Palladian at Jubilee Ridge Offering On RealCrowd

The real estate crowdfunding platform RealCrowd announced a new offering for a build-for-rent community in the Mobile, Alabama, suburb of Daphne.

Palladian at Jubilee Ridge is a Class A build-for-rent asset featuring 114 multifamily units. The property was purchased for an off-market discount of $2 million below the original purchase price. The units are split between 1,555-square-foot and 2,007-square-foot floor plans with attached garages, and the community comes with amenities for the tenants. 

Palladian is in Baldwin County, Alabama’s fastest-growing county. The county’s 55% increase in population between 2000-2019 is more than triple the national average. The boom in migration has been fueled by its location just 30 minutes from Florida’s panhandle and economic growth. Over the last five years, a job-growth rate of 15.4% has led to the above-national average median household income of $98,000. The area’s strong demographics combined with housing demand will allow for project operator LURIN Equity Partners to increase rents to match the market average. 

LURIN is planning a light renovation package for the interior and exterior of each unit as well as community amenities. Each unit’s interior will receive new countertops, tile backsplashes, sink and faucet fixtures and full paint jobs. Each unit’s exterior will receive full exterior paint jobs, renovations to the lighting, landscaping, fencing and repair or replacement of HVAC units. 

Amenities improvements include new pool furniture, resurfaced pool deck, an outdoor kitchen in the pool area, an upgraded leasing office and a renovated dog park. LURIN has allocated $1.9 million toward upgrades, paving the way for an average rental increase of $518 a unit per month.

The new owners plan to push rent immediately upon takeover, allowing for cash flow distributions to investors toward the end of year one.

• Minimum Investment: $50,000
• Target internal rate of return (IRR): 28.1%
• Target equity multiple: 2.5x
• Target cash yield: 0% year one, 6.28% stabilized cash year three
• Target investment term: five years

Owner and operator LURIN Equity Partners is a real estate investment firm headquartered in Dallas, Texas. The firm specializes in the acquisition of poorly managed and distressed Class A through C multifamily assets with significant value-add potential. LURIN seeks assets that can be bought at a significant discount to replacement cost and add value through streamlining operations and targeted renovations. 

The company manages 8,004 units valued at more than $1.7 billion. Over the course of the company’s existence, it’s exited over 20 assets for a value of $813 million with an equity multiple of 2.1x and a total IRR of 41%. 

View details on RealCrowd offerings

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Photo: Courtesy of RealCrowd