Project name
Villas at West Ridge (FULLY FUNDED)
Location
Villas at West Ridge, Atlanta, Georgia, USA
Initiator
REALIANCE USA B.V.
Local partner
InterCapital Group (ICG)
Property manager
Category
Garden style rental apartments (230 units)
Expected investment term
5 years
Exit strategy
Sale to an investor
Totale investment
US$ 30,227,750
Bank loan
US$ 22,400,000
Equity
US$ 7,827,750
Structure
Direct participation in Villas at West Ridge Apartments LP of which:
• Mezzanine US$ 1,500,000
• Equity Dutch and German investorss US$ 5,400,000
• Equity ICG and REALIANCE US$ 927,750
Participation
Minimum US$ 125,000 excl. 3% emission costs (216 participations of US$ 25,000)
Projected gross capital growth
80.4% over 5 years
Projected gross ROI
16.1% per annum
Quarterly distribution
7% per annum
Unique selling points
Atlanta is one of the most dynamic regions of the US and has a favorable business climate and a pleasant living climate for its residents.
Of the 12 largest US cities, Atlanta has the second largest employment growth, resulting in a growing demand in rental apartments.
Location direct at Interstate 20, close to employment centers in Douglasville, Fulton Industrial Corridor and Six Flags Atlanta, but also Hartsfield-Jackson International Airport and Mid- and Downtown Atlanta. The community is also close to Sweetwater Creek State Park.
Submarket at the westside of Altanta has high ‘barriers to entry’ for development of rental apartments, which limits future supply.
Villas at West Ridge built in 2003 is a relatively young rental apartment community of excellent quality with an excellent opportunity for a modernization with the goal to increase rents.
Local partner is highly experienced as investor and ‘property manager’ with similar projects in the south of the US with Atlanta as one of her major markets
Investment has a defensive risk profile strengthened by a fixed 10-year loan, so there is no refinancing risk during the investment period.
Low annual interest rate of 4.5% (budget) and current occupancy rate of 96% in combination with ‘value-add’ potential provide an annual expected cash-on-cash return of 7%.
ICG and REALIANCE account for 14.7% of the total equity.
For more information you can reach REALIANCE at +31 (0) 20 21 03 180 or invest@realiance.nl
