$100M Value-Add Fund

Status: Open
  • INCEPTION DATE 03/01/2021
  • PROPERTY TYPE Multifamily
  • STRATEGY CRE Acquisition
  • INVESTMENT TYPE Growth & Income
  • RISK PROFILE Value Add
  • PROGRAM TYPE Close-Ended Fund

Opportunity description

Fund Economics

  • Target Fund Size: $100,000,000
  • Assets Purchased: $300,000,000
  • Projected Gain: $112,000,000

Projected Returns

  • Class A Investors: 8% Preferred Return
  • Minimum Investment: $250,000
  • 80/20 Equity Split until 15% Net IRR
  • 70/30 Equity Split after 15% IRR achieved
  • Class B Investors: 10% Preferred Return
  • Minimum Investment: $1,000,000
  • 80/20 Equity Split
  • Investor Projected Multiple: 2x
  • Properties to be Purchased: 3,000+ Doors

Smartland has identified the Harbour Luxury Apartments1 for an off-market acquisition, as asset #1 in the fund.

Harbour Luxury Apartments1 is a 16 unit vintage multifamily apartment community located in a premium area in Miami Beach, Florida.

Constructed in 1950, the Property is a mismanaged apartment community that provides significant upside through interior unit renovations, smart technology enhancements, enhancing the common areas, and improving operations.

Through our comprehensive value-add turnaround program, projected capital improvements of $18,915 per unit in interiors and $14,395 per unit in exteriors to increase current average rents across the property by $340 per unit per month.

This comprehensive value-add turnaround will allow us to exit the property at a $280,000 per unit price tag, which is over 23.7% below average sales comparables. This will result in a projected 1.5x equity multiple and 48% internal rate of return based on a 1-year hold.


Smartland has identified, 800 Place Apartments for an off-market acquisition as asset #2 in the fund.

800 Place Apartments is approximately an 800 unit vintage multifamily apartment community well-located in Cleveland, Ohio.

Constructed in 1969, the Property is a mismanaged apartment community that provides significant upside through interior unit renovations, smart technology enhancements, new pet park, bike stations, electric car charging stations, enhancing the common areas, and improving operations.

Through our comprehensive value-add and operational turnaround program, projected capital improvements of $10,475 per unit in interiors and $8,650 per unit in exteriors to increase current average rents across the property by $178 per unit per month which is conservatively underwritten at 16% below C Class comparable rents and hold the asset for 5 years.

This will result in a projected 2x equity multiple, 9.2% average cash on cash return, and 17% internal rate of return.

As a hands-on vertically integrated operator, 800 Place Apartments1 fits within our exact criteria of heavy lifts overlooked by inexperienced operators with the opportunity to increase the property value significantly by improving the tenant base, attracting higher rents, and creating a better community in a growing market.

We have a track record of repositioning vintage multifamily properties and delivering superior returns.

Our strategy is differentiated by focusing on vintage multifamily repositions to gorgeous, updated C/B class apartments.

We are able to minimize risk by acquiring at attractive prices and drive significant rent increase through operational efficiencies.

100M Value-Add Fund

 


Key deal points

  • Multi-Family Communities
  • Value-Add and Nonperforming Notes
  • Capitalize on others’ mediocracy
  • Focus on market expansion
  • Convert vintage multifamily properties into gorgeous B’s (little to no comps with B’s whichincreases the value between C & A properties)
  • Unit and Community Amenities-Focused

Monitoring

Fund Administrator monitoring occurs on a quarterly and annual basis. Sponsors will inform us before the quarter or year begins when they will deliver their monitoring report. Fund Administrator usually takes about 5 days to process the information and submit the report.


Quarterly checks

Next report due 07/31/2021; Forecasted availability 08/05/2021

0 anomolies

04/01/2021 - 06/30/2021

Forecasted availability 08/05/2021

Verified
Annual Checks
0 anomolies

01/31/2021 - 12/31/2021

K-1 Delivery Date

Estimated 03/15/2022

Verified

Audit Report Date

Estimated 03/25/2022

Verified

 


Service providers

The service providers listed below have been provided by Smartland and Verivest has verified that they are in use on $100M Value-Add Fund.

Verivest LLC
  • Monitoring Provider
  • Portland, OR
Verivest LLC
  • Financial Statement Preparer
  • Portland, OR
Verivest LLC
  • Investor Servicer
  • Portland, OR
Verivest LLC
  • Tax Preparer
  • Portland, OR
Smartland LLC
  • Property Manager
  • Cleveland, OH