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

Waterford Hills Apartments

Charlotte, NC

Multi-Family Property
GVA Real Estate Group Austin, TX
GVA Real Estate Group
  • IRR 22.49%
  • Equity Multiple 2.17x
  • Hold Period 3-5Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 1.49%
  • Stabilized Cash on Cash 22.91% Y4
  • First Distribution Apr 2023
  • Distribution Frequency Quarterly
  • Co-Investment 10% ($2.1M)
  • Preferred Return 8%
  • Investor Profit Share See Financials
  • Asset Profile Value Add
  • Loan-to-Value 74.56%
  • Current Occupancy 97.4%

About this Property

"High quality 1995 value-add multifamily asset in Charlotte, ULI's #6 rated real estate market for 2022, located in an overall A rated submarket with access to quality schools."

-Blake Davis, GVA Real Estate Group

Property Address 6219 Waterford Hills Dr
# Units 270
Year Built 1995
Year Renovated 2017-2020
Square Footage 245,886 sq. ft.(1)
Current Occupancy 97.4%
Market Occupancy 95.2%
Current Average Rents $1,164
Average Market Rents $1,382
Purchase Price $64,500,000
Price/Sq. Ft. $262.32/Sq. Ft.(1)
Stabilized Loan to Value 48.47%
(1)Net Rentable Square Feet

Top Questions

All answers are provided by the sponsor, GVA Real Estate Group, or its representatives.

What are you buying this proprty?

Blake Davis, GVA Real Estate Group: "GVA evaluates investment opportunities and selects those possessing most of the following characteristics: Significant discount to replacement cost, repositioning opportunity through capital value-add programs, acquisition through a off-market or limited marketed transactions, prime location in growing and emerging submarkets, and opportunity for operational efficiencies with our dedicated property management team. Waterford Hills is a property that checks every box for GVA."

"Built in 1995, Waterford Hills is a high-quality asset that has been adequately maintained by the seller and past ownership. The sponsor is acquiring the property through an off-market transaction for $238k per unit, which is well below replacement cost in the Charlotte market."

"Charlotte is a market the sponsor is very bullish on and has established a deep presence in. With over 3,500 units in the Charlotte MSA, Waterford Hills will mark the sponsors 17th acquisition in the area. This deep operational expertise and efficiency gives the sponsor an advantage to outperform."

"On top of this, rents at the property are $388 per unit below nearby competing properties with additional repositioning upside. The sponsor expects to be able to bring rents to market with a proven business & value-add plan. Ultimately, the sponsor has confidence in stabilizing the asset within 3 years which will make a high-performing asset in a high-growth market with plenty of buyer appetite for a disposition within a 5 year hold period."

 

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

Blake Davis, GVA Real Estate Group:

  • Rent upside: With rents at Waterford Hills $388 per unit below nearby competing properties, there is substantial upside in improving the quality of the asset and bringing rents to market.”
  • Top-rated neighborhood & school district: The property is located in north-Charlotte in the highly desirable Prosperity Church Road neighborhood. This location has an overall A rating according to niche.com which is zoned for B+ rated Mallard Creek High School. All these factors lead to a reliable renter profile.”
  • Leasing momentum: The property has strong rental growth with new leases signing 18.95% above in-place rents (6/30/2022 Rent Roll). Additionally, new lease trade out growth has increased 17.5% since initial underwriting in March.”
  • Renovation upside: The Property is primed for a renovation program that improves all 270 units, while a more robust value-add program will be implemented for 25% of the units.”

 

What is your investment strategy/business plan?

Blake Davis, GVA Real Estate Group: "Built in 1995, Waterford Hills is a high-quality asset that has been adequately maintained by the seller and past ownership. GVA has identified opportunities to increase the value of the asset by implementing a more active management team with expertise in Charlotte, executing a renovation scope to improve the quality of the asset, and moving rents to market with additional rental upside through the identified renovation program. The real estate company has experience executing on a similar business plan in Charlotte on a nearby property."

"GVA has budgeted to invest $2,623,928 into both the interior and exterior of the Property."

