New construction of 300+ unit multi-family property located in a rapidly growing sunbelt city. The JV capital required is ~$38M overall for a $100M total capitalization (purchase price plus leasing reserves and IR caps). Sponsor expects to close by end of the summer.
Despite being new construction, the current pricing and rapidly growing rents in the submarket presents an opportunity for value-add returns over a 3-year period with the optionality to refinance at stabilization and hold for longer term for cash flow.
As an added benefit, the Sponsor has identified a pipeline of separate opportunities with similar characteristics nearby. There is a real opportunity to forge a partnership around this strategy and deploy meaningful dollars through the end of the year thereafter.