Houston Multi-Family Equity I

Annualized return3

Term3

59 months

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Status

Closed

Recently funded

Accepting $10,000 - $1,000,000 investments

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Accepting $10,000 - $1,000,000 investments

Overview

Read about why there is no place like Houston here

Important Notes

This offering is not available to pension plans, defined benefit plans, defined contribution plans, retirement plans, IRAs, 401(k) and 403(b) funds, and funds comprised of these plans and funds.

Highlights

Proven business plan

Desirable location

Attractive cost basis

Experienced team

The seller of the portfolio spent approximately $7.2M on renovations and as a result saw increased rents in every unit type that was renovated. Based on this proven strategy, the new sponsor of the portfolio will spend another $8.9M to upgrade 664 units. The renovation plan is expected to allow the sponsor to increase rents at each property to bridge the gap in rents compared to the comparable rentals.
According to CoStar, the submarkets consist of a deep pool of renters-by-necessity, which continues to drive demand for affordable housing in the area as the cost of homeownership is increasing. In the submarkets where the properties are located, median home sale prices are up 22% compared to last year which is keeping rental demand strong as most can not afford to buy. CoStar expects vacancy to remain relatively stable in the midst of supply and demand-side pressures from the pandemic, and rent growth is expected to average 2.3 - 2.4% annually over the next five years.
In comparison to recent comparable sales in the submarkets where the properties are located, the multi-family complexes were acquired for less than their direct market peers and for less than their “as-is” appraised value.
The sponsor, July Residential, is a New York based real estate investment firm which focuses primarily on workforce housing in high-growth markets, with the goal of creating value through property improvements and in-house management. July Residential co-founders Avihai Daniell, LV Lavalli, and Isaac Pinto, have extensive experience in multi-family property acquisition, development, and management through previous business ventures. July Residential is an affiliate of the El-Ad Group, which is a real estate development and investment company founded in 1992 with over $2B in AUM.
Element National Management (Element), founded by LV Lavallii, as well as El-Ad Group, is a full-service apartment management company, and will manage the properties. Element currently employs approximately 50 employees, and operates in 4 states, and has provided management services to over 20,000 units across the nation.

Essentials

Please refer to the Investment Memorandum in the Docs section for more details about this offering.

Capital structure

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Cash flow

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Assets

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Returns & Management fees

Ann'l management fee

2.5%

Target ann'l net return

15% - 17%

Inv Share in excess profits

100%

Target equity multiple

1.9x - 2.0x

Target ann'l cash yield

~7%

Schedule

Payment schedule

Quarterly + event based

Prefunded

Yes

Target term

5 years

Structure

Tax document

K-1

Offering structure

SPV

Expenses

First year expense

$150

Annual Flat Expense

$70

Docs

Content

Investing in private markets and alternatives, such as this offering, is speculative and involves a risk of loss, and those investors who cannot afford to lose their entire investment should not invest. Returns are not guaranteed.

"Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

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³ "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

⁴ Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

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