Below is a description of one of our recent transaction. We are not looking for investors in this deal, but are showing it as an example of what we do.
Investment Summary:
Places at Red Rock Apartments is a multifamily community located in the south side, Five Points South neighborhood of Birmingham, Alabama. The area is a gentrifying part of Birmingham and is home of numerous restaurants and shops. The area also is in walking distance to UAB (University of Alabama-Birmingham), the UAB Hospital, the Birmingham VA Medical Center, and the Vulcan Park and Museum. It is a short bike ride to downtown Birmingham or downtown Homewood. The property has 56 units, 38 one bedroom, one bath units and 18 two bedroom, one and a half townhouse units. About 30% of the units have W/D hookups and an additional 30% have fireplaces.
During the first two years of ownership we renovated these units to a standard acceptable to young millennials that currently occupy many surrounding properties. We replaced flooring with vinyl plank, updated kitchens with new cabinets, countertops and appliances; bathrooms with new toilets, vanities and tile, improve the utility usage at the property by installing water saving fixtures and energy saving appliances and lighting. We upgraded the common areas with a new laundry room, office, dog park and grill -n-chill area.
Market:
The key to this investment is the location of this property. The Five Points South area of Birmingham is an attractive gentrifying area of town. Numerous properties have undergone this type of rehab and all are achieving much higher rents much higher rents. The properties’ proximity to downtown, the hospitals, the university, and many nightspots make this an attractive area to live. This area is seen as a place that young professions can live in a vibrant area near downtown, but at a reasonable price point.
Projected Returns:
| Year 1 | Yr 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | IRR | Multiple |
| 7% | 7.5% | 8% | 8.5% | 9% | 10% | 11% | 14.5% |
2.2x |
Actual Returns:
| Year 1 | Year 2 | Year 3 |
| 7% | 5% | 11% |
Projected multiple based on current value : 2.1x
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* This is not an offer to sell “investment units” or a solicitation of investment funds. The purpose of this document is to present information about and to ascertain investor interest in a real estate project. Interested investors will receive a copy of the Private Placement Memorandum (PPM) as well as a copy of the proposed Operating Agreement. An offer to invest can only be made to a prospective investor upon his or her receipt of the PPM and Operating agreement proceed, and only in those states in which the offering is exempt from registration under applicable securities law.
The “investment units” described are speculative and involve risk. This information includes forward looking statements, estimated and projections regarding events that may occur in the future. Failure of such events to occur can adversely affect the potential investments.