Questions? Feedback? powered by Olark live chat software

iintoo Texas Vukota LP

YouTube Video Preview
How much would you like to invest?
$
Minimum investment: $25,000
Upon submission, the Seed Equity team will be in contact with you.

Share this pitch

To make an investment request, you must be a registered investor. You can click the link below to become a registered investor:

Become a Registered Investor


* This private placement investment is only suitable for potential investors who are familiar with and willing to accept the high risk and illiquidity associated with private placement investments. Please review Terms of Use for full disclosures. Also, please review iintoo Texas Vukota LP offering documents for full detailed disclosures/risks before you make any investments.


High Concept Pitch

Renovating, upgrading and selling an income-generating multi-family property comprised of 312 units in Irving, Texas.

Executive Summary

 

iintoo Texas Vukota LP

Renovating, upgrading and selling an income-generating multi-family property comprised of 312 units in Irving, Texas.

Asset Type

Min. Investment

Term

Projected Annual

Returns 

Income-Generating

Multi-Family

$25,000

36 Months

12.75%

Location

‎4111 Polaris Drive Irving, Texas, USA

 

Investment Summary

Renovating, upgrading and selling an income-generating multi-family property comprised of 312 units in Irving, Texas.
 

Milestones

07/05/2017

 

18 Months

36 Months

36 Months

Raise

Closing

Contractual buy-out

option

Projected sale

of asset

Projected project

completion

 
Capital Stack
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
Total ‎$ 30,725,667‏

Profit Distribution

30 | 70

Profit distribution for the project will be 70% for all equity investors and 30% for the sponsor. Thus, the iintoo investor entity (without the iintoo TIC Investor) will be entitled to 18.36% of the profits, relative to the equity invested by it, which is 26.23%.

Preferred Returns

8%

Pursuant to the legal structure and payout schedule, all equity investors will be entitled to a preferred return equal to an 8% annual yield on its investment.

Investment Structure

iintoo's Investment in JV
‎$ 3,000,000‏
Deal Initiation Costs
‎$ 346,000‏
Total Capital Raise
‎$ 3,346,000‏
Min. Investment
‎$ 25,000‏

Project Costs

Acquisition
‎$ 26,700,000‏
Associated costs
$ 4,025,667‏
Total
$ 30,725,667‏

Aerial maps

Aerial maps

Key Points

  • This is iintoo's fourth project with VUKOTA REAL ESTATE.
  • The property's occupancy rate is currently above 95%.
  • The asset is located only 3 miles from Dallas/Fort Worth International Airport. The airport has had an extraordinary impact on the regional economy, supporting 228,000 full-time jobs.
  • Income-producing assets - Projected 6.7% on average cash on cash annual returns.
  • The asset's occupancy and rent price levels have been stable. Even during the crisis of 2008-2010, occupancy rate remained approximately 90%.
  • The principal of the sponsor has provided a personal guarantee of the obligations of the sponsor under the JV agreement.
  • Vukota Real Estate has substantial experience in sponsoring projects of this type - to date, it has purchased 20 similar assets, whose total value is $400 million.
  • Attractive location - as part of DFW Metroplex, Irving has benefited from an ongoing market boom, experiencing major growth in the real estate sector with major new developments, surging demand, and a strong employment growth trend.
  • Proven value add opportunity - The asset will be upgraded and is expected to be sold at its new higher value.
  • All equity investors will be entitled to a 8% annual preferred return, pursuant to the legal structure and payout schedule.
  • The opportunity in this asset lies in the fact that the average rent and sale prices are lower in comparison to similar assets in the market.
  • Nearby developments - The asset is located near Las Colinas, a 12,000-acre business and residential master-planned community positioned in the City of Irving. New major developments are also planned to start in the near future such as Irving Music Factory, Water Street, and Hidden Ridge Development.
  • iintoo will oversee and monitor the project until its completion and provide investors with quarterly progress reports.

Property Summary

General

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.

  • Built in 1983, the 13 3-story buildings consist 312 living units
  • Net rentable area: 239,013 SQF
  • Total lot size: 12.53 Acres

Living unit mix:

  • 12 Studio Units
  • 222 One Bedroom Units
  • 78 Two Bedroom Units
  • 670 Total Parking Spaces

Location

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.

Amenities

Community Amenities:

  • 2 Tennis Courts
  • Recently Remodeled Clubhouse
  • Resort-Style Pool with Volleyball Net
  • Covered Parking
  • Laundry Facilities
  • On-Site Maintenance and Management

Property Amenities:

  • Private Patio or Balcony
  • Walk in Closet
  • Faux-Wood Flooring*
  • Additional Outside Storage Space
  • Wood-Burning Fireplace
  • Sun-Room*

*Select Units Only

Nearby Transportation

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.

Nearby businesses

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.

