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Renovating, upgrading and selling an income-generating multi-family property comprised of 312 units in Irving, Texas.
4111 Polaris Drive Irving, Texas, USA
|Sources of finance||%||Ownership||Amount|
|iintoo Equity||$ 1,950,000|
|iintoo Debt||$ 1,050,000|
|iintoo TIC Investor (Direct Investors)||$ 3,000,000|
|Sponsor and other investors||$ 5,435,274|
|Property owner mortgage||$ 19,290,393|
Nestled on an impressively landscaped greenbelt, Bridgeport apartments' living experience is one of tranquility and quality, with beautiful landscaping of its grounds and plush amenities, including sunrooms and resort-style pool areas.
Living unit mix:
The asset is located on 4111 Polaris Dr., Irving, TX.
Irving is considered part of the Dallas-Fort Worth metroplex.
The property is adjacent to DFW International Airport, the third busiest airport in the world.
Dallas-Fort Worth is consistently ranked as one of the top regions in the nation for doing business. Major contributing factors are its low cost of living, business-friendly environment, a strong base of well-educated and skilled employees, and unmatched access to both U.S. and world markets through its transportation network.
The asset is located in the city of Irving off Polaris Drive, adjacent to State Highway 161, making it easily accessible to nearly every major thoroughfare and commercial center in the area including Las Colinas Business District, Downtown Dallas, and Uptown Dallas. Within ten minutes, a tenant can get to CentrePort Business Park, Great Southwest Industrial Park, Irving Mall, the Las Colinas retail and entertainment district, and Baylor Scott and White's Irving campus.
*Select Units Only
The transportation options enable residents to take advantage of the central location between Dallas and Fort Worth.
Situated adjacent to SH-161, the property has access to DFW's major transportation thoroughfares including, SH-183, SH-360, SH-121, and SH-114.
The Arlington Entertainment District, home to the $1.1 billion AT&T Stadium, Globe Life Park, Six Flags Over Texas, Irving Convention Center at Las Colinas, Irving Mall, The Four Seasons Resort and Club Dallas at Las Colinas and Hurricane Harbor, is the largest entertainment district in North Texas.
From a business/employment point of view, Dallas/Fort Worth has a lot to offer, serving as home-base for major conglomerate companies, such as Walmart, Bank of America, General Motors Assembly Plant, The Great Southwest Industrial Park, CentrePort Business Park, AMR Corporation/American Airlines Headquarters, Baylor Scott & White Medical Center, JPMorganChase, Texas Instruments and more.
Many future developments are planned for the area, including Hidden Ridge Development, Irving Music Factory, and Water Street.
Tom Vukota, BSc, CFA, CMA // Founder & Chief Investment Officer
Mr. Vukota has 20 years of experience in the investment industry, possessing diverse real estate investment and asset management experience. Previously he was a managing director at Manulife Finalial’s alternative asset management division, where he spent 10 years and was also head of Real Estate Private Equity. Tom holds a Bachelor of Science in Finance from the University of Vermont, is a Certified Management Accountant, and Chartered Financial Analyst. In addition, he is a member of the Institute of Real Estate Management, the National Apartment Association, the Commercial Real Estate Development Association, and the Urban Land Institute.
Paul E. Slye // President, Vukota Real Estate
Mr. Slye has 30 years of experience in the real estate industry. Paul was previously Co-Founder and Managing Member of Brentwood Capital Partners, a full-service real estate investment, development and management company investing across a broad spectrum of asset classes and markets.
|Expertise||Vukota Capital Management has a solid track record of acquiring and managing multi-family, residential, and opportunistic real estate transactions such as office and industrial. Their team consists of 30 professionals, of which over 25 are involved in property management. The firm focuses exclusively on alternative investments in both public and private markets.|
|SQF track record||300,000+ square feet of commercial real estate assets.|
|Unit track record||3000 Units|
|Asset Value track record||over $400 million in assets under management|
Texas and the Dallas-Fort Worth metroplex are national leaders in population and employment growth and consistently beat the national unemployment rate. The area’s economic expansion is projected to continue into the future; the Dallas/Fort Worth market has a positive job growth forecast and a booming population. As the nation continues to improve economically, North Texas capitalizes on key industries and major employers through corporate relocations and local job growth.
The Dallas-Fort Worth Metropolitan Statistical Area (MSA) is comprised of two Metropolitan Divisions; Dallas on the east encompassing eight counties (Collin, Dallas, Delta, Denton, Ellis, Hunt, Kaufman, and Rockwall) and Fort Worth on the west encompassing four counties (Johnson, Parker, Tarrant, and Wise). The local economy is one of the most diverse in the country with major players in key long-term growth industries including aerospace/defense, transportation, healthcare, financial services, high technology, distribution, and trade. The Metroplex, as the DFW area is referred to locally, ranks at or near the top of all U.S. metros for business relocations. In November 2016, Forbes ranked Texas as number one in Economic Climate out of all 50 states.
