Crowdfunding platform CrowdStreet has a new offering for retail investors looking to fund a new value-add real estate opportunity. The new offering is Fuse at Park Row, a 318-unit multifamily property with an attractive targeted internal rate of return (IRR) of 15.0%.
Fuse at Park Row is being acquired for $58.8 million, with the deal sponsor planning to raise $19.5 million in equity and contribute $2.9 million to cover the acquisition.
Investors can fund up to $8.5 million in the Class A multifamily apartment complex in Houston, Texas, built less than two miles from the ConocoPhillips COP World Headquarters, BP plc's BP U.S. Headquarters and Royal Dutch Shell plc’s RDSA U.S. Headquarters.
Investment Highlights: Built in 1998, Fuse at Park Row is a Class A garden-style apartment community. The property has 15 three-story Hardiplank, stucco and stone apartment buildings, as well as a recently remodeled clubhouse, fitness center and resort-style pool.
All apartment building roofs were renovated in 2015, and the exteriors of all buildings were freshly painted in 2016. The deal sponsor has agreed to buy the property for $58.8 million ($185,000 per unit) with a value-add program involving an all-in cost of $64.5 million ($202,865 per unit) to remodel 153 units.
- Minimum investment: $25,000
- Target IRR: 15.0%
- Target annual cash yield: 10.8%
- Target equity multiple: 1.8x
- Target investment term: 5 years
Deal Sponsor: Keener Investments is a Houston-based, fully integrated real estate investment firm. The company focuses on purchasing and refurbishing multifamily assets (apartment communities) that can benefit from its proven value-add strategy.
So far, Keener Management has been recognized as one of the Best Places to Work Multifamily for the past two years and ranked #9 and #12 nationally, respectively, in 2020 and 2021. The company has over $243.9 million total portfolio activity, with $225.6 million of assets under management (AUM).
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Photo: Courtesy of CrowdStreet
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