ESTATES AT CROSSROADS
Six Reasons to Invest in This Deal
Strong Performance During COVID
Estates at Crossroads is performing well during the COVID-19 pandemic, and has minimal concessions and debt, while increasing rents by over 5% (in the past 3 quarters) and maintaining high occupancy of 96%.
Strong A+ Location in Atlanta MSA
The Property is located in the highly desirable Duluth submarket, only 30 minutes outside downtown Atlanta, where rents are projected to increase by a yearly average of 5.8% in the next 3 years (based on AxioMetrics report).
Institutional Seller - Asset In Mint Condition
The Property is owned by an institutional seller who kept the property in great condition, with minimal deferred maintenance, leaving us the opportunity to focus on unit renovation and increasing rents.
Strong Tenant Base
The Property has a strong and desirable tenant base, including tech, medical, and business owners. As an indication to the strength of its tenant base, out of 344 tenants, only 1.7% of tenants owe current ownership.
Rents Are Below Market
Nearby assets, some of which are older than Estates at Crossroads, charge rents that are higher by $173-$300 than the Property. However, to be conservative, we are only underwriting to $128 premiums.
True Value-Add Opportunity
Some of the units have been renovated, but even those renovated units have old finishes, such as carpet throughout and no granite countertops. By leaving some of the most desirable finishes outside the renovation scope, the seller has left a lot of room for us to bring up the units to market level and charge premiums for 100% of the units.
This is a strong opportunity in a strong market, and Ellie Perlman and her family are investing in this deal.
Estates at Crossroads Projected Returns:
Class B Investors
Projected Annual Average Return (average return including sale proceeds): 14.73%
Projected Cash-on-Cash (average return excluding sale proceeds): 6%
Projected IRR: 12%-13%
Minimum Investment: $100,000
Class A Investors
Higher cash-on-cash return during the hold period, with no participation in the sale proceeds.
Projected Cash-on-Cash (average return): 8%
Projected IRR: 8%
Minimum Investment: $250,000
You can divide your investment between Class A and B, as long as the total investment is $250,000.
Hold Period: 5 years
Self-Directed IRA/401K investment options available
Funding Deadline: Within 3 days of signing the PPM
Open to Accredited Investors only
WE ARE CURRENTLY 70% FULL
Investment Opportunity at a Glance
5 YEAR HOLD
PROJ RETURNS 12-13% IRR
Institutional-Level *Well-Performing* Class B+ Property in a Solid A+ Area in Atlanta MSA