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

Nova Appian Preferred Income Fund I

Northeast U.S.

Multi-Family Fund
OneWall Partners LLC Newark, NJ
OneWall Partners LLC
  • IRR 11-13%
  • Equity Multiple 1.4x
  • Hold Period 5Y
  • Minimum Investment $100K
  • Year 1 Cash on Cash 6%
  • Stabilized Cash on Cash 20%
  • First Distribution Apr 2020
  • Distribution Frequency Quarterly
  • Co-Investment 5%
  • Preferred Return 9%
  • Investor Profit Share 80%
  • Asset Profile Value Add
  • Loan-to-Value 70-80%
  • Current Occupancy N/R

About this Fund

Fund Type Multifamily
Investment Timing Equity called upon close
Market(s) Northeast U.S.
Target Fund Size $50MM
Amount Raised $20M
Amount Deployed $10M projected by 12/31/19*
Date Opened for Investments December 2019
Est. Time to Next Investment Less than 1 month
Est. Time to Initial Distribution 4 months
*All funds raised from this offering are expected to be deployed by year-end and start accruing returns. As new investments are added to the portfolio, ownership stakes will be rebalanced so that all investors own their pro rata share of each investment. For example, if you make a $100,000 investment that initially equates to 2% ownership in each of two $5M investments and the Fund adds two additional $5M positions you would then own 1% in each of four investments and so on.

 

Why are you pursuing this fund strategy?

There is an expanding supply and demand imbalance between the number of affordable workforce apartments and the growing workforce in the United States is favorable for value-added apartment investments. This gap in the market is especially acute in the northeast and creates ample opportunity to invest in durable, cash flowing properties. The preferred fund structure benefits from short duration, recession-resistant, consistent risk-adjusted returns and quarterly cash yield to investors while supporting investments that enhance quality of life for current and future residents.

 

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

The Fund invests in walkable, transit-oriented urban communities and lifestyle-oriented suburban communities with value-add potential and close proximity to major employment centers and unaffordable housing. These investments represent preferred membership interests in properties that are acquired, owned, operated, managed and/or controlled by OneWall and its affiliates. The Fund seeks to provide geographic, asset, risk and resident diversification and utilizes defined risk-adjusted pricing for each investment to generate returns that are uncorrelated with the stock market.

 

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

OneWall leverages the favorable macro and micro environments for workforce housing investments and employs its MULTI-FAMILY ALPHA® strategy to maximize value, mitigate risk and deliver superior results from effective acquisition, financial and operational value-add business plans. They buy right, invest in deferred maintenance and value-add capex to sustain long-term rent growth and high occupancy and optimize cost structure to reduce expenses and/or reduce expense growth.

 

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

  1. Track Record: Sponsor has produced consistent returns while demonstrating expertise in sourcing, screening, financing, managing, rehabilitating, developing and selling workforce housing assets.
  2. Recession-Resistant: The workforce housing asset class benefits from massive supply-demand imbalance and strong social and demographic tailwinds; all of which are particularly significant in the northeast U.S.
  3. Immediate Yield/Short Duration Cash on Cash: 100% of portfolio investments generate immediate cash yields of 6%+ with investment hold periods of 1-5 years that generate short duration return of capital and profits to potentially deliver 20%+ cash on cash returns in years 2 through 5 to Fund investors.

 

Are there any unique aspects to the fund or your investment strategy that will help to create value for investors?

  1. This Fund is perhaps the only pure play, commingled preferred equity investment vehicle managed by a vertically-integrated owner operator that exclusively targets workforce housing in the northeast and has made the Fund available publicly to individual high net worth investors.
  2. The preferred structure is designed to create a significant margin of safety to deliver the targeted returns regardless of the market environment and the fees and waterfall are very favorable to investors (1% management fee and 80/20 split above 9%+ preferred hurdle).
  3. The submarkets OneWall operates in are typically less competitive, undervalued secondary markets close to more competitive, highly priced markets and the firm generates superior deal flow from off-market and pocket listings.

 

How are risks being mitigated during the hold period?

  • All investments are in the preferred equity layer of the capital stack which puts the Fund first in line to get paid after the senior lender.
  • The last dollar of preferred equity is capped at 87.5% LTC so even if asset value declines over time, the preferred can be paid in full.
  • All investments made by the Fund have a contractual current pay quarterly distribution that accrues if unpaid. This serves to repay and de-risk the equity investment on an immediate and ongoing basis.
  • Interest rates on senior debt are either fixed or capped for at least the scheduled length of the preferred investment holding period.
  • OneWall is a vertically integrated owner operator of multifamily workforce housing so it and/or its affiliates have asset management and/or property management control over the assets in the Fund with staff on the ground directly overseeing properties and controlling the value chain of each deal.

About this Fund

Fund Type Multifamily
Investment Timing Equity called upon close
Market(s) Northeast U.S.
Target Fund Size $50MM
Amount Raised $20M
Amount Deployed $10M projected by 12/31/19*
Date Opened for Investments December 2019
Est. Time to Next Investment Less than 1 month
Est. Time to Initial Distribution 4 months
*All funds raised from this offering are expected to be deployed by year-end and start accruing returns. As new investments are added to the portfolio, ownership stakes will be rebalanced so that all investors own their pro rata share of each investment. For example, if you make a $100,000 investment that initially equates to 2% ownership in each of two $5M investments and the Fund adds two additional $5M positions you would then own 1% in each of four investments and so on.

 

Why are you pursuing this fund strategy?

