Colony Apartments

Opportunity description

We are pleased to offer accredited investors the opportunity to invest in the redevelopment of The Colony Apartments! Located in Shaker Heights Ohio, this 153-unit  Class-C apartment community sits on 5.19 acres offering 77 one-bedroom and 76 two-bedroom floor plans ranging in size from 575 to 750 sq. ft and is currently 86.27% occupied. Located on Van Aken Boulevard, which runs east of Cleveland, The Colony sits at a prime location between immediately accessible attractions from Shaker Heights and the employment pool from Cleveland.

Smartland is seeking up to $2,500,000 in equity investments from accredited investors In exchange, participating investors in Class A, will receive a 9% preferred return with an 80% stake in the equity of the project until they receive an IRR of 16%, at that point investors equity will change to 20% and remain indefinitely. Participating investors in Class B will receive a 7% preferred return with an 80% stake in the equity of the project until they receive an IRR of 12.5%, at that point investors’ equity will change to 20% and remain indefinitely. The estimated hold for this project is up to 5-years. On or around year 5 Smartland will either proceed with the sale of the asset or will refinance it into a long-term portfolio.

Smartland has entered into an agreement to purchase The Colony Apartments for $7,000,000 with additional capital expenditures of $2,919,393.

Smartland has secured a debt commitment from a local Ohio bank at 80% LTC. The 20% down payment will be equity from accredited investors and/or Smartland Entities.

Monitoring

Verivest 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. Verivest usually takes about 5-15 days to process the information and submit the report.