Summit on Boulder Apartments is a new 216-unit multifamily development project to be constructed in Henderson, NV. The project is scheduled to break ground near the beginning of 2021.
Project offers a strong 27% IRR along with a mindful deal structure considering:
Significantly lower rental rates than comps (plenty of room to increase)
Preferred equity (7%) begins accruing as soon as you enter the deal, not after project completion like many of our competitors
The land value has already gained nearly $2mm in equity
Obtainable construction timeline
Sizable budget contingency over $1mm
Quick return of capital after permanent loan is in place
A low 65% LTV
A 3.5% interest rate on the construction loan
RealSource was established in 1989 with the central focus of putting our investor clients in the right place, at the right time, to help insure their maximum profitability.
In real estate investing, buying low and selling high is a matter of knowing where and when, and that requires research. In order to place our investments in the right "where and when" circumstances, we track 160 domestic markets.
Projected to exit in 5 years with the following returns:
Investor IRR: 27.3% (including sale proceeds)
Investor cash-on-cash return: (excluding sale proceeds)
Year 1: 0.5% Year 2: 91.3% Year 3: 8.4%
Year 4: 9.0% Year 5: 9.2% Average: 23.7%
Equity Multiple: 1.9x
This material does not constitute an offer or a solicitation to purchase securities. This is an informational summary and is authorized for use only by accredited investors.