we rarely see on deals is the Debt Service Coverage Ratio (DSCR) of 1.95x in year 1. This is one of our favorite attributes of this investment, greatly reducing risk. The projected year 1 property cash flow, can almost pay for the debt 2 times over.
Value-add Business Plan:
- The business plan allocates $3,956,593 towards a comprehensive value-add plan at Bridgepoint, leveraging our operating partners built out, in-house interior renovation platform to renovate all 200 units at the property.
- These upgrades are projected to produce an average rental premium of $220 to $270 across the units, approximately a 20% rental increase.
50% Property Tax Exemption:
- In exchange for keeping 50% of the units at the property income and rent restricted, the property will receive a 50% property tax abatement, resulting in a savings of $278k in real estate property taxes annually.
- When estimating the value created by the net savings of $278k, at a 5.75% cap rate, this would equate to $4.8m of added value:
Forced Sale:
- In 2023, the seller received an offer from a known buyer at $31M, which was rejected. Now the seller is forced to sell the property due to their fund reaching the end of its 5 year term.
- Our operating partners are under contract to purchase the property for $25.9M, roughly a $5m, or 16% discount to peak pricing.
Offering
We will have 3 Class shares available for investors, Class C have a $50,000 minimum investment and Class B have a $250,000 minimum and Class A have a $500,000 minimum.
Please contact us for special terms on investments above $1,000,000:
Watch An Overview + Live Q&A
Disclaimer: All investments involve risk and you should consult your attorney, financial advisor or accountant to understand the risks prior to considering an investment. This message is not an offer to sell or the solicitation of an offer to buy any security, which only can be made through offering documents which contain details about the risks associated with an investment. Any investment details contained herein are believed to be reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
