799 Jodeco Cir. NW
Lilburn, GA 30047
Pref. Equity • MULTI FAMILY

Min. Invest

$10K

Target Hold

5 Yr.

Preferred Returns

8%

Investment Summary

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 Norwood, 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 invest in the acquisition of an existing Multifamily Complex located at 799 Jodeco Circle Lilburn, GA 30047 (the “Property”).

This A-Class Stock offering is available with an annual 8% preferred return. Investors can expect the 8% preferred return to be paid as a current pay. The total raise amount will be $1,500,000, the minimum investment amount from each investor will be $10,000. RealtyeVest will be paid a fee of $39,000 from the raise. Investors will earn a 8% annual yield on $1,500,000 while the sponsor will pay 8.25% on $1,461,000 net investment.


Investment Type:
Preferred Equity
Term:
60 Months
No Extensions Expected
Targeted ROI:
95% -100%
Equity Multiple:
1.95x - 2.0X
IRR:
17.0% - 20.0%

Business Plan:

This purchase is consistent with Sponsors multifamily investment strategy, which is focused on opportunistic acquisitions throughout the Southeast markets. Cornerstone was able to secure this opportunity through its strong relationships in the Atlanta market. With the current seller nearing the end of its hold period, Cornerstone was able to step in and acquire the asset. At present, the Property has all original units. The Sponsor's capital expenditure budget contemplates updating the classic units across an 18 month period. The renovations will be completed by experienced local contractors that Cornerstone’s team members have successfully employed on past projects. These are expected to be completed within the first 18 months, followed by stabilization by Year 3. In addition to upside from renovations, there is additional upside from converting the existing office unit to a market-rate unit. As a result of unlocking rental upside between these two initiatives, Cornerstone is projecting NOI to grow from in-place (T-12) $230,658 to approximately $308,754 at stabilization exit.

Exit Strategy:

Cornerstone intends to execute its capital improvement and rent increase plan over a 18-24 -month period and subsequently exit or refinance at month 60.

Why We Like This Deal:

  • Atlanta's Booming Economy - Atlanta is the capital of the Southeast, and the region continues to outgrow and outpace the nation’s best- known metropolitan regions. Norwood benefits from its strategic location along the I-85 corridor.
  • Gwinnett’s Consistent Growth - Gwinnett has experienced 146% population growth since 1990. Regulation and community opposition have limited new multifamily development, resulting in an underserved apartment market.
  • Superior Micro Location - Gwinnett County is home to 120 international HQ firms. Norwood is situated five miles south of the Sugarloaf Parkway District, which boasts 14M SF of office space and 68K+ jobs.
  • Positive Property Performance - Norwood has shown strong performance during the last 12 months with an average occupancy of 95%; and rental income increasing during the last quarter.
  • Market - Proven Value Add - The subject trails direct competitors in average effective rent by $177. A new owner can upgrade units to yield $75 premiums and an impressive 26% ROI.

Property Highlights:

  • Location - Atlanta’s Northeast corridor has exhibited the metro’s fastest population and employment growth rate during the past two decades, and also some of the fastest growing rates in the nation.
  • Barriers to Entry - Zoning restrictions, public opposition, and apartment financial metrics have hindered new multifamily development during the past 10 years. Most recently, Gwinnett County rejected a 56-acre development (proposed 300 apartments and 99 homes) on Webb Gin House Road.
  • Occupancy - Currently the property enjoys a 97% occupancy rate creating stable cash-flow.
  • Access To Traditional Atlanta Employment - Situated off I-85, Norwood offers immediate access to more than 4M SF of Class A office, national retail, and major entertainment centers. The subject is located minutes from Gwinnett’s Class A Sugarloaf Corporate District. Norwood is also proximate to more than 4M SF of office and healthcare at Central Perimeter/Pill Hill, the Tucker Office Core, CDC-Chamblee Campus, DeKalb Peachtree Airport, and major industrial parks along I-85 and I-285.


Risk Disclosures:

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.

Signup or Login to View this Deal's Financials

Signup or Login to View this Deal's Documentation

Property Summary

  • Number of Units - 76 Units
  • Year Built - 1984
  • Stories - One Story
  • Net Rentable Area - 45,504 SF
  • Average Unit Size - 599 SF

Norwood Apartments a 76 unit Cardinal Community located in northeast suburban Atlanta, Gwinnett County, Georgia. Strategically located less than 3 miles southeast of the prolific I-85 Pathway of progress, Gwinnett County is one of the fastest growing counties in the nation for more than two decades. As Atlanta maintains its position as the fourth highest nationwide in net migration, Gwinnett is first among Atlanta counties. In Gwinnett, employment announcements occur more frequently than any other county and it’s net migration represents 25% of the state’s total net migration. Built in 1984, Norwood offers an outstanding value-add opportunity in Atlanta’s Northeast Corridor, which is projected to outpace the rest of the Atlanta Metro through 2030.

