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

Aviary Village & The Cloisters

Myrtle Beach & Conway, SC

Multi-Family Property
Aulder Capital New York, NY
Aulder Capital
  • IRR 15.76%
  • Equity Multiple 1.93x
  • Hold Period 5Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 0%
  • Stabilized Cash on Cash 7.03% Y3
  • First Distribution Aug 2024
  • Distribution Frequency Quarterly
  • Co-Investment 5% ($580K)
  • Preferred Return 8%
  • Investor Profit Share See Financials
  • Asset Profile Value Add
  • Loan-to-Value 70%
  • Current Occupancy 99.38%

About this Property

"Value-add multifamily portfolio with proven rental premiums up to $350-450; situated in or near Myrtle Beach, US News & World Report's #1 fastest growing market in the United States."

- John Reid, Aulder Capital

Property Address 902 67th Ave N, Myrtle Beach, SC
& 555 Wild Wing Blvd, Conway, SC
# of Units 160
Square Footage 148,008 sq. ft.
Year Built 1994 (The Cloisters)
2000 (Aviary Village)
Year Renovated 2022
Current Occupancy 99.38%
Market Occupancy 90.4%
Current Average Rent $1,120
Average Market Rent $1,486
Acquisition Price $27,600,000
Price/SF $186.48
Stabilized Loan to Value 54.47%

Top Questions

All answers are provided by the sponsor, Aulder Capital, or its representatives.

 

Why are you buying this property?

John Reid, Aulder Capital: "The Myrtle Beach market has proven itself as a premier growth market within the United States, attracting both retirees, young professionals, and digital nomads who are drawn in by the high quality of life and low cost of living in the area. CoStar reports an impressive 16.3% rent growth over the past year and rents are projected to increase 10.3% throughout 2022. The market has been resilient throughout the pandemic and is already exceeding pre-pandemic highs with 2021 representing a record year for total passengers traveling through Myrtle Beach International Airport."

"Aviary Village & The Cloisters, a two-property portfolio, represents a prime opportunity to reposition Class B/B+ properties with luxury finishes. Built in 2000 and 1994 respectively, the properties feature large floor plans with 9ft ceilings and washer/dryer hooks, and full amenity package with a clubhouse/leasing office, pool area and much more. Strategic investments in capital improvements, interior renovations, operations, and branding/marketing are necessary to capture the rental demand that favors properties with more modern finishes, expansive amenity packages, and professional management and customer service."

 

What are the most important aspects of this investment opportunity for the investors?

John Reid, Aulder Capital:

Market Overview:

  • "Strong Population Growth: Myrtle Beach is the fastest-growing city in the U.S. and ranks 5th in the nation for 5-year projected population growth."
  • "Robust Rent Growth: Rents have increased by an impressive 16.3% over the past year and are projected to increase 10.3% in 2022."
  • "Public Investment in Infrastructure: South Carolina and The City of Myrtle Beach are making large investments in the MSA through investments in transportation infrastructure and private public partnerships, fueling further growth."
  • "Record Breaking Year: 2021 represents a record year for total passengers traveling through Myrtle Beach International Airport, surpassing the previous record from 2019."

Investment Highlights:/p>

  • "Prime Locations near Major Demand Drivers: Each property is well-located within their respective submarkets and benefit from proximity to local leisure and employment hubs as well as a major university, Coastal Carolina."
  • "Proven Renovation Premiums with substantial Mark-to-Market Opportunity on lease Trade-outs: $350-$450+ upside in rents through mark-to-market and renovation premiums while maintaining relative affordability in comparison to Class A properties."
  • "Operational Upside: Institutionalize operations by leveraging in-house property management platform. Adding to our existing 288-unit Aulder portfolio in the Myrtle Beach MSA establishes sufficient market scale to create operational synergies, reduce overhead, and negotiate preferred cost structures with vendors and contractors."
  • "Asset Preservation and Revenue Enhancing Capital Improvements: Reposition the properties through a customized capital improvements plan to enhance amenity package, improve curb appeal, and reduce ongoing maintenance."

 

What is your investment strategy/business plan?

John Reid, Aulder Capital: "The business plan is to reposition the properties through a customized capital improvements plan to enhance amenity package, improve curb appeal, and reduce ongoing maintenance. The interior strategy is to renovate 116 total units (72.50%) with an average spend of $7,743, producing a weighted average rent premium of $227 per unit and a 34.76% ROI. There is upside with a Mark-to-Market strategy on below market in-place leases."

