RealtyeVest has a stake in all real estate investments offered in our marketplace.
RealtyeVest has obtained exclusive rights to an investment opportunity for accredited investors, REV DEACON RENTAL, LLC . a Florida limited liability company (the “Company”). The manager of the company is RealtyeVest, LLC, a Florida limited liability company (the “Manager” and organizer of the company).
The Company has been formed for the purpose of providing investors the opportunity to the SMB Partners, LLC, a Virginia limited liability company (SMB), has partnered with Newman Development Group Capital Partners (NDG), an experienced student housing developer and operator, to acquire joint venture interests in a portfolio of 53 “cottage style” detached homes purpose-built for student housing, currently known as the Deacon Rental Properties. SMB and NDG will form a joint venture to coordinate and manage the acquisition of the Property.
The Sponsor’s business plan is to incorporate institutional professional management and marketing to produce higher returns. The levered internal rate of return (IRR) and equity multiple based on a 5-year hold are 19.1% and 2.1x, respectively. The average cash on cash (CoC) return over five years is 10.0%.
The Property includes 251-beds exclusively leased to Wake Forest University (“WFU”) students. The acquisition also includes 4.42 acres of vacant land with immediate and future development potential. The Property is well maintained and within close walking distance to campus. It is 97% leased for the 2017~2018 academic year, and 60% pre-leased for 2018/2019. NDG Student Living (an affiliate of NDG Capital Partners, LLC) is one of the highest-rated student housing managers in the industry and will manage the Property.
The sponsor envisions a sale of the property in year 5. Proceeds from the sale will be used to pay Company liabilities, return investor (Class A) capital contributions, make up arrearages in Investor Preferred Returns if any, and split the remaining profits between investors and the manager in according with the Investors Subscription Agreement.
The offering materials to be reviewed and considered by investors with respect to this offering include the information described in the website content relating to this offering (as amended and supplemented through and until the closing of the transaction) and the subscription agreement relating to such securities (see the "Documents" tab). We refer to all of this information collectively as the "Property Information Package". Investors should review the Property Information Package in its entirety before investing and should consult with appropriate legal, tax, and investment advisors. Please note that RealtyeVest is not serving as your fiduciary or advisor with respect to this opportunity.
Below are certain risks associated with this investment that should be carefully reviewed prior to any investment in this opportunity:
Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected,” “forecasted,” “estimated,” “prospective,” “believes,” “expects,” "plans,” “future,” “intends,” “should,” “can,” “could,” “might,” “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements. Similarly, the financial forecasts contained herein and in any other offering materials are based on numerous assumptions. Although these assumptions are believed to be reasonable, they are all subject to uncertainty. Non-Transferability of Notes: The transferability of the Company's Notes is restricted both by the subscription agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer the Notes. There is also no public market for the Notes and none is expected to be available in the future. Moreover, although there is a defined redemption date for the preferred equity investment in the Fund, an extension option may be exercised and in any event, there can be no assurance that the investment will be liquidated at or promptly after such maturity date (as it may be extended). Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.
Real Estate Market Risk: Investments related to real estate are subject to market valuation risks that may be caused by changing economic and local market conditions such as local real estate market conditions, prevailing interest rates, the rate of unemployment, the level of consumer confidence, the value of the U.S. dollar, energy prices, changes in consumer spending, the number of personal bankruptcies, disruptions in the credit markets and other factors. Such conditions are beyond the control of the Company and of the Fund. Real estate markets are affected by many factors, such as general economic conditions, supply and demand for real estate investments, interest rates, the availability of financing, and other factors, all of which are beyond the control of both the Company and the Fund.
Borrower Credit Risk: The Company’s obligation to make payments on a Note will not be guaranteed for the length of the term corresponding to the borrower’s loan. The Company (and thus investors) will be relying on the borrower for the execution of its business plan in a way that enables the sponsor to repay the principal of the corresponding borrower loan. The borrower may not have a significant record of performance and may be unable to sell or refinance the underlying property in a way that enables the borrower to fulfill its obligations under the corresponding borrower loan. The borrower loan is being made with respect to a property that does not generally meet the financing criteria for conventional mortgages from institutional sources. Credit risk is inherent in the mortgage lending industry, and there can be no assurance that the creditworthiness of the borrower will be sufficient to assure the full repayment of the underlying borrower loan. The Company does not guarantee payment of the Notes or the corresponding borrower loan, and the Notes are not obligations of our borrower.
Mission Bay Investments, LLC, a Virginia limited liability company (MBI) is a boutique real estate investment firm that was founded to acquire and manage value-added real estate investments on behalf of its principals and accredited investor partners (High Net worth Individuals, Family Offices and Private Equity). MBI invests in properties that are well-located with sound physical and economic fundamentals, properties that have the ability to generate attractive levels of distributable cash, and properties to which MBI can add value by executing recapitalization or repositioning strategies.
Founders and Principals. Daniel Woodford and Charles Triska are close associates and the Key Principals of MBI. They met in 2009 at Headquarters, United States Air Force (HQ USAF), Pentagon, Washington DC. Since 2009 they have collaborated on numerous real estate projects before deciding to unite their skills and resources into a business relationship. Each partner brings integrity and strong management credentials to MBI that help ensure success. Both have successfully managed several LLCs and large military projects in their prior careers.
