Project name
Multifamily Portfolio III (FULLY FUNDED)
Location
The Paxton
The Monroe
Beacon Core
Integra Avalon
Initiator
REALIANCE USA B.V.
Local partner
InterCapital Group LLC
Campus Realty Advisors
Integra Land Company
Property manager
In-house: Dayrise Residential
In-house: Asset Campus Housing
External property manager
Category
The Paxton | 296 existing rental apartments with value-add potential
The Monroe | 254 units/796 student rooms with value-add potential
Beacon Core | 158 units/456 student rooms, Core +
Integra Avalon | Development of 280 garden-style rental apartments
Expected investment term
Five to seven years with possible exits from year 3
Exit strategy
Sales (per object or as a (partial) portfolio)
Participation
From US$ 250,000
Total investment US$ 267,002,468
The Paxton US$ 75,328,500
The Monroe US$ 56,250,175
Integra Avalon US$ 81,489,638
Beacon Core US$ 53,934,156
Bank loan US$ 155,927,693
The Paxton US$ 43,250,000
The Monroe US$ 36,029,500
Integra Avalon US$ 44,819,300
Beacon Core US$ 31,828,893
Equity US$ 111,074,775
The Paxton US$ 32,078,500
The Monroe US$ 20,220,675
Integra Avalon US$ 36,670,338
Beacon Core US$ 22,105,263
Structure
Participation directly through Multifamily Portfolio III German Capital LP or through seperate Capital LPs
Distribution (after first year)
After the second year, based on available cash flow from underlying projects. Target distribution total 4% per year, increasing to 6% per year
Projected gross total return
60.9%
Projected gross return
12.4% per year (ROI)
Unique selling points
Multifamily Portfolio III offers a diversified investment in four real estate propositions focused on the Multifamily category in both rental housing and student housing. This proposition involves collaboration with three of our four strategic local US partners. The Multifamily category has the significant advantage of being an inflation hedge, where rental income can be adjusted annually to current market levels due to relatively short leases. In addition, investments in specifically student housing tend to be less sensitive to economic fluctuations.
Sun Belt growth regions in which to invest are characterized by strong fundamentals, such as strong population and employment growth. As for the niche student housing market, investments are made in propositions with healthy annual enrollment trends at Tier 1/Tier 2 universities. The risk of this proposition is mitigated by diversification in property type, location, local partners and the risk profile of the propositions.
The Paxton, Georgia | A complex consisting of 296 rental apartments with value-add potential through renovation. The project has an LTV at acquisition of 65.5%, with financing fixed for seven years at 5.28%.
The Monroe, Indiana | A complex consisting of 254 units/796 student rooms with value-add potential through renovation. The project has an LTV at acquisition of 75.8%, with financing fixed for three years at 6.30%.
Beacon Core, Georgia | A complex completed in 2022 consisting of 158 units/456 student rooms, structured as a core investment. The project has an LTV at acquisition of 60%, with financing fixed for five years at 6.64%.
Integra Avalon, Florida | A complex to be developed consisting of 280 garden-style rental apartments. The project has an LTC of 55% (supplemented by preferred equity to 65%), with financing expected to be locked in for four years at an interest rate of SOFR + 3.0%.
For more information you can reach REALIANCE at +31 (0) 20 21 03 180 or invest@realiance.nl.