DFW’s economic structure has two predominant characteristics that provide the foundation for its strength. First, the DFW economy is well diversified, thereby minimizing the market risk against a downturn in any particular industry. Second, most of the Metroplex’s principal industries are well positioned for expansion in the near future. The long-term outlook suggests the health and expansion of the DFW economy will continue for years to come, as the metro is projected to rank first in the nation in absolute change in population growth, while also ranking first nationally in absolute change in job growth during the five-year period ending 2021, according to Moody’s Economy.com report as of February 2017.
|Distribution waterfall between iintoo, developer and other investors in the JV|
|NOI for sale price calculation||2,212,561|
|Residual asset value @ 6.00% CAP||36,876,016|
|Cost of Sale 1.25%||(460,950)|
|Net sale proceeds||36,415,066|
|Net sale proceeds||36,415,066|
|Proceeds from operation||2,986,377|
|Return of capital||(11,435,274)|
|Total profits for distribution||8,675,777|
|Expected Cash flow for TIC Investor||783,465|
|Expected Cash flow for iintoo investors||783,465|
|Expected Cash flow for developer and other equity investors||1,419,448|
|Return of the rest of capital contribution - TIC Investor - pro rata||2,216,535|
|Return of the rest of capital contribution - iintoo investors - pro rata||2,216,535|
|Return of the rest of capital contribution - developer and other equity investors - pro rata||4,015,826|
|Hurdle return for TIC investor (8%) - pro rata||720,000|
|Hurdle return for iintoo investors (8%) - pro rata||720,000|
|Hurdle return for developer and other equity investors (8%) - pro rata||1,304,466|
|iintoo share of profits above hurdle return and before TIC Investor receives IRR of 18.7% - pro rata (70% Equity investors, 30% Developer)||1,089,240|
|iintoo share of profits above hurdle return and before iintoo investors receives IRR of 18.7% - pro rata (70% Equity investors, 30% Developer)||1,089,240|
|Equity investors share of profits above hurdle return and before iintoo investors receives IRR of 18.7% - pro rata (70% Equity investors, 30% Developer)||1,973,439|
|Developer promote above hurdle return and before iintoo investors receives IRR of 18.7% (30% Developer, 70% Equity Investors)||1,779,393|
|Total proceeds - iintoo investors & TIC Investor||9,618,479|
|Total proceeds- developer and other equity investors||10,492,571|
|Total project proceeds||20,111,051|
|Profit distribution - iintoo investors ($)|
|iintoo investors share||4,809,240|
|Return of loan contribution for iintoo Debt investors||1,130,000|
|Interest payments for Debt investors 10% annually (including iintoo success fee)||423,750|
|Return of capital contribution for iintoo Equity investors||2,216,000|
|Profit remain for distribution for Equity investors (not including iintoo success fee)||1,033,490|
|Total profit distribution for iintoo investors||4,803,240|
|Total proceeds - iintoo investors & iintoo TIC Investor||9,618,479|
|TIC investor share||4,809,240|
|iintoo investors share||4,809,240|
|Projected cash flows ($)||Year 1||Year 2||Year 3|
|Repairs, Maintenance & Turnover||125,000||128,596||132,454|
|Market & Administration||98,000||100,819||103,844|
|Net operating income||1,657,938||1,962,889||2,142,093|
|Asset Management Fee||(153,628)||(156,701)||(159,835)|
|Application of Working Capital Reserve||225,000||-||-|
|Net Cash flow before tax||886,180||962,400||1,137,798|
|TIC Investor projected cash flow||232,486||252,482||298,497|
|Expected Cash flow for iintoo investors||232,486||252,482||298,497|
|Expected Cash flow for iintoo - Debt investors (10% interest)||113,000||113,000||113,000|
|Expected Cash flow for iintoo - Equity investors||119,486||139,482||185,497|
|Expected CoC for iintoo - Equity investors||5.4%||6.3%||8.4%|
|Net cash flow - Equity unit ($25,000)||Projected sale of asset after 36 months|
|iintoo success fee (%)||18%|
|iintoo success fee ($)||186,028|
|Total return to investors||3,063,462|
|Deduction of principal||2,216,000|
|Total profit for 36 months (before Tax)||847,462|
|Target annual yield||12.75%|
|Net profit per capital unit||34,561|
|Expected profit per capital unit||9,561|
iintoo investors are expected to hold approximately 71% of the intermediary company that holds the asset
(after the likely inclusion of a tenant-in-common investor, "Direct Investor", with whose inclusion the
intermediary company will hold 73.9% of the asset).
18 months after the project begins, the sponsor is entitled to a buyout right that should amount to a return to
the iintoo investor entity of 18.70% IRR on the equity plus an amount equal to 7% of the equity that it invested
in the project.
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