INVESTMENT RETURN GOALS
14%
INTERNAL RATE OF
RETURN (IRR)
5-8%
EST. CASH-ON-CASH RETURN
70%
LP Ownership after 100%
principal return
30%
GP Ownership after 100%
principal return
“ Our goal is to return your initial investment as soon as possible ”
INVESTMENT OVERVIEW
The Fund is focused on the acquisition, management, and disposition of value-add multifamily assets in order to rapidly return passive investor capital with a targeted 14% internal rate of return (IRR). The Fund’s strategy is to increase net operating income by achieving increased rents and ancillary incomes by renovating and rehabbing properties in targeted geographic locations with strong job, economic, population, and rent growth. The Fund will seek to reduce operating expenses using experienced and professional property managers with a history of successful renovation projects, stabilization, expense management, and strong occupancy rates.
By increasing the net operating income of the properties, the Fund seeks to provide a steady stream of tax-advantaged, passive income through quarterly distributions from the operating cash flow. The increased net operating income also builds equity through the appreciation of the asset and allows us to position the properties for eventual sale or refinance in order to deliver an attractive risk-adjusted return.
Property #1 – SunCourt Villas
Suncourt Villas consists of multiple single-level fourplexes built in 1984. The property is located at 5825 E. University Ave in East Mesa, adjacent to Dreamland Villa Retirement Community. These red brick buildings feature 14 – 2 bedroom units and 14 – 1 bedroom units. We spent $4.2M to purchase the 28 units (7 fourplexes), which amounts to $150,000 per door.
Each unit has a private patio and full-size washer/dryer hookups. For the interior upgrades, we installed new flooring, new stainless steel appliances, new washers and dryers, fresh paint, and fully rehabbed bathrooms and kitchens. Exterior renovations include new paint, asphalt repair, newly constructed patios, and new signage. We also built large, gated and private backyards for 16 of the 28 units which is a very difficult to find amenity in the Phoenix metro market. As of Oct 2022, we have renovated 26 of the 28 interiors.
To date, we’ve been able to raise rents over 90% for renovated units during our ownership. The increased valuation of the property enabled us to execute a successful re-finance of the property in October 2022, enabling us to lock a low rate at a time when rates are rising and return some tax-free capital to our investors.
We will look to sell this property by itself, or packaged with others in the fund, when most advantageous for our investors.
You can visit the dedicated website for this property here: https://www.suncourtmesa.com
Before & After Gallery
Property #2 – Palm Square Apartments
The second property in the 1802 Capital Fund X is Palm Square Apartments. It is an 18 unit property built in 1958 in Phoenix, AZ consisting of six studios, ten 1BR, and two 2BR apartments. 17 of the units have one bathroom and one of the 2BR units has 1.5 bathrooms. We spent $2.4M to purchase the property.
Palm Square is located just off Camelback Road and only minutes from Uptown Plaza, AJ’s Fine Foods, Restaurant Row, and more. This excellent central location also affords easy access to 7th Ave, the Camelback Light Rail Station, and the I-17 Freeway.
Many of the larger CAPEX repairs such as asphalt driveways, new curbs, exterior paint, landscaping, exterior lighting, six unit renovations, security gates, and more were conducted by the prior owners. We will continued to improve upon the property in accordance with our value-add plan, by adding additional lighting and security measures, improved landscaping to include a beautiful courtyard, and washer/dryer units in each apartment. By the end of October 2022, we will have completed all exterior upgrades and 15 of the 18 interior upgrades.
To date, we’ve been able to raise rents over 68% for renovated units during our ownership.
We were able to secure this off-market property for $133.3K per door, which represents a fantastic value and instant equity, especially considering all of the renovation work already completed. We expect to be able to sell this property by itself, or packaged with others in the fund, when most advantageous for our investors.
You can visit the dedicated website for this property here: https://www.palmsquareapts.com
Before & After Gallery
Property #3 – Sunset Mesa Apartments
Sunset Mesa is a 40 unit apartment complex located at 237 South Ashland, Mesa, AZ 85204. It is a garden style community with well manicured landscaping and covered parking on both sides of the complex. Much like our other properties in Mesa, it is in close proximity to main avenues of travel, shopping, dining, and other activities. We purchased the property for $6.1M , which amounts to $152,500 per door.
There are 13 studios, 19 one bed/one bath, and 8 two bed/one bath units. We believe this diversity will make the property attractive to many different types of potential renters and translate into high occupancy rates. To date, we’ve been able to raise rents 81% for renovated units during our ownership.
For the interior upgrades, we installed new flooring, new stainless steel appliances, new washers and dryers, fresh paint, and fully rehabbed bathrooms and kitchens. Exterior renovations included some minor roof repairs, new paint, landscaping upgrades, stairwell repairs, re-designed pool area, car ports, and new signage. By the end of October 2022, we will have completed all exterior upgrades and 28 of the 40 interior upgrades.
We expect to be able to sell this property by itself, or packaged with others in the fund, when most advantageous for our investors.
You can visit the dedicated website for this property here: https://www.sunsetmesaapts.com
Before & After Gallery
