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Property Details

  • 158 Unit Build to Rent Development
  • Fastest Growing County in Alabama since 2010
  • Construction Moratorium to limit new supply to the market – initiated and enforced right after project approval
  • End of 36 months Mezzanine Debt and Preferred Equity will be refinanced out of deal

Investment Highlights

The financial returns from investing in The Charleston will differ depending on when you invest your dollars, with each phase providing a projected return on investment.

The Story Behind the Opportunity

  • Looking at BTR projects in Southeast
  • DR Horton recently developed BTR project in Foley one of the markets on our radar
  • Doubled down on Foley, we already had a relationship with the seller
  • Met with city officials and they loved our idea for a BTR development
  • Building moratorium in place that will limit further supply from being added to the market

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Facts About Foley, AL

  • Baldwin County (where Foley, AL is located) has been the fastest growing county in AL since 2010 (source: U.S. Census Bureau)

  • 52% growth in total assessed property values from 2012-2020

  • 69% of all assessed property value in Baldwin County is located within municipal limits

  • 55.2% of all assessed property value within municipal limits is located in Gulf Shores and Orange Beach.

Unit Mix

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How To Invest

Although this investment opportunity is currently closed, we encourage you to subscribe to our weekly newsletter to stay informed about future opportunities. Want to understand if you qualify for an investment opportunity? Feel free to schedule a no obligation call or sit in on one of our webinars. Feel free to visit our Portfolio page or Read our Blogs.

Proposed Capital Stack

The proposed capital stack requires minimum equity contribution from limited partners.

  • 6% senior debt up to 65% LTC
  • 15% mezzanine debt up to 85% LTC
  • 16-18% preferred equity up to 95% LTC
  • Preferred equity to collateralized
  • 5% GP equity contribution up to 100% LTC

Returns-on-Investment

The financial returns from investing in The Charleston will differ depending on when you invest your dollars,
with each phase providing a projected return on investment.

Next Steps

The Charleston project is currently open to limited equity investment participation until the capital needs are met. Contact us to find out more information.

FAQ

Here are the most common questions we receive around this opportunity. Don’t see your question?
Just send us a question below or schedule some time to chat.

We have been able to provide early exits for our LPs in the past without any problem but we provide no guarantees. We recommend that when making your decision, you assume you will hold for the 5 year period.

Fluctuating Interest rates are definitely something we’re keeping in mind and rate caps are a potential solution to the problem. We also make sure to have enough in interest reserves to handle increasing rates and plan on converting our floating rate construction loan to fixed rate agency debt upon stabilization. But the best solution for this is our relationship with our lenders and our ability to work with them to come to a solution that works for everyone. We don’t want to foreclose on the property and the bank does not want the headache of managing an unfinished development so I know that we will work together on a solution that benefits all. For labor and material pricing, we have a 15% $3M vertical construction contingency and we buy our materials and labor in bulk for better pricing.

We do plan on refinancing out of the bridge debt for the horizontal infrastructure and may refinance additional investor capital out of the opportunity once we have stabilized the development. This way we return investor capital tax free before we hold until the 10 year period. We did not include refinances in our underwriting projections and do not recommend you take refinances into account when making your decision. Any decisions we make we will keep our passive investors’ best interests at heart.

Our exit strategy is to hold the investment for 5 years. At this point we will either sell or in order to establish a Legacy as is our mission, buy out existing investors who no longer wish to hold to see the profitable cash flow and instead want a capital event, and hold for a longer period of time.

Still have questions?

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