PINES ON VINEVILLE
This deal is 100% subscribed and no longer available for investment.
A MULTIFAMILY INVESTMENT OPPORTUNITY
CONFIDENTIAL INVESTMENT SUMMARY
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DISCLAIMER
The following information is an investment summary provided to prospective investors and others. This information is not an offering to sell a security or a solicitation to sell a security. At the request of a recipient, the Company will provide a private placement memorandum, subscription agreement and the Limited Liability Company Operating Agreement. The Managing Member in no way guarantees the projections contained herein. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managing Member’s control. This investment is illiquid and only those persons that are able and willing to risk their entire investment should participate. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you. (Español)
To make a Soft Commitment, click on your sponsor's logo below:
01
THE TEAM
Ten15 Capital
02
THE STRATEGY
Investment Opportunity
We are excited to announce that Ten15 Capital is in partnership again with American Commodity Investment Group! Together, we welcome partnership with 1Ocean Capital, ETEMA Capital and Integral Equity Group. We are pleased to present the opportunity to participate in the following property:
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Pines on Vineville, a 40-unit, value-add apartment complex in Macon, Georgia
We are investing our family's capital in this opportunity.
We are offering an opportunity to partner with us on this great community, a Class C, garden-style apartment community in a thriving B-Class neighborhood. The opportunity of acquiring this asset will allow qualified investors to take advantage of Depreciation, Refinance to pull profits early, and strong cash flow.
With the uncertain times, we are excited to provide our partners the opportunity to hedge against inflation, a looming recession and protect their wealth in an income-producing hard asset.
This is a 506(b) offering, available to accredited investors AND 35 sophisticated (approved non-accredited) investors.
The Property
Recently having undergone a full renovation in 2015, we are excited to take over a mismanaged asset with solid bones. The renovations in 2015 include: roof, AC units, unit interiors, appliances and a privacy gate.
The property is situated in the Downtown Macon district, an easy drive to Mercer University, regional airport, medical centers, major retail and the Restaurant District.
Part of our value-add plan includes: updating unit interiors with vinyl plank flooring, complete the HVAC updates, updating the privacy gate, improving curb appeal with fresh landscaping, exterior paint and parking lot restoration.
The current management does not have an aggressive marketing campaign and are not maximizing the property's potential. For example, they're not even updated on Apartments.com. With our proven marketing strategies, we will see increase in traffic within the first 3-months of operation.
Per our market analysis, we are expecting to achieve a $150+ rent increase per unit.
03
OVERVIEW
THE PLAN
Years 1
Renovate & Reposition
Year 2:
Stabilize & Refinance
Years 3-5:
Enjoy Cash Flow
Month 7:
Distributions Begin
*Any accrued preferred payments will be caught up on the refi
timelines
Legal Docs Due:
August 5, 2022
Funds Due:
August 12, 2022
Closing Date:
August 23, 2022
Total Raise:
$1.75M
projected returns
$50k Minimum Investments
(Lesser investments will be considered on a case by case basis)($249k max)
1.98x Equity Multiple
18-21% IRR
8% Preferred Return
Cash Out Refi Year 2
65% Capital Return (Projected)
CAPEX PLAN
$400k Renovation Budget
Value Add
$220k - Unit Interiors
$35k - Privacy Gate
$5k - Common Areas
$30k - Laundry Facility
$11k - Signage Update
Deferred Maintenance
$16k - Parking Restoration
$25k - Exterior Painting
$12k - Tree Trimming
$10k - Fence Repairs
10% Contingency
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04
THE THESIS
What We Like About Pines on Vineville
Top 5 Reasons
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Solid unit mix of 1 and 2 bedrooms
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Excellent location
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Value-add reposition of $150 per unit
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Management play, our strength
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Strong South Georgia submarket
Below Market Rents
The current average in-place rent across floor plans is more than $150 below market for similar units. With updated apartments, we will achieve rent premiums.
Property & Operations
The property amenities and curb appeal could use improvements. The property is in an ideal location and has the ability to attract a higher quality tenant profile. With our proven Business Plan, we will add new landscaping elements, security gate & camera, new property management and overall freshen up of the property.
Renovate Interiors
There is an opportunity to improve the units with vinyl plank floors, modern paint scheme and updated lighting. We will replace the remaining HVAC units and kitchen appliances.
Positive Market Fundamentals
Macon consistently indicates positive market indicators such as 95% occupancy. Thriving off of a host of employers in medical, educational, and manufacturing industries, Macon has emerged as the nation's #1 market for Millennial and Gen-Z renters.
05
THE FINANCIALS
UNIT MIX
40 Units
32 x 1 Bed/ 1 Bath
8 x 2 Bed/ 1 Bath
2-Story Walk-Up Building
Renovated in 2015
PURCHASE
Purchase Price:
$3.025M
Down Payment:
$907.5k
Cash Reserves:
$300k
mortgage
Bridge Debt Year 1-2:
Transition and Stabilization
Refinance End of Year 2:
6% Interest Rate
10-Year Term
30-Year Amortization
Interest Only 2 Years
FINANCIALS
CAP Rate (Entry):
5.75%
Projected Rent Growth:
23%
Year 1 Underwriting Vacancy:
5%
Projected Partner Returns
Capital Stack
Splits (Excess Cash Flow & Equity Share On Sale)
Partner Returns
8% Preferred Based On $100k Investment
06
THE WEBINAR
Investment Summary Webinar Presentation
Ten15 Capital, American Commodity Investment Group, and partners are excited to present a great investment opportunity for:
Pines on Vineville: 40 apartment units, Class C property in Class B location, Macon, GA.
Webinar replay below!
Frequently Asked Questions (FAQ)
How and when will distributions be made? We will pay distributions quarterly, in the month following the end of the quarter. Payments will only be made via ACH direct deposit to the bank account you provide to us upon committing your investment. Distributions start at the end of the 2nd quarter of ownership (month 7) to allow for the execution of the Business Plan.
When is the first distribution? The preferred returns will not start being distributed until month 7 of ownership, paid on the 20th of that month and will follow quarterly. This gives management an opportunity to settle in, assess the operations, ensure the property is cash flowing, and pay investors with the operating cash flow.
Is the General Partnership team investing any of their own money? Yes. The GP team is investing a minimum of 10% of the required raise of their own funds into this deal.
Will you be doing a cost segregation study that includes bonus depreciation? Yes, we will be performing a cost segregation study to maximize the depreciation and bonus depreciation for the 2022 tax year. The projected tax dollar benefits to be captured looks to be an estimated 60-65% of your total investment amount. For example, if you invested $100,000, you could potentially have $60,000 of passive paper losses on your 2022 K-1 statement. Consult your CPA on how this could affect your taxes.
Can I invest less than $50,000? At this point in time, investment amounts less than $50,000 will be considered on a case-by-case basis.