The latest real estate investment offering on RealCrowd’s crowdfunding platform is for Palisades at Pleasant Crossing, which offers a target internal rate of return (IRR) of 28.45% over the 3-year target investment term.
The offering is for an equity investment in a 396-unit multifamily property in Northwest Arkansas with a strong value-add opportunity. The property has consistently delivered robust cash flow since its construction was completed in 2017 and currently maintains 95% occupancy.
The sponsor has been tracking the Northwest Arkansas market for a little over 2 years, and its research indicates that the market possesses numerous key indicators that drive investor demand and multifamily valuations including rent growth, high occupancy, positive net absorption, a diverse economic environment and strong population growth.
Investment Highlights: Most value-add multifamily opportunities involve periods of low occupancy and potentially negative cash flow while the units are being renovated. However, the sponsor anticipates being able to perform most interior renovations while tenants are still occupying the units, allowing occupancy to remain stable.
- Minimum investment: $50,000
- Target IRR: 28.45%
- Target equity multiple: 2.02x
- Preferred return: 9%
- Target investment term: 3 years
View more details on RealCrowd and the platform’s latest offerings.
Deal Sponsor: The opportunity is being offered by LURIN, a real estate investment firm based out of Dallas, Texas. The company currently has approximately $1.3 billion in assets under management across more than 30 properties. To date, the company’s historical realized returns have netted a total IRR of 27% and a 2x equity multiple.
Photo: courtesy of RealCrowd
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