Terrace at Butler Direct Investment

Direct Investments, Opportunities

Alternative Investors Mastermind Postcast

Hosted by Jack Krupey

The JKAM team is excited to share our newest investment opportunity Terrace at Butler, a 132 Unit Multifamily value add project in the #5 Best Small City in the U.S., Greenville, SC.  

 

Our Operating Partner has extensive institutional experience structuring, closing and managing $6 billion+ in real estate assets across the country. They are local to the Greenville area and recently took a similar property 5 miles away full cycle resulting in over a 50% IRR.  Terrace at Bulter is an off market acquisition from a large institution that under-managed the property leaving a significant opportunity for our operating partner to add value. 

Key Investment Details

Preferred Return: 8%  | Projected IRR: 15-18%
Projected Equity Multiple: 1.98x | Projected Hold Period: 5 yrs

Investment Highlights

Investment Overview:

  • Operator Experience – The operating team has post-graduate real estate analysis from MIT, structured and closed over $1 billion of real estate transactions on behalf of pension funds, endowments and high-net worth investors. The team has underwritten over $6 billion of transactions of multi family, retail, office, and industrial assets across the country for firms such as J.P. Morgan’s Global Real Assets. They have been operating and managing their own assets since 2016. 
  • Local Knowledge – Operator recently took a similar property 5 miles away full cycle for over a 50% IRR and believe Terrace at Butler is a more compelling opportunity due to location and value upside.
  • Low-Leverage – All in purchase and renovation is 69% Loan to Cost
  • Interior Renovation Plan– Renovate 71 classic units and 61 partially renovated units to new premium level. The previous owner renovated 61 units though it was below market standard, leaving the opportunity to upgrade to premium appliances, floors, fixtures etc.  
  • No Major Deferred Maintenance– New roofs on all buildings in 2020 and parking lot seal and stripe in 2020 
  • Tax Advantaged  – Year 1 Depreciation will be significant.
  • Managed Downside Risk – Sensitivity analysis done taking into account interest rate risk, rental rate growth, cap rates, vacancy rates. 
  • Rent Growth – Current rents ($1,057) are below market rents ($1,279) and post renovation rents at $1,479. This are also conservative assumptions and with the local knowledge through previous property 5 miles away.  

Market Overview Greenville, SC:

  • #5 Best small city in the United States in 2021
  • Ranked #42  in the ranking of best performing cities in 2020 by Milken Institute
  • Terrace at Butler is located in the South Greenville market that has experienced phenomenal rent growth and has rent projections of +11%
  • Property is ideally located in the “Industry Triangle” next to I-385 and close to I-85 making it a 20 minute drive to the area’s major employers and 66k+ jobs. 
  • The 1 mile radius includes $87K average household income (HHI) and 64% white collar employment. 

 

Make A Reservationn

Steps to Invest:

  1. Make A Reservation
  2. Schedule A Call
  3. Verify Accreditation
  4. Review & E-sign Docs
  5. Fund

Investor Timeline:

  1. Reservation Deadline June, 25th
  2. Funding Deadline June,  30th
  3. This offering has limited space and will be on a first come first serve basis.