Introducing our 7th deal with Sample Apartments, a 209-unit, Class B value add property.
Built in 1983 and is located in Arizona, where Sample manages several other properties.
The Market- complete review of the market
Phoenix ranked #1 in the US with 15.7% rent growth from May 2020 to May 2021…
Phoenix ranks #1 in the US as the fastest growing city for the 5th consecutive year and leads the country in 10-year population growth…
Personal income growth rate in Phoenix increased to 8.4% from 2019 to 2020 which tied for the 1st in the entire U.S. Average US personal income growth rate was 6.1% (BEA).
Property / Business Plan- Light value add to Class B asset
Sample is a solid Class B property and presents an excellent opportunity to increase the value by renovating 100% of the units that are still in their classic 1983 condition.
Sample plans to implement improvement to the interior look including vinyl plank flooring, stainless-steel appliances, white shaker door cabinets with modern hardware, quartz countertops, kitchen backsplash, and modern electrical and plumbing fixtures. New stackable washer / dryers will be added to each unit.
The asset will be re-branded, including signage; new exterior paint and color scheme; while adding security gates.
New amenities to be added include a dog park, fitness center and upgraded office.
Property is 100% occupied. Sample will bring in their own property management company.
Investment Structure-
Class A units: 10% preferred return
Class B units: 7% preferred return + share of profits
70/30 LP/GP profit split to 2x multiple
Greater than 2x multiple, then 50/50 split on every dollar over the 2x hurdle.
Hold Period: 3 to 5 years
Distributions and Reporting monthly
Schedule
4/20 - Deal out to investors / PPM available
5/10 - PPM signed and Funding in.
5/17 - Close
