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iintoo New Jersey One Wall LP

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Funded

Offering completed on July 17, 2017.

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* 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 New Jersey One Wall LP offering documents for full detailed disclosures/risks before you make any investments.


High Concept Pitch

Essex County, New Jersey Upgrading, operating and selling two income-generating multi-family properties comprised of 157 units total in Essex County, New Jersey. 

Executive Summary

Selling Limited Partnership Interests in two income-generating multi-family properties comprised of 157 units total in Essex County, New Jersey.  
 
 
 
 
Property Summary

General

212 Central Avenue, Orange, New Jersey

A six-story multifamily residential apartment complex. Originally constructed circa 1945, the improvements consist of 52 rental apartments and two retail units. The building contains 45,600± square feet of gross building area (GBA), with a net rentable area (NRA) of approximately 38,750± square feet.

The unit mix is comprised of:

37 one-bedroom units

10 two-bedroom units

5 studio units

2 grade-level retail units

 

110 Washington Street, East Orange, New Jersey

An 11-story residential apartment complex, known as Washington Plaza. Originally constructed circa 1955, the improvements consist of 103 rental apartments in a building that contains 150,810± square feet of gross building area (GBA), with a net rentable area (NRA) of approximately 102,200± square feet.

The unit mix is comprised of:

1 three-bedroom unit

61 two-bedroom units

21 one-bedroom units

20 studio units

 

Key Points

  • Income producing assets - projected 4.5% cash on cash quarterly returns
  • Consistent high occupancy rate over time 95% occupancy
  • The Principals of the Sponsor have provided a personal guarantee of the obligations of the Developer Parties under the Agreement
  • The iintoo investor entity will be entitled to a 7% annual preferred return, pursuant to the legal structure and payout schedule
  • iintoo investors will indirectly hold 41.16% of the intermediary company that holds the 2 LLC entities that hold the asset
  • Onewall Partners has a proven track record consisting of 21 similar projects in the area, with total asset value of 95 million Dollars, all within a 10-mile radius of the company’s main offices
  • Pursuant to the business plan, there will be a $ 478,000 reserve set aside for unforeseen expenditures, which could potentially be distributed as profits to investors if not spent by the end of the project’s term.
  • iintoo will oversee and monitor the project until its completion and provide investors with quarterly progression reports

Location

The two assets are located on 212 Central Ave, and 110 Washington St. in East Orange, a primarily residential neighborhood with close proximity to shopping and primary transportation access.

Nearby Transportation

Both assets are conveniently located near Garden State Parkway and Interstate 280;  less than 30 minutes commute to New York City.

110 Washington St.

Public transportation - one mile from three different stops along the Gladstone Branch and Morris & Essex lines of the New Jersey Transit system, and 1.5 miles from a stop on the Montclair-Boonton line, all with service into New York’s Pennsylvania Station (roughly 30-minute train ride).

Less than eight miles from Newark Liberty International Airport (EWR) in the nearby cities of Newark and Elizabeth.

212 Central Ave.

Less than one mile from three different train stations of the New Jersey Transit system.

Market Summary

Essex County, New Jersey

The asset is located in the City of East Orange in Essex County, New Jersey, which is considered to be part of the Northern New Jersey Region, bounded by the State of New York to the north, the Hudson River and Raritan Bay to the east, the Delaware River to the west, and Monmouth and Mercer counties to the south.

Northern New Jersey region is comprised of 11 counties, including Essex County where the assets are located; the northeastern area of the region, is heavily urbanized and densely developed, while the remainder is largely suburban and semi-rural. Bergen, Essex, Hudson, Middlesex and Union counties are suburban to urban, housing 68.0% of the region’s population and 41.0% of the state’s population. The region extends 45 to 55 miles west of Midtown Manhattan.

“The Crossroads of New Jersey”

East Orange, New Jersey, also known as “The Crossroads of New Jersey,” is located at the intersection of the Garden State Parkway and Interstate 280, just several miles from Newark Liberty International Airport and less than 30 minutes from New York City, enabling a convenient commute to its residents.