Daniel Woodford recently retired from the United States Air Force and most currently served in the USAF’s Directorate of Test and Evaluation (USAF/TE) office where he oversaw the test and evaluation (T&E) of multiple multi-billion-dollar space and missile acquisition programs. In this highly-selective position, he contributed his space systems and management expertise to several teams that developed advanced space systems. These teams wrote the complex documentation required by Congress and senior military leaders for multi-billion-dollar acquisition programs such as the Global Positioning System (GPS) constellation of satellites. Before assuming his HQ USAF position, Daniel was a Space Operations Officer for multiple acquisition agencies, to include the Space and Missile System Center at Los Angeles Air Force Base, CA. He holds a Bachelor’s Degree in Criminology from the University of Oklahoma, and a Master’s Degree in Human Resources Management from Webster University. Upon retirement from the Air Force on April 1, 2014 Daniel assumed his role in MBI as Managing Director full time. Daniel has also recently completed all academic requirements to earn his second Master’s Degree in Real Estate Development from George Mason University.
Synplex Investors is a full-service real estate investment company specializing on Multi-Family and Commercial investments in emerging markets throughout the United States. Our vision Synplex Investors strives to be the premier investment owner, manager and developer by utilizing innovative strategies, relationships, best practices and executions along with the highest standards of integrity. Synplex Investors is committed to working for our investors, partners, and clients to develop an investment strategy that identifies the investment potential of existing communities and determine the best way to enhance them through exceptional bottom line performance. We purchase all types of multi-family properties including mid-rise, high-rise garden apartments and condominium conversions. Our focus when acquiring a property is prime location, quality construction, diversification, and tenant longevity.
Michael has extensive experience as a business executive and principal consultant for GMAC Real Estate Division, Price Waterhouse Coopers, American International Group, and ADP Brokerage Division focusing in strategic business, sales and marketing planning, real estate brokering and wholesaling, merger and acquisition, real estate and asset management, insurance, human resource, and maintenance and construction. Michael received a Bachelor’s Degree in Business from Buffalo State University College; is certified in Human Resources Management; licensed Life and Health Insurance in New Jersey; a licensed Real Estate Broker in New Jersey; and a member for New Jersey and Pennsylvania REIA Chapters.
This student housing portfolio in Winston-Salem, NC offers a unique opportunity for a significant cash flow Investment, located within walking distance of the Wake Forest University campus. 251 beds are spread among 65 fully furnished individual 3 & 4 bedroom homes as well as a leasing office. The homes have an average age of 5 years and range from 1,800 to 2,100 square feet with amenities designed for superior student living experience, including spacious porches and luscious landscaping, laundry facilities in every house, an abundant amount of off-street parking and the leasing and maintenance building located in the neighborhood. 98% of the leases are already in place for the 2017-2018 year, guaranteeing a stabilized asset through June 2018.
|Rentable Square Feet||125,500 sf|
|No. of Buildings:||53|
|No. of Units:||65|
|No. of Stories:||1&2|
|Additional Land:||4.42 Acres|
|Year Built:||(6) Buildings 1950’s (47) Buildings 2006-2016|
|Construction:||Wood Framed with Vinyl Siding Finish|
|Utilities:||Individual Electric Metered|
|Parking Spaces||251 Plus|
|Unit Mix:||Unit Type:|
Wake Forest University students make up the entirety of the tenant pool, and with projected growth to the university, the investment becomes an attractive opportunity for years to come. With the conservative assumption in place that application rates continue at 4.4% and admission and enrollment rates remain constant at 29% and 33%.
|Property Name:||Wake Forest Student Housing|
|Property Type||Student Housing|
|# of Bedrooms||127|
Winston-Salem saw close to 10% employment growth within the past five years. Winston-Salem's top employment industries are healthcare and education, thanks partially to Wake Forest, a private research university with around 7,500 students. Wake Forest alone, in between the university and its medical center, employs over 15,000 people across the metro. Novant Health has an additional 14,000 workers within the Triad (consisting of Greensboro, Winston-Salem, and High-Point). Finance and banking are also key drivers for employment, and the Business District Submarket houses large banking institutions such as BB&T and Wells Fargo. This submarket saw the largest population growth by percentage within the metro, at 7% from 2010-15. The Business District is the second-largest submarket in terms of apartment inventory, following Downtown Winston-Salem, and the majority of newer development in the market has been concentrated here.
Downtown Winston-Salem and the Business District Submarket have mirrored each other in terms of vacancy; both historically average around 9.0%. The Business District Submarket, at 8.9%, surrounds the Sunnyside neighborhood and the intersection of I-40 and Highway 52. This submarket had the most deliveries over the past year, at 670 units, accounting for 10% of its total inventory. The Residences at the R.J. Reynolds Building opened in May 2016 within this submarket and has been met with high demand, leasing an average of 20 units/month. The Downtown Submarket sits above the Business District, encompassing Williamsburg Square. It has a historical vacancy of 9.0% and has not seen any new development since the beginning of 2015.
The Innovation Quarter, the highlight of new development in the Downtown Winston-Salem Submarket, serves as a catalyst for the innovation economy and currently contains 1.8 million SF of office, laboratory, and educational space. When fully built out, this development could contain up to six million SF of commercial space and produce 20,000 jobs. This submarket's favorable demographics include a high concentration of 20-34 -years-old (22%) and almost half of the population rents, spurring multifamily development. Within a mile of the Innovation Quarter, there have been four new communities constructed within the last two years, totaling 590 units.
Herbalife has also chosen to relocate and expand its Information Services group and other operations to its existing facility in Winston-Salem. This expansion will create 300 new jobs over the next two years with salaries ranging from $59,000-$63,000, which is higher than the market household income of $49,000. Along with Herbalife, Corning has committed to adding around 100 jobs in the market in return for economic incentives. Corning average salaries for new positions will be around $58,000, topping Catawba and Forsyth counties averages of $40,000 and $50,000.