Management

Tom Vukota, BSc, CFA, CMA // Founder & Chief Investment Officer  

  https://www.linkedin.com/in/tom-vukota-4814481/

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     

   https://www.linkedin.com/in/paul-slye-56b5504/ 

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.

 

Major corporate tenants offering local jobs

 

Located on a landscaped greenbelt

Renovation plan

Comparables 

 

Sponsor ID

 
Seniority Since 2010
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
 

Similar projects completed by the developer

 
Funded by iintoo - SUMMER GROVE APARTMENTS, Colorado Springs, CO
Image result for SUMMER GROVE APARTMENTS, Colorado Springs, CO
 
Funded by iintoo - TANGLEWOOD, Colorado Springs, CO
Image result for TANGLEWOOD, Colorado Springs, CO
 
Funded by iintoo - STRATFORD AT LOWRY, Denver, CO
Image result for STRATFORD AT LOWRY, Denver, CO
 
Market Summary

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.

 

Projected profit calculation and waterfall

   
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
   
Profit calculation  
Net sale proceeds 36,415,066
Proceeds from operation 2,986,377
Total proceeds 39,401,443
Bank loan (19,290,393)
Return of capital (11,435,274)
Total profits for distribution 8,675,777
   
Distribution waterfall  
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 ($)

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
 

Profit distribution - iintoo investors & iintoo TIC Investor ($)

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 ($)

Projected cash flows ($) Year 1 Year 2 Year 3
       
Rental income 3,390,948 3,886,391 4,168,590
Payroll 400,000 400,000 400,000
Property taxes 481,596 631,976 703,456
Insurance 63,024 64,837 66,782
Repairs, Maintenance & Turnover 125,000 128,596 132,454
Utilities 335,000 344,638 354,977
Market & Administration 98,000 100,819 103,844
Management fee 136,790 156,792 166,744
Contingency 93,600 95,844 98,240
Total expenses 1,733,010 1,923,502 2,026,497
Net operating income 1,657,938 1,962,889 2,142,093
Debt Service (810,196) (810,196) (810,196)
Asset Management Fee (153,628) (156,701) (159,835)
CapEx (32,933) (33,592) (34,264)
Application of Working Capital Reserve 225,000 - -
Net Cash flow before tax 886,180 962,400 1,137,798
Project CoC 7.7% 8.4% 9.9%
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)

Net cash flow - Equity unit ($25,000) Projected sale of asset after 36 months
Principal 2,216,000
Profit 1,033,490
iintoo success fee (%) 18%
iintoo success fee ($) 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

Ownership

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).

 

Buyout

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.

 
 
 

 

 

 

 

 

 

 

 

Legal structure

 

 

The above may include forward-looking statements, including forecasts, evaluations, pro forma figures, estimates and other information relating to future events and issues. Forward-looking statements may relate to, among other things, revenues, earnings, cash flows, capital expenditures and other financial items. Forward-looking statements may also relate to our business strategy, goals and expectations concerning our market position, future operations, profitability, liquidity and capital resources. All statements other than statements of historical facts are forward-looking statements and can be identified by the use of forward-looking terminology such as the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "projected", "will" and similar terms and phrases. Any forward-looking information contained above is based, in addition to existing information of the company, on present company expectations and evaluations regarding future developments and trends and on the interaction of such developments and trends. Although we believe the assumptions upon which any forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Our business and operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our performance and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements are based on current expectations and are not guarantees of future performance. Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in the above depending on a variety of factors. All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable laws, we undertake no obligation to update any information contained above or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of the publishing of the above.

Private placements of securities are intended for accredited investors (for persons residing in the U.S.). Such private placements of securities have not been registered under applicable securities laws, are restricted and not publicly traded, may be subject to holding period requirements, and are intended for investors who do not need a liquid investment. These investments are not bank deposits (and thus are not insured by the FDIC or by any other federal governmental agency), are not guaranteed by the issuer or any third party working on behalf, and may lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the Platform. Investors must be able to afford the loss of their entire investment. 

Any real estate investment accessible through the Platform involves substantial risks. There can be no assurance that any financial projections, real estate valuations or projected returns viewable through the Platform are accurate or in agreement with market or industry valuation, an issuer and/or any third party working on behalf makes no representations or warranties as to the accuracy of such information and accepts no liability therefor whatsoever. Investors should always conduct their own due diligence, not rely on the financial assumptions or estimates displayed on the Platform, and should always consult with a reputable financial advisor, attorney, accountant, and any other professional that can help them to understand and assess the risks associated with any investment opportunity accessible through the Platform.

Post a Comment

You must log in to comment.

Comments

No comments yet.

$2,500,000

Raised of $3,346,000
 

Quick Info

  • Investment Goal: $3,346,000
  • Funds Committed To Round: $1,500,000
  • Pre-Money Valuation: $30,725,667
  • Security Type: Limited Partnership Interests
  • Minimum Investment: $25,000
  • Location: United States Irving, Texas, United States
  • Days Left: 77 days
  • Industry: Real Estate