"Operational initiatives will institutionalize reporting and day-to-day management by leveraging in-house property management and construction management platform. Adding to our existing 288-unit Aulder portfolio in the Myrtle Beach MSA establishes sufficient market scale to create operational synergies, reduce overhead, and negotiate preferred cost structures."

 

How has COVID-19 impacted your business plan?

John Reid, Aulder Capital: “COVID-19 has created some interesting opportunities within the Myrtle Beach market. The pandemic has accelerated the growth of the market which has been fueled by retirees, young professionals and digital nomads seeking more economical options than the higher cost markets such as Florida. The hospitality industry has also outperformed other major markets with demand that is higher than pre-pandemic levels as travelers flocked to the predominantly drive-to markets such as Myrtle Beach.”

 

What are the risks and how are you mitigating those risks?

John Reid, Aulder Capital: “Interest rate risk and the growing cost of labor and materials continue to be a major risk factor across all investments within real estate. The interest rate risk has been mitigated with an interest rate cap for 3 years at 2.75% strike rate, capping the all-in interest rate at 7.30% during the renovation phase. As the costs of labor and materials rise, Aulder can leverage the scale of their 30+ building portfolio within the Myrtle Beach MSA to bid down local vendors with larger scale projects and synergies across assets.”

 

NOTE: All answers provided by the sponsor, Aulder Capital, or its representatives.

About this Property

"Value-add multifamily portfolio with proven rental premiums up to $350-450; situated in or near Myrtle Beach, US News & World Report's #1 fastest growing market in the United States."

- John Reid, Aulder Capital

Property Address 902 67th Ave N, Myrtle Beach, SC
& 555 Wild Wing Blvd, Conway, SC
# of Units 160
Square Footage 148,008 sq. ft.
Year Built 1994 (The Cloisters)
2000 (Aviary Village)
Year Renovated 2022
Current Occupancy 99.38%
Market Occupancy 90.4%
Current Average Rent $1,120
Average Market Rent $1,486
Acquisition Price $27,600,000
Price/SF $186.48
Stabilized Loan to Value 54.47%

Top Questions

All answers are provided by the sponsor, Aulder Capital, or its representatives.

 

Why are you buying this property?

John Reid, Aulder Capital: "The Myrtle Beach market has proven itself as a premier growth market within the United States, attracting both retirees, young professionals, and digital nomads who are drawn in by the high quality of life and low cost of living in the area. CoStar reports an impressive 16.3% rent growth over the past year and rents are projected to increase 10.3% throughout 2022. The market has been resilient throughout the pandemic and is already exceeding pre-pandemic highs with 2021 representing a record year for total passengers traveling through Myrtle Beach International Airport."

"Aviary Village & The Cloisters, a two-property portfolio, represents a prime opportunity to reposition Class B/B+ properties with luxury finishes. Built in 2000 and 1994 respectively, the properties feature large floor plans with 9ft ceilings and washer/dryer hooks, and full amenity package with a clubhouse/leasing office, pool area and much more. Strategic investments in capital improvements, interior renovations, operations, and branding/marketing are necessary to capture the rental demand that favors properties with more modern finishes, expansive amenity packages, and professional management and customer service."

 

What are the most important aspects of this investment opportunity for the investors?

John Reid, Aulder Capital:

Market Overview:

  • "Strong Population Growth: Myrtle Beach is the fastest-growing city in the U.S. and ranks 5th in the nation for 5-year projected population growth."
  • "Robust Rent Growth: Rents have increased by an impressive 16.3% over the past year and are projected to increase 10.3% in 2022."
  • "Public Investment in Infrastructure: South Carolina and The City of Myrtle Beach are making large investments in the MSA through investments in transportation infrastructure and private public partnerships, fueling further growth."
  • "Record Breaking Year: 2021 represents a record year for total passengers traveling through Myrtle Beach International Airport, surpassing the previous record from 2019."

Investment Highlights:/p>

  • "Prime Locations near Major Demand Drivers: Each property is well-located within their respective submarkets and benefit from proximity to local leisure and employment hubs as well as a major university, Coastal Carolina."
  • "Proven Renovation Premiums with substantial Mark-to-Market Opportunity on lease Trade-outs: $350-$450+ upside in rents through mark-to-market and renovation premiums while maintaining relative affordability in comparison to Class A properties."
  • "Operational Upside: Institutionalize operations by leveraging in-house property management platform. Adding to our existing 288-unit Aulder portfolio in the Myrtle Beach MSA establishes sufficient market scale to create operational synergies, reduce overhead, and negotiate preferred cost structures with vendors and contractors."
  • "Asset Preservation and Revenue Enhancing Capital Improvements: Reposition the properties through a customized capital improvements plan to enhance amenity package, improve curb appeal, and reduce ongoing maintenance."

