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High Concept Pitch
Executive Summary
Salt Lake City, Utah - Arda Jean Apartments:
 |
 |
 |
 |
Asset Type |
Min. Investment |
Term |
Projected Annual Returns |
Income-GeneratingMulti-Family |
$25,000 |
24 Months |
12.03% |
Location:
2860 S 200 E Salt Lake City, Utah USInvestment Summary:
Milestones:
 |
 |
 |
|
 |
08/17/2017 |
|
12 Months |
24 Months |
24 Months |
Raise |
Closing |
Contractual buy-outoption |
Projected saleof asset |
Projected projectcompletion |
Capital Stack:
Sources of Finance |
% |
Ownership |
Amount |
iintoo Equity |
|
|
$ 1,165,500 |
iintoo Debt |
|
|
$ 684,500 |
Sponsor |
|
|
$ 287,500 |
Property Owner Mortgage |
|
|
$ 4,760,000 |
Total |
$ 6,897,500 |
||
Profit Distribution: 75/25
Preferred Returns: 10%
Investment Structure:
| iintoo's Investment in JV | Deal Initiation Costs | Total Capital Raise | Min. Investment |
| $1,850,000 | $210,000 | $2,060,000 | $25,000 |
Project Costs:
| Acquisition | Associated Costs | Total |
| $5,800,000 | $1,097,500 | $6,897,500 |
Key Points:
- Income-generating property
- Short term investment - only 24 months!
- Income-generating - projected 5.8% on average cash on cash annual returns
- Stable asset - occupancy is currently at 93% and was relatively high (approximately 90%) even during the economic crisis of 2009. The sponsor’s planned capital enhancement program is expected to result in an even higher occupancy rate
- Strong market with 3% economic growth
- Salt Lake City has seen robust economic growth over the past several years
- Utah has been ranked by Forbes as the top state in the states for new opening business and working environment
- Salt Lake City has been ranked by Forbes as the #1 city posted to become Tomorrow Tech Mecca
- Experienced sponsor
- ALPHA WAVE INVESTORS is an experienced company specializing in multi-family properties, with its own property management subsidiary.
- Contractual obligation by the sponsor to meet his business plan targets including deadlines, expenses, profit distribution and reporting
- Investor protections
- Ownership of the asset via a designated company held by the investors
- The principal of the sponsor has provided a personal guarantee of the obligations of the sponsor under the JV agreement
- iintoo will oversee and monitor the project until its completion and provide investors with quarterly progress reports
- The sponsor has an option to Buyout iintoo’s investors’ stake for a set price between 12 months and 18 months from the date of closing
Property Summary:
 |
 |
General:
Arda Jean Manor
2860 S. 200 E. Salt Lake City, Utah
Year Built: 1973
Asset Class: C
Number of Units: 72
Average SF Per Unit: 700
Number of Parking Space: 94
Unit Mix:
- One Bedroom: 70 Units
- Two Bedrooms: 2 Units
Location:
Salt Lake City is the capital of the state of Utah. With a population of over 194,000, the city is the core of the Salt Lake City metropolitan area, which has a population of over 1 million. The city was named after the Great Sale Lake, which surrounds it.
Thanks to its central location in the western United States, Sale Lake City is known as the "Crossroads of the West." Two major cross-country freeways, I-15 and I-80 intersect the city, constituting an important transportation corridor which is surrounded by many warehouses and distribution centers.
Sale Lake City hosted the winter Olympic games in 2002, an event that is still considered one of the most successful Olympic games ever. Many restaurants and hotels were established for the games and tourism have since flourished.
Sale Lake City has developed a strong outdoor recreation tourist industry based primarily on skiing but also is one of the notable industrial baking and transportation centers of the U.S.
Amenities:
- Laundry facilities
- BBQ area
Specifications:
- Dishwasher
- Mounted air conditioner units
- Central heating
Nearby businesses:
The property is located in close proximity to downtown Salt Lake City, not far from the Sale Lake City International Airport (currently undergoing a $2.2 billion expansion) as well as major employment center in downtown. One of the major employers in the city is Delta Airlines, most of whose flights to the western United States pass through the city's airport.