COMMUNITY AMENITIES

  • Business/Leasing Office
  • Laundry Facility
  • Off-Street Parking

UNIT FEATURES

  • Attic Storage
  • Breakfast Bar/Pass-Through
  • Built-In Desks/Shelving
  • Cable & Internet Ready
  • Ceiling Fans
  • Dining Area
  • Dual-Sink Vanities
  • Laundry/Utility Room
  • One-Story Buildings
  • Patio
  • W/D Connections
  • Window Blinds

UTILITIES

SERVICE/UTILITY: SOURCE/COMPANY: PAID BY:
HVAC/Hot Water/Electric Georgia Power Resident
Water/Sewer Gwinnete County Property
Trash Removal Advanced Disposal Property

UNIT MIX SUMMARY

TYPE # UNITS % UNITS SIZE (SF)
0BR-1BA, Studio 09 13% 288 SF
1BR-1BA, Gdn 52 68% 576 SF
2BR-1BA, Gdn 11 14% 864 SF
2BR-2BA, Gdn 4 5% 864 SF
Total / Avg. 76 Units 599 SF Avg.

Property Address 799 Jodeco Cir. NW Lilburn, GA 30047
Property Type Multi Family

Market Overview

As one of Atlanta’s four core counties and the metro’s second largest, Gwinnett County has attracted much of Atlanta’s population growth and its population has doubled since 2000. Few counties in the nation have matched its phenomenal rate of growth over the past three decades.

THRIVING TECHNOLOGY BASE: Gwinnett encompasses Atlanta’s largest industrial/technology market. It includes more bioscience employees than any other Georgia county and is home to 10%+ of Atlanta’s high-tech companies, as well as seven of the region’s Top 25 high-tech employers. Its high-tech persona has long been anchored by Technology Park/Atlanta (TPA) in Peachtree Corners. The 3.8M SF TPA amasses GA’s 4th-largest technology district, with 500 companies and 7,000 employed. Travelers Insurance 154,000 SF regional HQ is TPA’s largest tenant.

SUBURBAN OFFICE GROWTH: Gwinnett’s office market is anchored by TPA and the rapidly-expanding Sugarloaf corporate district. More than 120 international HQ are based in Gwinnett, including Fortune 500 firms AGCO and RockTenn, and Fortune 1000 firm Asbury Automotive. Gwinnett’s industry base includes business giants Cisco, Merial, Sage Software, and AGCO, international corporations WIKA Instruments and Ricoh Electronics, and homegrown Optimus Solutions, Cypress Care, and Suniva. Gwinnett-based Primerica occupied its new 350,000 SF Sugarloaf HQ in 2013, where 1,800 are employed.

MAJOR ECONOMIC GROWTH: 2017: Assurant will create 335 new jobs and invest $2.2M in a technical support center in Duluth. 2017: Kaiser Permanente has opened 185K SF, $51M call center in Duluth that employs 300 and will create 800 jobs by 2020 2016: Singapore software firm Trax has picked Duluth for American HQ, creating 60 jobs 2016: Computer firm Trenton Systems moved HQ to Lawrenceville in a $500K investment 2016: Defense contractor Envistacom is opening an R&D facility in Duluth that will employ 100 2016: AmazonFresh is opening 100K SF, $7M distribution center in Duluth 2016: Ivy Creek Partners’ planned mixed-use near Mall of GA to include 76,000 SF office, 541 apartments, 42 condos, and 21-story hotel that would become Gwinnett’s tallest building. 2016: Online consignment innovator ThredUp’s new distribution/ warehouse operation in Sugarloaf will employ 300 2016: Financial tech firm InComm will invest $20M and create 120 jobs in Peachtree Corners and Suwanee

TRANSPORTATION AT HEART OF GROWTH: Traversed by Interstates 85 and 985, Gwinnett County’s road system reflects $700M in improvements during the past decade. Unique among metro counties, Gwinnett voters have since the mid-1980s approved a series of SPLOST programs. In 2013, Atlanta’s second Diverging Diamond Interchange (DDI) was completed at the I-85/Pleasant Hill Road interchange. A third DDI opened at the I-85/Jimmy Carter Boulevard interchange in 2015.

OFS FITEL EXPANSION: The 160-acre OFS site at the I-85/Jimmy Carter Boulevard interchange is a key plant of the optical fiber product manufacturer.The company recently announced plans for a $139M expansion of the plant and the addition of another facility in Carroll County. The expansion of the Norcross and carrollton facilities will create 200 new jobs as parent company, Furukawa Electric Co. Ltd. works to increase its optical fiber manufacturing capacity.

INFINITE ENERGY CENTER: Gwinnett’s state-of-the-art Infinite Energy Center campus sits at the core of the expanding Sugarloaf corporate district and represents the county’s evolution as a corporate and cultural center.This 80-acre campus includes the Gwinnett Chamber of Commerce, 13,000-seat Arena, 702-seat Performing Arts Center, 50,000 SF convention center, and Hudgens Center for the Arts. North American Properties is the frontrunner to lead a planned 2017-18 redevelopment/expansion of the 104-acre campus into an “urbanburb” area.

Start Investing Today!