Property Details
Stabilized Occupancy  Stabilized Income  Stabilized Cashflow 
Asset Profile
Value Add

HLC High Meadow

Durant, OK

Multi-Family Property
HLC Equity Pittsburgh, PA
HLC Equity
  • IRR 11%
  • Equity Multiple 2.26x
  • Hold Period 7-10Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 7.5%
  • Stabilized Cash on Cash 9% in Y4
  • First Distribution Jan 2022
  • Distribution Frequency Quarterly
  • Co-Investment 18% ($1.4M)
  • Preferred Return 7%
  • Investor Profit Share 70%
  • Asset Profile Value Add
  • Loan-to-Value 73%
  • Current Occupancy 97.1%

About this Property

"208-unit A Class multi-family community that was built in 2007 and situated in a strategic and emerging location, Durant, OK, part of the Dallas-Fort Worth Combined Statistical Area."

-Joseph Elbogen, HLC Equity

Address 265 South 2nd St
Square Footage +/- 197,944 sq. ft.
# of Units 208
Year Built 2007
Year Renovated N/A
Current Occupancy 97.1%
Market Occupancy >90%
Current Average Rents $888
Average Market Rents N/A(1)
Purchase Price $21,000,000
Price/Sq. Ft. $106/Sq. Ft.
Stabilized Loan to Value 65%
(1)The property, High Meadow, is superior to the small number of competing properties in the area especially in terms of amenities and/or vintage. Many of these other properties have an affordable component, but High Meadow is fully free market. Without justifiable comps to provide accurate market rents, please note that the Sponsor has already been able to increase rents and maintain higher occupancy since acquiring the property.

Top Questions

All answers are provided by the sponsor, HLC Equity, or its representatives.

 

Why are you buying this property?

Joseph Elbogen, HLC Equity: "High Meadow is a well established cash flowing asset with little competition."

 

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

Joseph Elbogen, HLC Equity:

  • "Property was bought at $21M and that is the basis that Sponsor is offering to investors, and a Broker Opinion of Value recently placed the deal valuation between $22.6M-$26M depending on loan assumptions."
  • "Since taking ownership of the property, Sponsor has increased rents and the property has outperformed initial projections."
  • "Stable in place yields, with significant room for a value-add program and organic market growth."
  • "Opportunity to increase revenue while taking advantage of historically low fixed rate debt."
  • "Sponsor has a proven track record in the real estate investment business and a significant equity contribution in the deal (skin in the game) ensuring an alignment of interests."
  • "Full investor transparency through consistent financial and property level reporting."
  • "Management group is focused on staying ahead of the curve by implementing proprietary innovative technologies and processes to improve portfolio performance."

 

What is your investment strategy/business plan?

Joseph Elbogen, HLC Equity:

  • "Ownership of a strong cash flow producing core asset with a purchase cap rate at 5.7% and average projected deal level cash on cash at 10.4% for a property that is superior to comps in the area."
  • "Value-add included."
  • "Exit cap projected to be 6%."

 

How has COVID-19 impacted your business plan?

Joseph Elbogen, HLC Equity: "High Meadow has had strong financials pre-COVID-19 and continues to be a solid cash flowing property to this day. The property has already been performing better than projected."

 

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

Joseph Elbogen, HLC Equity: "Please refer to Private Placement Memorandum."

 

NOTE: All answers provided by the sponsor, HLC Equity, or its representatives.

About this Property

"208-unit A Class multi-family community that was built in 2007 and situated in a strategic and emerging location, Durant, OK, part of the Dallas-Fort Worth Combined Statistical Area."

-Joseph Elbogen, HLC Equity

Address 265 South 2nd St
Square Footage +/- 197,944 sq. ft.
# of Units 208
Year Built 2007
Year Renovated N/A
Current Occupancy 97.1%
Market Occupancy >90%
Current Average Rents $888
Average Market Rents N/A(1)
Purchase Price $21,000,000
Price/Sq. Ft. $106/Sq. Ft.
Stabilized Loan to Value 65%
(1)The property, High Meadow, is superior to the small number of competing properties in the area especially in terms of amenities and/or vintage. Many of these other properties have an affordable component, but High Meadow is fully free market. Without justifiable comps to provide accurate market rents, please note that the Sponsor has already been able to increase rents and maintain higher occupancy since acquiring the property.