"Unit Renovations: With 65 classic units on the Property, GVA plans to invest approximately $11,833 per unit on extensive renovations across those units. There is ample renovation upside across the remaining 205 units and GVA plans to invest approximately $4,500 per unit on those renovations. The GVA designer plus renovation scope includes new plumbing & lighting fixtures, adding new shaker cabinets with pulls, a stainless steel appliance package, granite countertops, wood-like flooring in living areas, installing washer/dryers in all units, and a new paint scheme."

"Exterior Renovations: The renovation plan calls for investing $660,000 across the exterior which includes a full exterior paint, improving the landscaping, enhancing the signage, upgrading the leasing office, and updating the pool area including new pool furniture."

"GVA plans to acquire the Property with a three-year, floating-rate loan and two one-year extension options. The business plan calls for a capital event to occur within 3 years of ownership from either a sale or cash-out refinance, allowing ample time to pay off the loan before maturity.

 

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

Blake Davis, GVA Real Estate Group: "GVA believes in value-add multifamily housing as a high performing asset class that can withstand recessions. The sponsor's largest perceived risks are loan maturity and interest rates. GVA plans to mitigate these risks in two ways:"

  1. "In the business plan, the sponsor plans to execute a capital event before the loan balance is due in full at the end of the 5-year loan term. The capital event will be executed through a refinance, returning a portion of the principal equity and lowering debt payments through long-term debt or through a disposition."
  2. "The sponsor will mitigate interest rate risk by purchasing a rate cap ahead of the acquisition. This rate cap will protect from the downside risk of increasing debt payments in a rising interest rate environment."

 

NOTE: All answers provided by the sponsor, GVA Real Estate Group, or its representatives.

About this Property

"High quality 1995 value-add multifamily asset in Charlotte, ULI's #6 rated real estate market for 2022, located in an overall A rated submarket with access to quality schools."

-Blake Davis, GVA Real Estate Group

Property Address 6219 Waterford Hills Dr
# Units 270
Year Built 1995
Year Renovated 2017-2020
Square Footage 245,886 sq. ft.(1)
Current Occupancy 97.4%
Market Occupancy 95.2%
Current Average Rents $1,164
Average Market Rents $1,382
Purchase Price $64,500,000
Price/Sq. Ft. $262.32/Sq. Ft.(1)
Stabilized Loan to Value 48.47%
(1)Net Rentable Square Feet

Top Questions

All answers are provided by the sponsor, GVA Real Estate Group, or its representatives.

What are you buying this proprty?

Blake Davis, GVA Real Estate Group: "GVA evaluates investment opportunities and selects those possessing most of the following characteristics: Significant discount to replacement cost, repositioning opportunity through capital value-add programs, acquisition through a off-market or limited marketed transactions, prime location in growing and emerging submarkets, and opportunity for operational efficiencies with our dedicated property management team. Waterford Hills is a property that checks every box for GVA."

"Built in 1995, Waterford Hills is a high-quality asset that has been adequately maintained by the seller and past ownership. The sponsor is acquiring the property through an off-market transaction for $238k per unit, which is well below replacement cost in the Charlotte market."

"Charlotte is a market the sponsor is very bullish on and has established a deep presence in. With over 3,500 units in the Charlotte MSA, Waterford Hills will mark the sponsors 17th acquisition in the area. This deep operational expertise and efficiency gives the sponsor an advantage to outperform."

"On top of this, rents at the property are $388 per unit below nearby competing properties with additional repositioning upside. The sponsor expects to be able to bring rents to market with a proven business & value-add plan. Ultimately, the sponsor has confidence in stabilizing the asset within 3 years which will make a high-performing asset in a high-growth market with plenty of buyer appetite for a disposition within a 5 year hold period."

 

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

Blake Davis, GVA Real Estate Group:

  • Rent upside: With rents at Waterford Hills $388 per unit below nearby competing properties, there is substantial upside in improving the quality of the asset and bringing rents to market.”
  • Top-rated neighborhood & school district: The property is located in north-Charlotte in the highly desirable Prosperity Church Road neighborhood. This location has an overall A rating according to niche.com which is zoned for B+ rated Mallard Creek High School. All these factors lead to a reliable renter profile.”
  • Leasing momentum: The property has strong rental growth with new leases signing 18.95% above in-place rents (6/30/2022 Rent Roll). Additionally, new lease trade out growth has increased 17.5% since initial underwriting in March.”
  • Renovation upside: The Property is primed for a renovation program that improves all 270 units, while a more robust value-add program will be implemented for 25% of the units.”