There is an expanding supply and demand imbalance between the number of affordable workforce apartments and the growing workforce in the United States is favorable for value-added apartment investments. This gap in the market is especially acute in the northeast and creates ample opportunity to invest in durable, cash flowing properties. The preferred fund structure benefits from short duration, recession-resistant, consistent risk-adjusted returns and quarterly cash yield to investors while supporting investments that enhance quality of life for current and future residents.

 

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

The Fund invests in walkable, transit-oriented urban communities and lifestyle-oriented suburban communities with value-add potential and close proximity to major employment centers and unaffordable housing. These investments represent preferred membership interests in properties that are acquired, owned, operated, managed and/or controlled by OneWall and its affiliates. The Fund seeks to provide geographic, asset, risk and resident diversification and utilizes defined risk-adjusted pricing for each investment to generate returns that are uncorrelated with the stock market.

 

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

OneWall leverages the favorable macro and micro environments for workforce housing investments and employs its MULTI-FAMILY ALPHA® strategy to maximize value, mitigate risk and deliver superior results from effective acquisition, financial and operational value-add business plans. They buy right, invest in deferred maintenance and value-add capex to sustain long-term rent growth and high occupancy and optimize cost structure to reduce expenses and/or reduce expense growth.

 

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

  1. Track Record: Sponsor has produced consistent returns while demonstrating expertise in sourcing, screening, financing, managing, rehabilitating, developing and selling workforce housing assets.
  2. Recession-Resistant: The workforce housing asset class benefits from massive supply-demand imbalance and strong social and demographic tailwinds; all of which are particularly significant in the northeast U.S.
  3. Immediate Yield/Short Duration Cash on Cash: 100% of portfolio investments generate immediate cash yields of 6%+ with investment hold periods of 1-5 years that generate short duration return of capital and profits to potentially deliver 20%+ cash on cash returns in years 2 through 5 to Fund investors.

 

Are there any unique aspects to the fund or your investment strategy that will help to create value for investors?

  1. This Fund is perhaps the only pure play, commingled preferred equity investment vehicle managed by a vertically-integrated owner operator that exclusively targets workforce housing in the northeast and has made the Fund available publicly to individual high net worth investors.
  2. The preferred structure is designed to create a significant margin of safety to deliver the targeted returns regardless of the market environment and the fees and waterfall are very favorable to investors (1% management fee and 80/20 split above 9%+ preferred hurdle).
  3. The submarkets OneWall operates in are typically less competitive, undervalued secondary markets close to more competitive, highly priced markets and the firm generates superior deal flow from off-market and pocket listings.

 

How are risks being mitigated during the hold period?

  • All investments are in the preferred equity layer of the capital stack which puts the Fund first in line to get paid after the senior lender.
  • The last dollar of preferred equity is capped at 87.5% LTC so even if asset value declines over time, the preferred can be paid in full.
  • All investments made by the Fund have a contractual current pay quarterly distribution that accrues if unpaid. This serves to repay and de-risk the equity investment on an immediate and ongoing basis.
  • Interest rates on senior debt are either fixed or capped for at least the scheduled length of the preferred investment holding period.
  • OneWall is a vertically integrated owner operator of multifamily workforce housing so it and/or its affiliates have asset management and/or property management control over the assets in the Fund with staff on the ground directly overseeing properties and controlling the value chain of each deal.

Offered By

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Assets Under
Management

Currently
$534MM 40+ assets
Exited
$116MM 20+ assets
Portfolio LTV
67%  
Historical
Realized Returns

Total IRR
17.4%  
Equity Multiple
1.4x  
Annual Cash
10%  
Years Of
Experience

As Principals
30+ years  
In Business
10 years  
Size
6 Staff * Dedicated investor relations
* All information is reported by OneWall Partners LLC as of 11/17/2019.
Assets Under
Management

Currently
$534MM 40+ assets
Exited
$116MM 20+ assets
Portfolio LTV
67%  
Historical
Returns

Total IRR
17.4%  
Equity Multiple
1.4x  
Annual Cash
10%  
Years Of
Experience

As Principals
30+ years  
In Business
10 years  
Size
6 Staff * Dedicated investor relations
* All information is reported by OneWall Partners LLC as of 11/17/2019.

Financials

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Offering Financial

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Location Details

Northeast U.S.

OneWall is a seasoned investment manager whose Preferred Income Fund is designed to deliver diversified, superior risk-adjusted returns from its proven investment niche targeting transit and lifestyle-oriented workforce housing in the northeast U.S. The walkable, urban communities and convenient suburban communities targeted offer superior appreciation potential and stability since the investment basis is well below replacement cost and the assets are close to major employment centers with limited supply of affordable housing.

One Wall leverages the favorable macro and micro environments for workforce housing investments and employs its MULTI-FAMILY ALPHA® strategy to maximize value, mitigate risk and deliver superior results from effective acquisition, financial and operational value-add business plans.· Workforce housing is a recession-resistant asset class benefiting from massive supply-demand imbalance and strong social and demographic tailwinds.

  • Workforce housing is a recession-resistant asset class benefiting from massive supply-demand imbalance and strong social and demographic tailwinds.
  • The Fund offers geographic, asset, risk and resident diversification; defined risk-adjusted pricing for each investment and returns uncorrelated with the stock market.
  • 100% of portfolio investments generate immediate cash yields of 6%+ with investment hold periods of 1-5 years that generate short duration return of capital and profits.
  • Documents

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    Offering Agreement Documents

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