Top Questions

All answers are provided by the sponsor, HLC Equity, or its representatives.

 

Why are you buying this property?

Joseph Elbogen, HLC Equity: "High Meadow is a well established cash flowing asset with little competition."

 

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

Joseph Elbogen, HLC Equity:

  • "Property was bought at $21M and that is the basis that Sponsor is offering to investors, and a Broker Opinion of Value recently placed the deal valuation between $22.6M-$26M depending on loan assumptions."
  • "Since taking ownership of the property, Sponsor has increased rents and the property has outperformed initial projections."
  • "Stable in place yields, with significant room for a value-add program and organic market growth."
  • "Opportunity to increase revenue while taking advantage of historically low fixed rate debt."
  • "Sponsor has a proven track record in the real estate investment business and a significant equity contribution in the deal (skin in the game) ensuring an alignment of interests."
  • "Full investor transparency through consistent financial and property level reporting."
  • "Management group is focused on staying ahead of the curve by implementing proprietary innovative technologies and processes to improve portfolio performance."

 

What is your investment strategy/business plan?

Joseph Elbogen, HLC Equity:

  • "Ownership of a strong cash flow producing core asset with a purchase cap rate at 5.7% and average projected deal level cash on cash at 10.4% for a property that is superior to comps in the area."
  • "Value-add included."
  • "Exit cap projected to be 6%."

 

How has COVID-19 impacted your business plan?

Joseph Elbogen, HLC Equity: "High Meadow has had strong financials pre-COVID-19 and continues to be a solid cash flowing property to this day. The property has already been performing better than projected."

 

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

Joseph Elbogen, HLC Equity: "Please refer to Private Placement Memorandum."

 

NOTE: All answers provided by the sponsor, HLC Equity, or its representatives.

Offered By

HLC Equity

HLC Equity

Pittsburgh, PA

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Assets Under
Management

Currently
$135MM 20+ assets
Exited
$125MM 40+ assets
Portfolio LTV
46%  
Historical
Realized Returns

Total IRR
48%  
Equity Multiple
1.53x  
Annual Cash
6.7%  
Years Of
Experience

As Principals
30+ years  
In Business
70 years  
Size
13 Staff * Dedicated investor relations
* All information is reported by HLC Equity as of 8/24/2021.
Assets Under
Management

Currently
$135MM 20+ assets
Exited
$125MM 40+ assets
Portfolio LTV
46%  
Historical
Returns

Total IRR
48%  
Equity Multiple
1.53x  
Annual Cash
6.7%  
Years Of
Experience

As Principals
30+ years  
In Business
70 years  
Size
13 Staff * Dedicated investor relations
* All information is reported by HLC Equity as of 8/24/2021.

Financials

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Offering Financial

Sponsor Diligence Report

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Diligence Preview

Location Details

Durant, OK

Joseph Elbogen, HLC Equity:

  • "Conveniently situated in an emerging, economically diverse city that has seen exceptional population and job growth over the past decade in Durant, OK, north of Dallas and Sherman, TX."
  • "Superior to similar multifamily properties in the area. All other properties built post-2000 with similar amenities have affordable housing restrictions."
  • "Durant is ranked one of the fastest growing cities in OK, and we expect it to continue to benefit from the growth of the Dallas-Fort Worth metroplex, which is one of the fastest growing MSA's in the country."
  • "A major manufacturing and agriculture hub with a low unemployment rate."
  • "Located within the vicinity of the Choctaw Nation Headquarters, the Choctaw Casino Resort and Southeastern Oklahoma State University"
  • "AllianceHealth Durant" is one of the state’s largest healthcare providers"
  • "Between 8-10 million tourists every year with Lake Texoma being the 12th largest lake in the country and the Choctaw Casino Resort nearby. The future expansion plans for the Casino should drive both economic activity and job creation"
  • "Emerging market where the US 75 GAP project will further improve the commute from Dallas"
  • "Surrounded by retail venues: Walmart, Lowe's, Big Lots, Orscheln Farm & Home, First United Bank and Dollar General

Documents

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Offering Agreement Documents

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