Sponsor ID :
| Seniority | Founded in 2013 |
| Expertise | Alpha wave's strategy is to make cycle-appropriate, value-driven investments where clear upside may be achieved through hands-on management, competitive repositioning, operational efficiencies and price appreciation. |
| Unit track record | Purchased 1,416 units in 14 different complexes and a hotel, manages 1,000 additional units in 20 different complexes |
| Asset Value track record | $67,000,000 |
| Region of expertise | Las Vegas (Nevada), Tuscon (Arizona), Utah |
https://www.linkedin.com/in/jjfisher/ -
Skyline Villas | Las Vegas, NV
-
Villa Pacifica | Tucson, AZhttp://www.liveatvillapacifica.com/
Market Summary:
Salt Lake City is a potentially attractive market for multifamily investment for several reasons: (1) very high job growth and low unemployment, (ii) below-the-radar status, (iii) increasing rental demand for workforce / attractively-priced rental properties, (iv) high population growth rate, (v) high occupancy rates and (vi) stable CAP rates. In recent years the city has seen growth in the financial, technology and retail sectors, leading to an economic growth rate of 3% and an unemployment rate below 4%. Salt Lake City has been on the top of many lists supporting apartment demand and rental growth:
- Forbes ranks Utah as #1 for doing business
- Bloomberg ranks Salt Lake City #1 for upward mobility
- Realtor.com ranks Salt Lake City #1 Best City for Millenials
- WalletHub ranks Salt Lake City as the #1 city to start a career
Economic growth in SLC:
Employment growth rate in SLC is higher than the national average:
Population growth in SLC:
Top tech firms are moving to SLC:
Low vacancy and high occupancy rates in SLC:
Rent growth rates in SLC:
Stable CAP rates forecasted:
Projected cash flows ($):
| Projected cash flows ($) | Year 1 | Year 2 |
| Rental income | 649,212 | 744,251 |
| Payroll | 103,340 | 107,474 |
| Property taxes and insurance | 60,876 | 62,702 |
| Repairs, Maintenance & Turnover | 25,200 | 32,616 |
| Utilities | 26,076 | 26,598 |
| Market & Administration | 25,317 | 29,025 |
| Management fee | 19,724 | 22,591 |
| Total expenses | 260,533 | 281,006 |
| Net operating income | 388,679 | 463,244 |
| Debt Service | (249,900) | (273,700) |
| DSCR | 1.56 | 1.69 |
| Asset management fee | (36,375) | (36,375) |
| Release of funds CapeX in reserve | 45,000 | - |
| Net Cash flow before tax | 147,404 | 153,169 |
| Project CoC | 6.9% | 7.2% |
| Expected Cash flow for iintoo investors | 147,404 | 153,169 |
| Expected Cash flow for iintoo - Debt investors (10% interest) | 73,600 | 73,600 |
| Expected Cash flow for iintoo - Equity investors | 73,804 | 79,569 |
| Expected CoC for iintoo - Equity investors | 5.6% | 6.0% |
Profit Calculation and Waterfall:
| Projected Profit Calculation and Waterfall | |
| Distribution waterfall between iintoo, sponsor, and other investors in the JV | |
| NOI for sale | 495,141 |
| Residual Asset Value @ 6.17% CAP | 8,024,975 |
| Cost of Sale 4% | (361,124) |
| Net Sale Proceeds | 7,663,851 |
| Profit calculation | |
| Net Sale Proceeds | 7,663,851 |
| Proceeds from operation | 300,573 |
| Total proceeds | 7,964,425 |
| Bank Loan | (4,760,000) |
| Return of Capital | (2,137,500) |
| Total profits for distribution | 1,066,925 |
| Destruction Waterfall | |
| Expected Cash flow for iintoo investors | 300,573 |
| Return of the rest of Capital contribution - iintoo investors - pro rata | 1,549,427 |
| Return of the rest of Capital contribution - developer and other equity investors - pro rata | 287,500 |
| Hurdle return for iintoo investors (10%) - Pro rata | 370,000 |
| Hurdle return for developer and other equity investors (10%) - Pro rata | 57,500 |
| iintoo share of profits above hurdle return (75%) | 415,065 |
| Developer and other equity investors share of profits above hurdle return (25%) | 224,360 |
| Total proceeds - iintoo investors | 2,635,065 |
| Total proceeds- developer and other equity investors | 569,360 |
| Total project proceeds | 3,204,425 |
Profit Distribution - iintoo investors ($):
| Profit Distribution - iintoo investors ($) | |
| Profit Distribution - iintoo investors (post regional taxes accrual) | |
| Return of capital contribution for iintoo Debt investors | 736,000 |
| Interest payments for Debt investors 10% per annum (including iintoo success fee) | 181,728 |
| Return of capital contribution for iintoo Equity investors | 1,324,000 |
| Profit remains for distribution for Equity investors (not including iintoo success fee) | 393,337 |
| Total Profit distribution for iintoo investors | 2,635,065 |
Net cash flow - Equity unit ($25,000):
| Net cash flow - Equity unit (25,000$) | Projected sale of asset after 24 months |
| Principal | 1,324,000 |
| Profit | 393,337 |
| iintoo success fee (%) | 19% |
| iintoo success fee ($) | 74,734 |
| Total return to investors | 1,642,603 |
| Deduction of Principal | 1,324,000 |
| Total profit for 24 months (before Tax) | 318,603 |
| Target yield per annum | 12.03% |
| Net profit per capital unit | 31,016 |
| Expected profit per capital unit | 6,016 |
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 anyone 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 Site. Investors must be able to afford the loss of their entire investment.
Any real estate investment accessible through the Site involves substantial risks. There can be no assurance that any financial projections, real estate valuations or projected returns viewable through the Site 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 Site, 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 Site.
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$1,900,000
Quick Info
- Investment Goal: $2,060,000
- Pre-Money Valuation: $6,897,500
- Security Type: Limited Partnership Interests
- Minimum Investment: $25,000
-
Location:
Salt Lake City, Utah, United States
- Days Left: 59 days
- Industry: Real Estate
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