Northlake Townhomes

North Charleston, SC

  • Target Annual Cash 10.5%
  • Target IRR 18.6%
  • Target Equity Multiple 2.15x
  • Asset Profile Value Add
  • Minimum Investment $50K
  • Estimated Hold 5Y

Only 7 spots left to invest

Apply to Invest
Brick Lane Washington, DC

Multi-Family Property

About this Property

The Property consists of 76 town-home style apartment units on 13.16 acres of land in North Charleston, SC. Northlake was originally built in 1984 and has been institutionally maintained and managed by URS Capital Partners.

Northlake is 97.5% occupied as of May 18th, 2018 and is producing approximately $409,000 of in-place Net Operating Income (NOI) annually. Currently, only two of the units have been upgraded and are achieving rent premiums of $75 and $125 a month. Brick Lane has budgeted to renovate 50 of the remaining units by installing a new appliance package, vinyl plank flooring, lighting and fixture package, and washers and dryers. Brick Lane will acquire the Property with long-term, low interest-rate debt financing from Freddie Mac and plans to hold the asset for 5 – 10 years (target hold of 5 years). As shown in the Financial Projections, the Property generates cash-on-cash returns to the Investor of 7.1% annually starting Year 1 of the investment and averages a 10.5% cash-on cash return over the first 5 years. Brick Lane projects an 18.62% IRR and a 2.15x Equity Multiple to the Investor over a 5-Year hold period. The Year 1 debt service coverage ratio (DSCR) is 1.99x, demonstrating the high level of deal stability.

Built in 1984, the Property represents an excellent opportunity to acquire a well-located asset with an attractive unit mix composed entirely of spacious townhome-style units. Brick Lane will leverage the market demand to drive organic rent growth in addition to implementing a significant value-add program to align rents with the submarket. Brick Lane will further take advantage of several online marketing platforms not currently utilized by management to market the units for lease and promote the project to the general public. The Property is positioned for immediate success in a booming submarket with significant rent growth trends, in addition to being located within immediate accessibility to major economic drivers and the area’s premier retail destinations.

Read more Read less

Key Points

  • Strong Risk-Adjusted Returns, With No Construction or Lease-Up Risk: The Manager projects strong returns relative to the low risk profile of the deal. The Project generates cash-on-cash returns to the Investor of 7.1% annually starting Year 1 of the investment and averages 10.5% over the first 5 years. Brick Lane projects an 18.62% IRR and a 2.15x Equity Multiple to the Investor over a 5-Year hold period. The Year 1 DSCR is 1.99x, demonstrating the high level of deal stability. These returns are very strong, especially given that there is no construction or lease-up risk on the Project.
  • Large Townhome Layouts & Idyllic Setting: The Property represents an excellent opportunity to acquire a well-located asset with an attractive unit mix composed entirely of spacious townhome-style units. All of the townhomes surround a beautiful man-made lake with lush vegetation and back yard patios facing the water.
  • Substantial Rent Growth Potential: Northlake Townhomes is in great physical condition and the Property will benefit from a systematic interior upgrade program in order to help push rents to market average and close a material submarket rent gap. Brick Lane has budgeted to renovate 50 of the remaining units by installing a new appliance package, vinyl plank flooring, lighting and fixture package, and washers and dryers and should achieve rent premiums of $170/ month per renovated unit at a cost of $6,600 per unit.

Financials

Login or Register to View Financials

Available to Accredited Investors:

  • Get an overview of important financial details to make a smarter investment
  • Analyze the financial pro forma to see how projected returns are distributed over time
  • Review source and uses and other important details
Offering Financial

Location Details

North Charleston, SC

Booming Submarket: Since 2012, the North Charleston submarket has seen 25.4%+ rent growth, driven by heavy population and job growth in the surrounding areas. Despite the recent surge in rent growth, North Charleston’s asking rents are lagging all other submarkets in Charleston County, which demonstrates potential to grow rents at a faster pace than other surrounding submarkets.

Strong Employment Drivers: Charleston has attracted large manufacturing employers in recent years with companies like Boeing, Volvo, and Mercedes. In 2010, the population of Charleston County was estimated at 350,196 people, which increased to 396,484 (13.2% increase) by July 1, 2016, according to the United States Census Bureau. The Property also lies just 2.8 miles from Charleston International Airport (CHS) and Boeing’s 1.2 Million square foot airplane production facility. The Boeing site employs approximately 7,000 people and is one of the largest employment centers in the state of South Carolina.

Close Proximity to Class A Retail: Situated 2.2 miles away from Northlake Townhomes is the Tanger Outlets—providing residents with several retail, dining and entertainment options. North Charleston’s Tanger Outlets is home to 125+ retail stores and is surrounded by other retail, restaurants, and entertainment, which includes a Walmart Supercenter, Sam’s Club, a movie theatre, and over 30 restaurants.

Read more Read less

Documents

Login or Register to View Documents

Available to Accredited Investors:

  • View, download, and print the offering PPM (Private Placement Memorandum)
  • View, download, and print the detailed financial projections
  • Access all of the important documents for this offering in one place
Offering Agreement Documents

Frequently Asked Questions

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

The funding deadline is July 17th, 2018.

The first projected distribution is scheduled for October 2018.

Distributions are scheduled to go out on a quarterly basis.

No, this offering is only available to US residents.

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 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.

RealCrowd is a marketplace that connects investors with qualified sponsors. We strive for transparency and impartiality. For this reason, we do not participate in any offerings on our site.

Have a Question?

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

Please resolve the captcha and submit.

We'll get back to you soon!

In the meantime, you can create an account to view detailed information about Northlake Townhomes.

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

Signup for our free 6 week course on the fundamentals of commercial real estate investing.