Apartment syndications can be a lucrative investment strategy, providing opportunities for passive income and wealth building. In this blog post, we will explore the Reserve at Stockbridge, an 88-unit property located in the Atlanta Metropolitan Statistical Area (MSA). We will discuss the sponsorship team, the deal summary, financial projections, and the steps involved in investing in this syndication opportunity.
The Sponsorship Team:
The Reserve at Stockbridge is led by Mark Kenny, the founder of Think Multifamily, a prominent syndication firm in the United States. The team has a strong track record, having acquired and sold numerous properties, raised significant capital, and achieved impressive returns for investors. Their conservative approach to underwriting and focus on reducing risk make them an appealing choice for investors.
The Deal Overview:
The Reserve at Stockbridge is an off-market opportunity, making it a rare find. The property, constructed in 1991, offers attractive features such as spacious two-bedroom units and desirable amenities like a playground, swimming pool, and fitness center. The asset management is overseen by experienced professionals, ensuring the execution of a clear business plan for value-add improvements.
Financial Projections:
The projected cash-on-cash returns on this deal (COC) is 6.7% and quarterly distributions within six to nine months after acquisition. The business plan includes renovations to upgrade units, increase rental income, and enhance the property’s curb appeal. The projections indicate a 1.9x equity multiple over six years, with a potential return on investment of 90% and an estimated internal rate of return (IRR) of 14.7%.
Why Atlanta MSA and Stockbridge:
The Atlanta Metropolitan Statistical Area (MSA) offers a diverse job market, attracting residents and supporting economic growth. With strong demographics and a relatively low cost of living. Stockbridge, located just 20 minutes from downtown Atlanta, is an appealing location. The presence of Fortune 500 companies, excellent healthcare facilities, and family-friendly amenities contribute to the area’s desirability.
Investment Details and Loan Terms:
To participate in the syndication, investors will review and sign the necessary documents, including the private placement memorandum and subscription agreements. The equity split is structured as 80/20 initially, with a transition to 50/50 once investors receive their initial capital contribution and a 12% IRR. The investment package should be reviewed promptly, as the deal is expected to fill up quickly.
Next Steps and Support:
After closing on the property, investors will receive regular financial and operational performance reports, along with quarterly distributions. The sponsor is committed to providing ongoing support and assistance to investors throughout the investment period. The minimum investment for this opportunity is $75,000, and various types of funds, such as cash, IRA funds, solo 401K, and QRP, are accepted.
Investing in apartment syndications, such as the Reserve at Stockbridge, offers a chance to diversify and potentially achieve significant returns. With a trusted sponsorship team, clear business plan, and favorable market conditions, this opportunity presents a solid investment option. By conducting thorough due diligence and following the outlined steps, investors can participate in the multifamily real estate market and build wealth over time.
This deal has $1.25 million of the $7 million raise available for investors to participate. If you are interested in this deal please contact Sarah directly sarah@hyleecapital.com or schedule a 1:1 call.