East Orange became incorporated as a city on January 1, 1909. By the close of the 19th century, East Orange was an agriculturally rich area populated by oil tycoons and Newark industrialists. East Orange experienced a huge population surge between 1940-1950, paving the way for the addition of luxury high-rise buildings and a boom of commercial businesses along Main Street and Central Avenue.

Nowadays East Orange populates nearly 65,000 culturally diverse residents from around the globe. Ideal for urban renewal, East Orange combines urban and suburban living. Spacious and affordable housing, a low crime rate, main commercial corridors, distinctive Caribbean and Southern cuisine, transit access and green spaces.

Transportation continues to be one of East Orange’s greatest assets; the city is one of 28 cities to be designated as a Transit Village and its Brick Church and East Orange Train Stations offer daily direct service to midtown Manhattan.

Urban Gentrification

The two assets are located on 212 Central Ave and 110 Washington Ave. in East Orange, a primarily residential neighborhood with good proximity to shopping and primary transportation access. Overall, both neighborhoods are considered a desirable place to live at and have an adequate supply of retail, commercial, educational and recreational facilities.

With regards to the assets’ marketing stance, the area is beginning to experience gentrification, emerging the presence of residential improvements in the properties’ immediate area and thus, making the properties compatible with its surrounding. With effective marketing and management, the assets should continue operating on a stabilized basis over the foreseeable future.

 

Milestones                                                        

06/14/2017

Raise                            Closing                        36 Months                                  36 Months

                                                               Projected sale of assets        Projected project completion

 

Capital Stack
Sources of finance % Ownership amount
iintoo Equity     ‎$ 1,239,000‏
Debt investors     ‎$ 619,500‏
Sponsor and other investors Equity     ‎$ 2,530,000‏
Property Owner Mortgage     ‎$ 10,226,250‏
Total ‎$ 14,614,750‏
 
Profit Distribution: 
30 | 70
Profit distribution for the project will be 30% for the iintoo investor entity and 70% for the sponsor & other investors. 
 
Preferred Returns: 
7%
Pursuant to the legal structure and payout schedule, the iintoo investor entity will be entitled to a preferred return equal to a 7% annual yield on its investment. 
 

Investment Structure

iintoo's Investment in JV

‎$ 1,239,000‏

Deal Initiation Costs

‎$ 169,000‏

Total Capital Raise

‎$ 1,408,000‏

 Min. Investment

‎$ 25,000‏

Investment structure *

* The $ 1,408,000 represents the maximum gross potential equity raise. In addition, up to a gross amount of $ 667,000 may be raised through an offshore debt offering.

Project Costs

Acquisition

‎$ 13,635,000‏

Associated costs

‎$ 979,750‏

Total

‎$ 14,614,750‏

 

One Wall Partners Track record

Seniority

Since 2010

Expertise

One Wall Partners is a vertically integrated investment and management firm that focuses on transit-oriented workforce housing. Their headquarters is located in Newark, NJ, within 10 miles of all their assets, They run an in-house property management group, One Wall Management, to control 100% of their value chain while simultaneously realizing significant operational efficiencies.

SQF track record

Since 2010, the company has purchased a $95M portfolio, including 21 multi-family properties totaling over 1,190 units.

Unit track record

The company owns another management company.

Region of expertise

Northern New Jersey

 
 

 

Management Team:

    

Andy Wallace // CEO  

 https://www.linkedin.com/in/andy-wallace-12971720/

Andy has more than 30 years of executive experience in real estate acquisitions, entitlements, developments and business operations. As the company CEO he primarily supports the executive and management team; oversees the company’s Strategic Plan; leads risk management, HR management and marketing/brand management and marketing/brand management and drives capital raises.

 


Ron Kutas // Chief Operating Officer  

  https://www.linkedin.com/in/ron-kutas-1912921a/

 Ron has more than 11 years of experience in real estate development, construction and project management, financial oversight and property management operations. As the COO he primarily leads day-to-day operations and execution of our property management company, One Wall Management. Additionally, he oversees legal matters and assists with capital/debt structures and acquisitions.

 

Nate Kline// Chief Investment Officer  

 https://www.linkedin.com/in/natekline/

Nate has more than 13 years of institutional finance and private equity investment experience with six years focused on commercial real estate. As the CIO, he primarily formulates investment strategies; sources underwrites and executes acquisitions; designs capital structures; monitors performance and compliance and provides day-to-day asset management oversight of our portfolio. 

