Property

Summerhill Apartments Phoenix, AZ

Property
Type
Multi-Family
Investment Type
Property
Asset Profile
Value Add
Min. Investment
$10K
Estimated Hold
2Y
Target Return (IRR)
17.2%
Target Annual Cash
7%
Target Equity Multiple
1.4x
This deal is oversubscribed
 

Offered By

Sterling Real Estate Holdings Elite Sponsor

Phoenix, AZ

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Assets Under
Management

Currently
$1B
Exited
$2.8B
Portfolio LTV
50%
Historical
Realized Returns

Total IRR
20%
Equity Multiple
2x
Annual Cash
10%
Years Of
Experience

As Principals
30+ years
In Business
2 years
Size
25 Staff
* All information is reported by Sterling Real Estate Holdings as of 7/11/2017.
 

About this Property

Acquire an off-market 130-unit garden-style apartment community for $9,300,000 or $71,500/unit. The property, which has been owned and self-managed by the same ownership group for 5 years, is currently 98% occupied and is undercapitalized and undermanaged. The seller replaced significant portions of the infrastructure such as new cooling system, unit interiors and windows. There is a significant opportunity to reposition the property to maximize its value. It is the ideal acquisition profile target for Sterling Real Estate Holdings. The existing cap rate is 5.00% based on historical income and normalized expenses. There is embedded value in under market rents and a premium to reposition the property.

The property was not broadly marketed for sale, and the pricing was negotiated directly with the seller.

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Key Points

  • Proven Sponsor in the Greater Phoenix Market
  • 17.2% IRR
  • 24 month hold period
  • 10% Sponsor Co-Invest (for alignment of incentives)
  • Ability to re-fi the property in the event ownership wishes to hold the asset for longer time period, based on prevailing market conditions
 

Financials

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Location Details

Phoenix, AZ

Summerhill sits on 2.6 acres over 8 buildings in a rapidly-improving sub-market. Built in 1970, the asset benefits from its location near the convergence of SR-51 (Piestewa Freeway), Loop 202 (Red Mountain Freeway) and Interstate 10. It is approximately one block northeast of the intersection of East Thomas Road and State Route 51.

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Documents

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Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

The first projected distribution is scheduled for March 2018.

Distributions are scheduled to go out on a quarterly basis.

Yes, non-US residents are welcome to apply.

RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

RealCrowd offerings are open to US-based accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.

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Have a Question?

Send Sterling Real Estate Holdings and/or RealCrowd a message. If you have a question about this offering ask Sterling Real Estate Holdings. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

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In the meantime, please review the offering documents and financials.

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