Property Details
Below Market Rents  Below Market Occupancy  Repositioning Opportunity  NOI Growth 
Asset Profile
Value Add

Royale Apartments

Fort Walton Beach, FL

Multi-Family Property
Lurin Capital Dallas, TX
Lurin Capital
  • IRR 25.9%
  • Equity Multiple 1.9x
  • Hold Period 3Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 0%
  • Stabilized Cash on Cash 15% in Y2
  • First Distribution Jan 2021
  • Distribution Frequency Quarterly
  • Co-Investment 10%
  • Preferred Return 9%
  • Investor Profit Share 70%
  • Asset Profile Value Add
  • Loan-to-Value 74%
  • Current Occupancy 73%

About this Property

Why This Property?

Lurin Capital:

  • Off-market transaction that expands Lurin’s footprint in the Destin/Fort Walton Beach MSA
  • No new supply coming to market in the immediate area for the next 12 months and zero deliveries in the past 12 months
  • Current in-place rents are approximately 20% below market ($903/month versus an average market rent of $1,105/month)
  • Current occupancy is 73% vs an average market occupancy of 97%
  • Capital renovations totaling $25,870 per unit will generate a 18% rent premium over unrenovated units


  • Why Do You Like This Strategy?

    Lurin Capital: Lurin’s multifamily strategy is to acquire distressed and stressed Class B and C assets in favorable growth markets across the Southeast. They target specific submarkets where household incomes should support future rent growth and concentrate on the working class and young professional demographic segment, i.e. the “renter by necessity.” These are tenants that exhibit stable rent payment behavior, but cannot afford Class A rental housing and/or where purchasing a home is not yet an option. They have found the Class B and C markets to have an attractive competitive landscape for several reasons including:

    • Limited new supply
    • Strong renter demand due to affordability constraints for new products/homes, and
    • Significant number of market players are non-institutional owner-operators who are either poorly funded or lack the experience in property management including operations, maintenance and renovations


    • How Are You Mitigating Risks?

      Lurin Capital: Lurin's multi-family platform employs a straightforward investment strategy. They seek to acquire distressed and stressed assets in favorable locations at significant discounts to replacement costs, maximize value by addressing any property or operational issues through aggressive asset management and targeted value-add initiatives, and seek to capitalize on the investment opportunity once their objectives are accomplished.

      Lurin has a fully integrated platform that manages all aspects of acquisitions, construction, asset management, property management, capital markets and dispositions. This integrated platform enables the firm to effectively execute its business plans and deliver optimal performance during each stage of the value creation process. The firm’s primary focus to its investors is to generate attractive risk adjusted returns across market cycles while protecting investor capital by acquiring assets at a significant discount to replacement cost.

About this Property

Why This Property?

Lurin Capital:

  • Off-market transaction that expands Lurin’s footprint in the Destin/Fort Walton Beach MSA
  • No new supply coming to market in the immediate area for the next 12 months and zero deliveries in the past 12 months
  • Current in-place rents are approximately 20% below market ($903/month versus an average market rent of $1,105/month)
  • Current occupancy is 73% vs an average market occupancy of 97%
  • Capital renovations totaling $25,870 per unit will generate a 18% rent premium over unrenovated units


  • Why Do You Like This Strategy?

    Lurin Capital: Lurin’s multifamily strategy is to acquire distressed and stressed Class B and C assets in favorable growth markets across the Southeast. They target specific submarkets where household incomes should support future rent growth and concentrate on the working class and young professional demographic segment, i.e. the “renter by necessity.” These are tenants that exhibit stable rent payment behavior, but cannot afford Class A rental housing and/or where purchasing a home is not yet an option. They have found the Class B and C markets to have an attractive competitive landscape for several reasons including:

    • Limited new supply
    • Strong renter demand due to affordability constraints for new products/homes, and
    • Significant number of market players are non-institutional owner-operators who are either poorly funded or lack the experience in property management including operations, maintenance and renovations


    • How Are You Mitigating Risks?

      Lurin Capital: Lurin's multi-family platform employs a straightforward investment strategy. They seek to acquire distressed and stressed assets in favorable locations at significant discounts to replacement costs, maximize value by addressing any property or operational issues through aggressive asset management and targeted value-add initiatives, and seek to capitalize on the investment opportunity once their objectives are accomplished.

      Lurin has a fully integrated platform that manages all aspects of acquisitions, construction, asset management, property management, capital markets and dispositions. This integrated platform enables the firm to effectively execute its business plans and deliver optimal performance during each stage of the value creation process. The firm’s primary focus to its investors is to generate attractive risk adjusted returns across market cycles while protecting investor capital by acquiring assets at a significant discount to replacement cost.

Offered By

Lurin Capital

Lurin Capital

Dallas, TX

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Assets Under
Management

Currently
$515MM 10+ assets
Exited
$52MM less than 10 assets
Portfolio LTV
72%  
Historical
Realized Returns

Total IRR
N/R  
Equity Multiple
1.65x  
Annual Cash
N/R  
Years Of
Experience

As Principals
20+ years  
In Business
4 years  
Size
20 Staff * Dedicated investor relations
* All information is reported by Lurin Capital as of 8/31/2019.
Assets Under
Management

Currently
$515MM 10+ assets
Exited
$52MM less than 10 assets
Portfolio LTV
72%  
Historical
Returns

Total IRR
N/R  
Equity Multiple
1.65x  
Annual Cash
N/R  
Years Of
Experience

As Principals
20+ years  
In Business
4 years  
Size
20 Staff * Dedicated investor relations
* All information is reported by Lurin Capital as of 8/31/2019.

Financials

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Offering Financial

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Location Details

Fort Walton Beach, FL

Fort Walton Beach is a city in southern Okaloosa County located between Pensacola and Panama City along North Florida’s Gulf Coast. The neighboring communities of Fort Walton Beach include Mary Esther, Shalimar, Cinco Bayou, Wright, and Ocean City which together comprise the business and cultural center of the Emerald Coast.

Documents

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Offering Agreement Documents

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