Project name
Belle Vista
Location
100 Camellia Ln, Lithonia, Georgia 30058, USA
Initiator
REALIANCE USA B.V.
Local partner
InterCapital Group (ICG)
Property manager
Dayrise Residential
Category
312 Class A–/B+ garden style rental apartments
Expected investment term
Three to five years
Exit strategy
Sale to an (end) investor or longer term hold
Total investment
US$ 84,982,000 (incl. US$ 1,147,500 deferred fees)
Bank loan
US$ 50,372,800
Equity Belle Vista LP (project LP) US$ 33,461,700
– Belle Vista Capital LP US$ 27,475,000
– Belle Vista German Capital LP US$ 2,500,000
– ICG/ REALIANCE US$ 3,486,700
Structure
Participation directly or through separate LLC in Belle Vista German Capital LP of which:
– Mezzanine capital US$ 250,000
– Equity US$ 2,250,000
Participation
From US$ 125,000 excl. 3% emission costs
Distribution
2% year 1, 4% year 2 and thereafter 6% annual
Projected gross total return
62.4% after five years
Projected gross return
12.5% per year (ROI)
Unique selling points
The complex (built in 2002) comprises 312 Class A-/B+ apartments and has a mix of 2-, 3- and 4-room apartments, which meets the housing needs of a wide group of tenants.
Based on the current income, the leasing and value add potential – in interior, common areas and property management – the expected distributable direct return is 2% (year 1), 4% (year 2) and subsequently 6% per annum.
The investment term of this proposition is projected at three to five years. With a ten-year financing from Fannie Mae with a fixed interest rate (4.63%) there is no interest rate risk during the investment term.
For more information you can reach REALIANCE at +31 (0) 20 21 03 180 or invest@realiance.nl.