 

What is your investment strategy/business plan?

Blake Davis, GVA Real Estate Group: "Built in 1995, Waterford Hills is a high-quality asset that has been adequately maintained by the seller and past ownership. GVA has identified opportunities to increase the value of the asset by implementing a more active management team with expertise in Charlotte, executing a renovation scope to improve the quality of the asset, and moving rents to market with additional rental upside through the identified renovation program. The real estate company has experience executing on a similar business plan in Charlotte on a nearby property."

"GVA has budgeted to invest $2,623,928 into both the interior and exterior of the Property."

"Unit Renovations: With 65 classic units on the Property, GVA plans to invest approximately $11,833 per unit on extensive renovations across those units. There is ample renovation upside across the remaining 205 units and GVA plans to invest approximately $4,500 per unit on those renovations. The GVA designer plus renovation scope includes new plumbing & lighting fixtures, adding new shaker cabinets with pulls, a stainless steel appliance package, granite countertops, wood-like flooring in living areas, installing washer/dryers in all units, and a new paint scheme."

"Exterior Renovations: The renovation plan calls for investing $660,000 across the exterior which includes a full exterior paint, improving the landscaping, enhancing the signage, upgrading the leasing office, and updating the pool area including new pool furniture."

"GVA plans to acquire the Property with a three-year, floating-rate loan and two one-year extension options. The business plan calls for a capital event to occur within 3 years of ownership from either a sale or cash-out refinance, allowing ample time to pay off the loan before maturity.

 

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

Blake Davis, GVA Real Estate Group: "GVA believes in value-add multifamily housing as a high performing asset class that can withstand recessions. The sponsor's largest perceived risks are loan maturity and interest rates. GVA plans to mitigate these risks in two ways:"

  1. "In the business plan, the sponsor plans to execute a capital event before the loan balance is due in full at the end of the 5-year loan term. The capital event will be executed through a refinance, returning a portion of the principal equity and lowering debt payments through long-term debt or through a disposition."
  2. "The sponsor will mitigate interest rate risk by purchasing a rate cap ahead of the acquisition. This rate cap will protect from the downside risk of increasing debt payments in a rising interest rate environment."

 

NOTE: All answers provided by the sponsor, GVA Real Estate Group, or its representatives.

Offered By

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Assets Under
Management

Currently
$5.3B 100+ assets
Exited
$1B 50+ assets
Portfolio LTV
70%  
Historical
Realized Returns

Total IRR
46.6%  
Equity Multiple
2.91x  
Annual Cash
10.3%  
Years Of
Experience

As Principals
10+ years  
In Business
7 years  
Size
12 Staff * Dedicated investor relations
* All information is reported by GVA Real Estate Group as of 7/21/2022.
Assets Under
Management

Currently
$5.3B 100+ assets
Exited
$1B 50+ assets
Portfolio LTV
70%  
Historical
Returns

Total IRR
46.6%  
Equity Multiple
2.91x  
Annual Cash
10.3%  
Years Of
Experience

As Principals
10+ years  
In Business
7 years  
Size
12 Staff * Dedicated investor relations
* All information is reported by GVA Real Estate Group as of 7/21/2022.

Financials

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Offering Financial

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Location Details

Charlotte, NC

Blake Davis, GVA Real Estate Group: "Waterford Hills is located in north-Charlotte in the highly desirable Prosperity Church Road neighborhood. The neighborhood has an overall A-rating according to niche.com, which is zoned for B+ rated Mallard Creek High School. Prosperity Church Road neighborhood attracts many families and young professionals due to it's dense suburban feel, access to major employment centers, and high quality public schools."

"Sitting equidistant between I-77 and I-85, two of the Southeast’s major north-south arteries, and just south of the I-485 loop, residents have excellent accessibility to all the Charlotte MSA offers. This strategic location provides quick access (15 minutes or less drive time) to Charlotte’s largest employment centers. The main employment centers include Centene’s East Coast HQ (6,000 employees), University Research Park/University City (85,000 employees), Uptown Charlotte (120,000 employees), and the rapidly growing municipalities by Lake Norman. The sponsor believes the highly regarded neighborhood, schools, and employment hubs lead to a reliable renter profile."

Documents

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Offering Agreement Documents

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