This investment is open to Accredited Investors only.
MINIMUM INVESTMENT
Class A: $100,000
Class B: $50,000
Class A/B Combination: $100,000
WIRE DEADLINE
Within 3 days of signing the PPM
FOR MORE INFORMATION
Ellie Perlman
(401) 477-9804
Jeannette Robinson
jeannette@bluelake-capital.com
(210) 740-5431
Investment Requirements
Conservative Agency Loan*
Principal Balance
$62,058,362
Loan to Purchase Price
77%
Interest Rate
2.86%
Fixed or Adjustable
Fixed
Interest Only
48 months
Term
10 years
Amortizing Period (Years)
30
Debt Financing
Investment Highlights
Cap (T12)
Reversion Cap
Expense Ratio (T12)
Occupancy (as of 8/13/20)
DSCR
Purchase Price
Hold Time
Equity Required (Total)
Equity Required (LP-Class A)
Class A IRR and Avg. Annual Return
Class A Investor Equity Multiple
Equity Required (LP-Class B)
Class B Investor Average Annual Return**
Class B Investor Equity Multiple
Class B Investor Average Annual Return***
Class B Internal Rate of Return (IRR)
4.78%
5.28%
38%
91%
2.31
$80,025,000
5 years
*$19,950,000
$3,300,000
9%
1.45x
$16,650,000
7.2%-7.5%
1.77x
15.31%
14%-15%
* Subject to change **Excludes proceeds from sale
***Includes proceeds from sale
ELEMENT 41
Opportunity Overview
Blue Lake Capital has identified Element 41, a 494-unit multifamily property located in 991 Wylie Rd, Marietta, GA 30067 for acquisition (“Property”). Blue Lake Capital is extending Investors the opportunity to invest in a Element 41 Investors LLC, an entity that has been created to acquire the fee simple interest of the Property.
The Property is a 1988 institutional-quality asset that enjoys an exceptional A location, unparalleled amenity package, with ample space for tenants to spend time outside their apartment in a safe way, and an interior renovation opportunity. The business plan is to renovate and modernize the unit interiors in order to better compete with nearby properties while increasing rental rates and mitigating risk by pursuing a conservative fixed-rate agency loan of 77% LTV while capitalizing on today’s disproportionately low interest rates.
Cash flow distributions to investors will be available monthly from rental and other operation incomes of the Property to the extent after expenses, working capital reserves have been allocated. Investors will receive the cash distribution first. Blue Lake will be paid after a 7% and 9% annualized cash return are distributed to our Class A and Class B investors.
Blue Lake will hold the Property for 5 years to maximize growth in equity value from operating income. Alternatively, Blue Lake may refinance the acquisition debt in order to return most investor equity while continuing to realize returns. The increase to the net operating income is anticipated to come from an interior renovation program that has already been initiated by the current owner.
ELEMENT 41
MARRIETTA, GA
494 UNITS
5 YEAR HOLD
VALUE-ADD
PROJ RETURNS 13% IRR
Supporting Documents
This investment is open to Accredited Investors only.
RENT COMPS
SALES COMPS
FINANCIAL ANALYSIS