 
Similar projects completed by the developer
 
116 Lenox Ave. East Orange, NJ
Image result for 116 Lenox Ave. East Orange, NJ
 
172 William St. East Orange, NJ
Image result for 172 William St. East Orange, NJ
 
41 Main St. Orange, NJ 
Image result for 41 Main St. Orange, NJ

 

 

Projected cash flows ($)
Projected cash flows ($) Year 1 Year 2 Year 3
       
Rental income 1,864,945 1,938,927 2,015,869
Payroll 51,006 52,281 53,588
Property taxes 399,583 412,570 425,978
Insurance 62,918 64,490 66,103
Repairs, maintenance & turnover 91,533 93,821 96,166
Utilities 244,029 243,839 243,958
Market & administration 5,125 5,253 5,384
Management fee 93,247 96,946 100,793
Total expenses 947,440 969,200 991,972
Net operating income 917,505 969,727 1,023,897
CapEx (239,608) (92,174) (146,344)
Debt service (370,702) (570,358) (570,358)
Net cash flow before tax 307,195 307,195 307,195
Project CoC 7.0% 7.0% 7.0%
Expected cash flow for iintoo investors 130,095 130,095 130,095
Expected cash flow for iintoo - Debt investors (10% interest) 66,700 66,700 66,700
Expected cash flow for iintoo - equity investors 63,395 63,395 63,395
Expected CoC for iintoo - equity investores 4.5% 4.5% 4.5%

 

Projected Profit Calculation and Waterfall ($)
Distribution waterfall between iintoo, sponsor, and other investors in the JV  
Third year NOI 1,023,897
Residual asset value @ 5.80% CAP 17,653,399
Cost of sale 5% (882,670)
Net sale proceeds 16,770,729
   
Profit calculation  
Net sale proceeds 16,770,729
Proceeds from operation 921,585
Total proceeds 17,692,314
Bank Loan (9,812,752)
Return of capital (4,388,500)
Total profits for distribution 3,491,062
   
Distribution waterfall  
Expected cash flow for iintoo investors (equity debt) - pro rata 390,285
Expected cash flow for developer and other equity investors - pro rata 531,300
Return of the rest of capital contribution - iintoo investors - pro rata 1,468,215
Return of the rest of capital contribution - developer and other equity investors - pro rata 1,998,700
Hurdle return for iintoo investor entity (7%) - Pro rata 390,285
Hurdle return for developer and other equity investors (7%) - Pro rata 531,300
iintoo share of profits above hurdle return (30%) 770,843
Developer and other equity investors share of profits above hurdle return (70%) 1,798,634
Total proceeds - iintoo investors 3,019,628
Total proceeds- developer and other equity investors 4,859,934
Total project proceeds 7,879,562 

 

Profit Distribution - iintoo Investors ($)
Projected profit distribution - iintoo investors 3,001,628
   
Return of capital contribution for iintoo debt investors 667,000
Interest payments for debt investors 10% per annum (including iintoo success fee) 250,125
Return of capital contribution for iintoo equity investors 1,408,000
Profit remain for distribution for equity investors (not including iintoo success fee) 676,503
Total projected profit distribution for iintoo investors 3,001,628 

 

Net Cash Flow - Equity Unit $ 25,000
Net cash flow - equity unit $ 25,000 Projected sale of assets after 36 months
Principal 1,408,000
Profit 676,503
iintoo success fee (%) 20%
iintoo success fee ($) 135,301
Total return to investors 1,949,202
Deduction of principal 1,408,000
Total profit for 36 months (before Tax) 541,202
Target annual return 12.81%
Net profit per capital unit 34,609
Expected profit per capital unit 9,609

 

 


 

 

 

 

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, and issuer and/or any third pary 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.

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$2,075,000

Raised of $2,075,000
 

Quick Info

  • Investment Goal: $2,075,000
  • Funds Committed To Round: $600,000
  • Pre-Money Valuation: $14,600,000
  • Security Type: Limited Partnership Interests
  • Location: United States New Jersey, United States
  • Days Left: Funded
  • Industry: Real Estate