Property Details
Repeat Sponsor  Below Market Rents  Repositioning Opportunity 
Asset Profile
Value Add

ApexOne Multifamily Fund III, LP

Nationwide

Multi-Family Fund
ApexOne Investment Partners Houston, TX
ApexOne Investment Partners
Targets
  • IRR 13-15%
  • Equity Multiple 1.9x
  • Hold Period 3-5Y
  • Minimum Investment $100K
  • Year 1 Cash on Cash 7-9%
  • Stabilized Cash on Cash 7-9% in Y2
  • First Distribution Mar 2019
  • Distribution Frequency Monthly
  • Co-Investment More than 1%
  • Preferred Return 8%
  • Investor Profit Share 80%
  • Asset Profile Value Add
  • Loan-to-Value 65%
  • Current Occupancy N/R

About this Fund

The ApexOne Multifamily Fund III will concentrate primarily on investing in value-added workforce housing across the United States and secondarily, in student housing at non-primary public colleges and universities to achieve the projected 13%-15% net returns to the investors. This projection is based on the track record and experience of the manager in both segments.

Workforce Housing Thesis:

The expanding supply and demand imbalance between the number of affordable workforce apartments and the growing USA workforce is favorable for value-added investment.

  • The size of the workforce in the United States will continue to remain at approximately 40% of the United States labor pool.
  • Wages in the workforce sector are low, stagnant, and lagging the economy, in spite of low US unemployment.
  • Record high, and continually rising construction costs, regulatory hurdles, and community activism create barriers to the development of new affordable workforce housing.
  • Rehabilitation and environmental enhancements to existing workforce communities is the most environmentally and economically sound solution to the expanding supply imbalance.

Secondary Public College and University Thesis:

Student housing tends to not be as volatile as other commercial real estate asset classes and performs well in a downturn which is something capital providers around the globe find compelling. Acquiring and enhancing housing at non-primary colleges and universities compliments our workforce housing strategy through both geographic and economic diversification. These schools and universities provide a high quality education at a lower cost for students from workforce families.

  • Cap rates and returns on investment in student housing at secondary schools are generally higher than market rate opportunities which is accretive to the funds balance and performance.
  • The rising cost of a secondary education, especially at private and primary state sponsored schools, is a concern of the workforce class.
  • The competition to gain admission to the larger state sponsored schools (and reasonably priced private institutions) will continue to increase.
  • The cost of construction of purpose-built student housing, and the environmental impact of new construction, will continue to increase.
  • Providing affordable, quality, student housing at secondary public schools in key locations is essential to the nations educational efforts.

Key Points

  • Highly experienced Sponsor with 150 years of combined senior leadership
  • Geographically diversified portfolio of 20 +/- workforce and student housing assets
  • Monthly or quarterly distributions of cash flow to investors at their option
  • 8% preferred return with 13-15% projected total IRR to investors
  • Overall fund leverage projected to be 60-65% at full deployment of capital

Offered By

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Assets Under
Management

Currently
$586.6MM 10+ assets
Exited
$298.9MM 10+ assets
Portfolio LTV
67.3%  
Historical
Realized Returns

Total IRR
17.7%  
Equity Multiple
2.28x  
Annual Cash
10.8%  
Years Of
Experience

As Principals
30+ years  
In Business
7 years  
Size
9 Staff * Dedicated investor relations
* All information is reported by ApexOne Investment Partners as of 10/6/2018.
Assets Under
Management

Currently
$586.6MM 10+ assets
Exited
$298.9MM 10+ assets
Portfolio LTV
67.3%  
Historical
Returns

Total IRR
17.7%  
Equity Multiple
2.28x  
Annual Cash
10.8%  
Years Of
Experience

As Principals
30+ years  
In Business
7 years  
Size
9 Staff * Dedicated investor relations
* All information is reported by ApexOne Investment Partners as of 10/6/2018.

