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

Fox Brook & Walnut Manor

Muncie, IN

Multi-Family Property
James Management Group Carmel, IN
James Management Group
  • IRR 16-17%
  • Equity Multiple 1.7x
  • Hold Period 5-10Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 6.7%
  • Stabilized Cash on Cash 7.7% in Y2
  • First Distribution Oct 2020
  • Distribution Frequency Quarterly
  • Co-Investment 13.3%
  • Preferred Return N/A
  • Investor Profit Share 90%
  • Asset Profile Value Add
  • Loan-to-Value 75%
  • Current Occupancy 92%

About this Property

Address 4000 North Walnut Street
125 East Oldfield Lane
Square Footage 143,693 sq. ft.
# of Units 161
Year Built 2001 & 1995
Current Occupancy 92%
Market Occupancy 90%
Current Average Rents $725
Average Market Rents $775
Purchase Price $8,800,000
Stabilized Loan to Value 68%

 

Why you are buying the Property?

James Management Group (JMG) currently owns 498 units within the area and they were excited to be able to add 161 units to this portfolio. Muncie IN, which is a rapidly growing city, low crime, and a strong economy and is currently underserved in this asset class. Fox Brook & Walnut Manor is in a great location and located in a tranquil area, which mainly consists of single-family homes. The overall project will require $1.7M in rehab to update units, amenities, and some deferred maintenance.

 

What is your investment strategy/business plan for the Property?

The overall project requires $1.7M rehab. This will be used to update units ($488K), replace asphalt, renew wood siding and paint along with other substantial minor upgrades around the property. James Management Group was able to acquire the property at below-market rents, which allows them to increase rents to market rents. JMG will use its proven management skills to operate this property to its full potential.

 

What are the first 3 steps you will take to maximize cashflow and property value?

  1. Convert current management to in-house (JMG) property management.
  2. Maximize rents and a utility bill back program to grow income.
  3. Use JMG employees to complete 90% of the maintenance and repairs to the asset, which will help in the task of minimizing expenses.

 

What are the 3 most important aspects of this investment opportunity for the investors?

  1. The right purchase price going in at $54,650 per unit.
  2. Great debt structure at 4% fixed, 3-year interest-only payments, and a 10-year loan payoff as a safety net against any temporary downturn in the market.
  3. Indiana is the 5th state in the country for attracting new business, and being government friendly. The property is located 3 miles from Ball State University and surrounded by top tier companies and retail.

 

Are there any unique aspects to the property, your investment strategy or this Offering that will help create value for investors?

JMG's unique ability to rehab an asset, manage each apartment complex, and create great new relationships with the tenant base is what they do!

 

How are risks being mitigated during the hold period?

  1. The right purchase price.
  2. The right debt on the property, along with the $1.7M rehab creates the perfect leverage position.
  3. Proven in-house management.
  4. Proven track record.

Title to the real property will be held by three LLC’s, as tenants in common. Investments made by RealCrowd investors will correlate to their ownership in Walnut Manor I, which is a tenant in common that is managed by W. Michael James. All three tenants in common are managed by W. Michael James. Walnut-GV X, LLC and Walnut CM, LLC are both 1031 exchanges and the 3rd, Walnut Manor I, LLC is where all other investors including RealCrowd investors will be investing.

About this Property

Address 4000 North Walnut Street
125 East Oldfield Lane
Square Footage 143,693 sq. ft.
# of Units 161
Year Built 2001 & 1995
Current Occupancy 92%
Market Occupancy 90%
Current Average Rents $725
Average Market Rents $775
Purchase Price $8,800,000
Stabilized Loan to Value 68%

 

Why you are buying the Property?

James Management Group (JMG) currently owns 498 units within the area and they were excited to be able to add 161 units to this portfolio. Muncie IN, which is a rapidly growing city, low crime, and a strong economy and is currently underserved in this asset class. Fox Brook & Walnut Manor is in a great location and located in a tranquil area, which mainly consists of single-family homes. The overall project will require $1.7M in rehab to update units, amenities, and some deferred maintenance.

 

What is your investment strategy/business plan for the Property?

The overall project requires $1.7M rehab. This will be used to update units ($488K), replace asphalt, renew wood siding and paint along with other substantial minor upgrades around the property. James Management Group was able to acquire the property at below-market rents, which allows them to increase rents to market rents. JMG will use its proven management skills to operate this property to its full potential.

 

What are the first 3 steps you will take to maximize cashflow and property value?

  1. Convert current management to in-house (JMG) property management.
  2. Maximize rents and a utility bill back program to grow income.
  3. Use JMG employees to complete 90% of the maintenance and repairs to the asset, which will help in the task of minimizing expenses.

 

What are the 3 most important aspects of this investment opportunity for the investors?

  1. The right purchase price going in at $54,650 per unit.
  2. Great debt structure at 4% fixed, 3-year interest-only payments, and a 10-year loan payoff as a safety net against any temporary downturn in the market.
  3. Indiana is the 5th state in the country for attracting new business, and being government friendly. The property is located 3 miles from Ball State University and surrounded by top tier companies and retail.

 

Are there any unique aspects to the property, your investment strategy or this Offering that will help create value for investors?

JMG's unique ability to rehab an asset, manage each apartment complex, and create great new relationships with the tenant base is what they do!

 

How are risks being mitigated during the hold period?

  1. The right purchase price.
  2. The right debt on the property, along with the $1.7M rehab creates the perfect leverage position.
  3. Proven in-house management.
  4. Proven track record.

Title to the real property will be held by three LLC’s, as tenants in common. Investments made by RealCrowd investors will correlate to their ownership in Walnut Manor I, which is a tenant in common that is managed by W. Michael James. All three tenants in common are managed by W. Michael James. Walnut-GV X, LLC and Walnut CM, LLC are both 1031 exchanges and the 3rd, Walnut Manor I, LLC is where all other investors including RealCrowd investors will be investing.

Offered By

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Assets Under
Management

Currently
$141MM 10+ assets
Exited
$126MM 20+ assets
Portfolio LTV
68%  
Historical
Realized Returns

Total IRR
23.7%  
Equity Multiple
2.1x  
Annual Cash
11.1%  
Years Of
Experience

As Principals
30+ years  
In Business
14 years  
Size
9 Staff * Dedicated investor relations
* All information is reported by James Management Group as of 1/17/2020.
Assets Under
Management

Currently
$141MM 10+ assets
Exited
$126MM 20+ assets
Portfolio LTV
68%  
Historical
Returns

Total IRR
23.7%  
Equity Multiple
2.1x  
Annual Cash
11.1%  
Years Of
Experience

As Principals
30+ years  
In Business
14 years  
Size
9 Staff * Dedicated investor relations
* All information is reported by James Management Group as of 1/17/2020.

Financials

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Offering Financial

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Diligence Preview

Location Details

Muncie, IN

Centered between single-family housing, good schools, top tier retail. Target (abuts property to the east), Dick's Sporting Goods, Macy's, JC Penney, TJ Maxx, Kohl's, AMC Movie Theaters. Restaurants: McAlister's, Qdoba, Panera, Buffalo Wild Wings, Outback Steakhouse.

EMPLOYERS:

Less than 1/4 mile to Airpark Center with well over 1,000 jobs.

Documents

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Offering Agreement Documents

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