PRESERVE AT GREISON TRAIL NEWNAN, GEORGIA€¦ · Legacy Capital Partners (Legacy) has created LAC...
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Legacy Capital Partners (Legacy) has created LAC Greison Trail LLC (Company) to provide accredited investors the opportunity to invest in Preserve at Greison Trail (Greison Trail), a 235-unit garden style apartment complex in Newnan, GA. Greison Trail was built in 2008 and represents an opportunity to invest in a well-located and well-occupied (94%+) apartment property that will provide stable in-place cash flow and value appreciation through increased rental rates tied to unit-interior renovations. Legacy entered into a joint venture with Cocke Finkelstein, Inc (CFI) (www.cockefinkelstein. com) and acquired Greison Trail on September 3, 2015. is represents the fourth joint venture between Legacy and CFI. e purchase price was $25,900,000 and the total cost, including a $725,000 renovation budget, contingencies and closing costs, was $27,550,000. is represents a purchase price of $110,212/unit ($114/sf) and a total cost of $117,234/unit ($121/sf) which compare favorably to recent sales and the cost of new construction. e acquisition and renovation budget was capitalized with a mortgage loan in the amount of $18,600,000 and $8,950,000 of equity. Legacy invested $7,160,000 and CFI invested $1,790,000. CFLane, a CFI affiliate, will be the property manager. e investment strategy is to aggressively manage the asset to increase rents in line with the rental rates currently being achieved in the market. Additionally, the interiors of approximately half of the units will be upgraded to include granite counters in the kitchen and baths, faux hardwood flooring and 2” blinds. e balance of the units will be upgraded to include faux hardwood flooring. e interior renovations will be made as units become available and are expected to be completed over the first 24 months. e proposed improvements and CFLane’s professional property management are expected to generate the desired financial performance. e Company is offering 33 Membership Units for an aggregate purchase price of $1,650,000, or $50,000 per Membership Unit. e minimum investment is two (2) Membership Units for an aggregate purchase price of $100,000. e Manager may, in its sole discretion, accept investments for less than two (2) Membership Units. Investors will receive an 8% preferred return on their invested capital paid from net cash flow, refinance proceeds or sale proceeds. After the preferred return is paid current, investors will receive 80% of excess net cash flow. Once the preferred return is paid current and 100% of the investors capital has been returned, the investors’ will receive 80% of excess refinance and/or sale proceeds. To request a Confidential Private Placement Memorandum please contact us at [email protected] or 216-381-2303. PRIVATE & CONFIDENTIAL HIGHLIGHTS RETURNS PRESERVE AT GREISON TRAIL NEWNAN, GEORGIA THE PRESERVE AT GREISON TRAIL ӹ Purchase price below recent sale comp and total cost below replacement cost ӹ Newnan and neighboring Peachtree City have no land zoned for new multifamily and are denying rezoning requests ӹ Strong fundamentals driving increasing occupancy and rental rates in the market ӹ One of the newest communities in the area with lower rents than the market creating a strong value proposition ӹ Strategically located near the region’s major employers and economic drivers ӹ Interior renovation program and professional property management is expected to increase rental rates to market ӹ Existing resident base is strong with low rent-to-income ratios indicating increased rental rates after unit improvements can be afforded ӹ Joint venture partner is highly experienced local owner/operator THE PRESERVE AT GREISON TRAIL The information contained herein is not a guarantee of performance WWW.LCP1.COM ӹ e returns below assume 1) a refinance and partial return of capital after two years and 2) a sale at $136,500/unit after 5 years ӹ e cash yield is projected to be a minimum of 8.0% annually ӹ An initial investment of $100,000 is projected to generate a total return of $167,800 ӹ 50%+ of the return on investment is projected to come from cash flow
Transcript of PRESERVE AT GREISON TRAIL NEWNAN, GEORGIA€¦ · Legacy Capital Partners (Legacy) has created LAC...
Legacy Capital Partners (Legacy) has created LAC Greison Trail LLC (Company) to provide accredited investors the opportunity to invest in Preserve at Greison Trail (Greison Trail), a 235-unit garden style apartment complex in Newnan, GA. Greison Trail was built in 2008 and represents an opportunity to invest in a well-located and well-occupied (94%+) apartment property that will provide stable in-place cash flow and value appreciation through increased rental rates tied to unit-interior renovations.Legacy entered into a joint venture with Cocke Finkelstein, Inc (CFI) (www.cockefinkelstein.com) and acquired Greison Trail on September 3, 2015. This represents the fourth joint venture between Legacy and CFI. The purchase price was $25,900,000 and the total cost, including a $725,000 renovation budget, contingencies and closing costs, was $27,550,000. This represents a purchase price of $110,212/unit ($114/sf) and a total cost of $117,234/unit ($121/sf) which compare favorably to recent sales and the cost of new construction. The acquisition and renovation budget was capitalized with a mortgage loan in the amount of $18,600,000 and $8,950,000 of equity. Legacy invested $7,160,000 and CFI invested $1,790,000. CFLane, a CFI affiliate, will be the property manager. The investment strategy is to aggressively manage the asset to increase rents in line with the rental rates currently being achieved in the market. Additionally, the interiors of approximately half of the units will be upgraded to include granite counters in the kitchen and baths, faux hardwood flooring and 2” blinds. The balance of the units will be upgraded to include faux hardwood flooring. The interior renovations will be made as units become available and are expected to be completed over the first 24 months. The proposed improvements and CFLane’s professional property management are expected to generate the desired financial performance.The Company is offering 33 Membership Units for an aggregate purchase price of $1,650,000, or $50,000 per Membership Unit. The minimum investment is two (2) Membership Units for an aggregate purchase price of $100,000. The Manager may, in its sole discretion, accept investments for less than two (2) Membership Units. Investors will receive an 8% preferred return on their invested capital paid from net cash flow, refinance proceeds or sale proceeds. After the preferred return is paid current, investors will receive 80% of excess net cash flow. Once the preferred return is paid current and 100% of the investors capital has been returned, the investors’ will receive 80% of excess refinance and/or sale proceeds. To request a Confidential Private Placement Memorandum please contact us at [email protected] or 216-381-2303.
P R I V A T E & C O N F I D E N T I A L
HIGHLIGHTS
R E T U R N S
PRESERVE AT GREISON TRAIL NEWNAN, GEORGIA
THE PRESERVE AT GREISON TRAIL
ӹ Purchase price below recent sale comp and total cost below replacement cost
ӹ Newnan and neighboring Peachtree City have no land zoned for new multifamily and are denying rezoning requests
ӹ Strong fundamentals driving increasing occupancy and rental rates in the market
ӹ One of the newest communities in the area with lower rents than the market creating a strong value proposition
ӹ Strategically located near the region’s major employers and economic drivers
ӹ Interior renovation program and professional property management is expected to increase rental rates to market
ӹ Existing resident base is strong with low rent-to-income ratios indicating increased rental rates after unit improvements can be afforded
ӹ Joint venture partner is highly experienced local owner/operator
THE PRESERVE AT GREISON TRAIL
The information contained herein is not a guarantee of per formanceW W W . L C P 1 . C O M
ӹ The returns below assume 1) a refinance and partial return of capital after two years and 2) a sale at $136,500/unit after 5 years
ӹ The cash yield is projected to be a minimum of 8.0% annually
ӹ An initial investment of $100,000 is projected to generate a total return of $167,800
ӹ 50%+ of the return on investment is projected to come from cash flow