Financials

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Offering Financial

Sponsor Diligence Report

Overview Sponsor

RealCrowd requires that all Sponsors must meet a minimum criteria to be qualified to list on the RealCrowd Marketplace. It is important to note that all diligence and qualifications are based on the Sponsor and the lifetime experience of all its current Principals. RealCrowd believes that evaluating the Principals is the most effective and objective way to consider the quality of a sponsor. The following two benchmarks are the basis of our criteria: principal experience and disclosures.

ApexOne Investment Partners
Houston, TX
https://www.apexoneip.com/
Report created on Nov 27, 2018
Over $50 Million Track Record

RealCrowd requires all Sponsors including their Principals to have a combined lifetime minimum of $50MM or $100MM of completed project cost or acquisition cost as a General Partner or Managing Member of an ownership entity with their own Principal equity invested, and at risk, in the project and with day-to-day involvement in the ownership depending on their lifetime Principal experience.

Current $586.6MM
Exited $298.9MM
Over 10 Years Principal Experience

RealCrowd requires all Sponsors to have Principals with a combined lifetime minimum experience of 7.5 or 10 years depending on their combined lifetime track record (see above). Qualifying experience include true Principal experience which is defined as a General Partner or Managing Member of an ownership entity with real cash equity invested, and at risk, in the project and with day-to-day involvement in the ownership. There must be at least 1 Principal with at minimum 5 Years of true Principal experience. Additional partially qualifying experience also includes Executive management experience, but only at VP-level or higher with a role specifically related to management of commercial real estate investment projects. Executive experience is discounted at 50% of time value as it relates to the minimum criteria for approval.

30+ Years
Combined
True Principal Experience 30+ Years
Years as Current Company 7 Years
Forclosures Clear
Short Sales Clear
Current or Pending Investigations Clear
Quick Analysis Flags

Quick Analysis Flags provide a high level indication as to whether or not the applicants themselves, or associates, appear on standard searches such as OFAC or Global Sanctions lists, bankruptcy filings, criminal records and other common disqualifying events.

Clear
Criminal Convictions None Reported
Current or Pending Legal Actions None Reported
Judgements, Claims, Arbitration None Reported
Bankruptcies

Bankruptcies are reported for a period of 10 years from the date of application. Bankruptcies from more than 10 years prior to the application date will be footnoted below.

None Reported
Lawsuits None Reported
Outstanding Liens Greater than $10,000 None Reported
UCC Defaults

Uniform Commercial Code Defaults pertain to obligations and loans that are typically secured by non-real property. A UCC Default would indicate the applicant has not met their obligations to a Security Agreement as per the stipulations of the UCC.

None Reported
Criminal Filings None Reported
Current or Pending Legal Actions None Reported
SEC Filings/Other Documents Related to SEC Filings None Reported
Real Estate Track Record Verification

Identifies current and historical investment properties owned by the Principals of the Sponsoring entity. 30% of the properties (up to 10 properties) are verified for acquisition value, acquisition date, sales date (if applicable), sales price (if applicable) and ownership entity.

FINRA Broker Check

All Principals are screened to identify any past disciplinary actions related to employment at brokerage firms.

Adverse Reporting/Articles/Findings

Web search for relevant news articles and reporting on any sponsor or manager activities that may impact or inform their ability to manage real estate.

Clear
Adverse Social Media Profiles

Search of common social media platforms for profiles that contain offensive content or material relevant to ones moral turpitude.

Clear
LinkedIn Search

Search of LinkedIn to confirm professional experience conforms with reported experience.

Clear
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Location Details

Nationwide

ApexOne targets Workforce Housing assets in suburban growth areas and secondary cities nationwide.

In the Student Housing space, ApexOne focuses on assets in at-campus locations of non-primary colleges and universities, student-centric environments, and schools that are affordable for workforce families.

Documents

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Offering Agreement Documents

Frequently Asked Questions

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RealCrowd offerings are open to 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?

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