 

What is your investment strategy/business plan?

John Reid, Aulder Capital: "The business plan is to reposition the properties through a customized capital improvements plan to enhance amenity package, improve curb appeal, and reduce ongoing maintenance. The interior strategy is to renovate 116 total units (72.50%) with an average spend of $7,743, producing a weighted average rent premium of $227 per unit and a 34.76% ROI. There is upside with a Mark-to-Market strategy on below market in-place leases."

"Operational initiatives will institutionalize reporting and day-to-day management by leveraging in-house property management and construction management platform. Adding to our existing 288-unit Aulder portfolio in the Myrtle Beach MSA establishes sufficient market scale to create operational synergies, reduce overhead, and negotiate preferred cost structures."

 

How has COVID-19 impacted your business plan?

John Reid, Aulder Capital: “COVID-19 has created some interesting opportunities within the Myrtle Beach market. The pandemic has accelerated the growth of the market which has been fueled by retirees, young professionals and digital nomads seeking more economical options than the higher cost markets such as Florida. The hospitality industry has also outperformed other major markets with demand that is higher than pre-pandemic levels as travelers flocked to the predominantly drive-to markets such as Myrtle Beach.”

 

What are the risks and how are you mitigating those risks?

John Reid, Aulder Capital: “Interest rate risk and the growing cost of labor and materials continue to be a major risk factor across all investments within real estate. The interest rate risk has been mitigated with an interest rate cap for 3 years at 2.75% strike rate, capping the all-in interest rate at 7.30% during the renovation phase. As the costs of labor and materials rise, Aulder can leverage the scale of their 30+ building portfolio within the Myrtle Beach MSA to bid down local vendors with larger scale projects and synergies across assets.”

 

NOTE: All answers provided by the sponsor, Aulder Capital, or its representatives.

Offered By

Aulder Capital

Aulder Capital

New York, NY

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Assets Under
Management

Currently
$597.8MM 20+ assets
Exited
$316.7MM 10+ assets
Portfolio LTV
55.2%  
Historical
Realized Returns

Total IRR
18.7%  
Equity Multiple
1.51x  
Annual Cash
N/R  
Years Of
Experience

As Principals
30+ years  
In Business
10 years  
Size
25 Staff * Dedicated investor relations
* All information is reported by Aulder Capital as of 10/4/2022.
Assets Under
Management

Currently
$597.8MM 20+ assets
Exited
$316.7MM 10+ assets
Portfolio LTV
55.2%  
Historical
Returns

Total IRR
18.7%  
Equity Multiple
1.51x  
Annual Cash
N/R  
Years Of
Experience

As Principals
30+ years  
In Business
10 years  
Size
25 Staff * Dedicated investor relations
* All information is reported by Aulder Capital as of 10/4/2022.

Financials

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Offering Financial

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Location Details

Myrtle Beach & Conway, SC

John Reid, Aulder Capital: “Each property is well-located within their respective submarkets and benefit from proximity to local leisure and employment hubs."

"Aviary Village is located near to the Coastal Carolina University and benefits from the 3,914 full- and part-time jobs produced by the University. CCU has also pledged a $300 million building campaign as enrollment has grown by 35.5% in the last decade."

"The Cloisters is located near to the beach with the local attractions and leisure activities drawing in retirees, young professionals, and digital nomads. The 100% one-bedroom layouts cater perfectly to singles and young couples relocating to the market to join a well maintained and amenitized community with access to all of the social activities that Myrtle Beach has to offer.”

"With over 400,000 people within the MSA, Myrtle Beach is the fastest-growing city in the United States, according to a list by U.S. News and World Report. Myrtle Beach is the only city in the Top 10 that isn’t in Florida. According to the census, the city has grown a 3.4% in 2021 with Visual Capitalist forecasting continued growth of 3.16% through 2025."

"Core industries of manufacturing, technology, healthcare, and aerospace are fueling recent job growth in high income sectors and driving the unemployment rate to just 4.1%."

Documents

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Offering Agreement Documents

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