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

Decatur Flats

Decatur, GA

Multi-Family Property
Rincon Partners, LLC Phoenix, AZ
Rincon Partners, LLC
  • IRR 14.7-16.2%
  • Equity Multiple 1.7-1.9x
  • Hold Period 5Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 7.7-9.2%
  • Stabilized Cash on Cash 12.5% in Y3
  • First Distribution Mar 2021
  • Distribution Frequency Quarterly
  • Co-Investment 53.0%
  • Preferred Return 10.0% IRR
  • Investor Profit Share See Financials
  • Asset Profile Value Add
  • Loan-to-Value 81.8%
  • Current Occupancy 92.0%

About this Property

"Decatur Flats (the “Property”) is an off-market opportunity to acquire a 92-unit, Class-B+ multifamily property near one of Atlanta's hottest neighborhoods, Decatur, GA. The Property has fully renovated unit interiors that carry significant rental upside, provides high proforma cash-on-cash returns, and is located near Atlanta's ‘Eds and Meds’ Corridor which has 65,000 educational and medical jobs, 2 universities, and 6 medical/research campuses."

-Rincon Partners

 

Address 3145 Misty Creek Dr,
Square Footage 95,840 sq. ft.
# of Units 92
Year Built 1988
Year Renovated 2019/2020
Current Occupancy 92.0%
Market Occupancy 94.0%
Current Average Rents $1,322/unit
Average Market Rents $1,412/unit
Purchase Price $13,879,800
Price/Sq. Ft. $145/Sq. Ft.

Top Questions

All answers are provided by the sponsor, Rincon Partners, or its representatives.

 

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

Rincon Partners:

  • “The Property has fully renovated unit interiors and is being acquired for $150,867 per unit, which compares favorably to recent sales comps that have not undergone such extensive renovations."
  • "The Property is located within 4 miles of Atlanta's ‘Eds and Meds Corridor’ which is a significant demand driver and home to over 65,000 medical/research and educational jobs including the CDC, Emory University, and Children's Healthcare of Atlanta."
  • "The Property's monthly rental rates for fully renovated units are estimated to be $50 to $100 below market compared to similarly renovated comps in the submarket."
  • “The Property is expected to deliver proforma cash-on-cash returns of 8.7% year 1 and an average of 11.7%.”

 

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

Rincon Partners:

  • “Rincon intends to renovate the building exteriors by installing new hard-plank Masonite boards (versus the current vinyl siding) and painting the buildings to significantly improve the property’s outside appearance and bring it in line with the Property’s high-end interior finishes. Rincon believes that the improved exterior appearance will drive rent increases.”
  • "Rincon is focused on improving operations at the Property and plans to grow rents organically by turning in-place leases that were made at lower rates due to the previous ongoing interior renovation process to market rates, which are currently estimated to be $50 to $100 higher."

 

How has COVID-19 impacted your business plan?

Rincon Partners: "Since March, Rincon Partners believes the Property has performed well in spite of the pandemic. It has maintained average occupancy of 92.3% between March and July and bad debt has averaged 1.0% of rent collections during that period. The forecasted rent growth is based on recent market reports that incorporate what Rincon believes are the impacts of the pandemic and the economic weakness it has spawned. However, Rincon Partners will continue to monitor the COVID-19 situation and proactively manage the property to mitigate the impacts of COVID-19 as much as possible."

 

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

Rincon Partners: "The near-term and long-term consequences of the COVID-19 pandemic are still uncertain, but Rincon believes that an investment in multifamily housing will outperform other investment opportunities as the economy improves. Housing is a necessity, not discretionary. The property's recent financial performance demonstrates that this investment appears less impacted by the shock of today's events."

NOTE: All answers provided by the sponsor, Rincon Partners, or its representatives.

About this Property

"Decatur Flats (the “Property”) is an off-market opportunity to acquire a 92-unit, Class-B+ multifamily property near one of Atlanta's hottest neighborhoods, Decatur, GA. The Property has fully renovated unit interiors that carry significant rental upside, provides high proforma cash-on-cash returns, and is located near Atlanta's ‘Eds and Meds’ Corridor which has 65,000 educational and medical jobs, 2 universities, and 6 medical/research campuses."

-Rincon Partners

 

Address 3145 Misty Creek Dr,
Square Footage 95,840 sq. ft.
# of Units 92
Year Built 1988
Year Renovated 2019/2020
Current Occupancy 92.0%
Market Occupancy 94.0%
Current Average Rents $1,322/unit
Average Market Rents $1,412/unit
Purchase Price $13,879,800
Price/Sq. Ft. $145/Sq. Ft.

Top Questions

All answers are provided by the sponsor, Rincon Partners, or its representatives.

 

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

Rincon Partners:

  • “The Property has fully renovated unit interiors and is being acquired for $150,867 per unit, which compares favorably to recent sales comps that have not undergone such extensive renovations."
  • "The Property is located within 4 miles of Atlanta's ‘Eds and Meds Corridor’ which is a significant demand driver and home to over 65,000 medical/research and educational jobs including the CDC, Emory University, and Children's Healthcare of Atlanta."
  • "The Property's monthly rental rates for fully renovated units are estimated to be $50 to $100 below market compared to similarly renovated comps in the submarket."
  • “The Property is expected to deliver proforma cash-on-cash returns of 8.7% year 1 and an average of 11.7%.”

 

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

Rincon Partners:

  • “Rincon intends to renovate the building exteriors by installing new hard-plank Masonite boards (versus the current vinyl siding) and painting the buildings to significantly improve the property’s outside appearance and bring it in line with the Property’s high-end interior finishes. Rincon believes that the improved exterior appearance will drive rent increases.”
  • "Rincon is focused on improving operations at the Property and plans to grow rents organically by turning in-place leases that were made at lower rates due to the previous ongoing interior renovation process to market rates, which are currently estimated to be $50 to $100 higher."

 

How has COVID-19 impacted your business plan?

Rincon Partners: "Since March, Rincon Partners believes the Property has performed well in spite of the pandemic. It has maintained average occupancy of 92.3% between March and July and bad debt has averaged 1.0% of rent collections during that period. The forecasted rent growth is based on recent market reports that incorporate what Rincon believes are the impacts of the pandemic and the economic weakness it has spawned. However, Rincon Partners will continue to monitor the COVID-19 situation and proactively manage the property to mitigate the impacts of COVID-19 as much as possible."

 

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

Rincon Partners: "The near-term and long-term consequences of the COVID-19 pandemic are still uncertain, but Rincon believes that an investment in multifamily housing will outperform other investment opportunities as the economy improves. Housing is a necessity, not discretionary. The property's recent financial performance demonstrates that this investment appears less impacted by the shock of today's events."

NOTE: All answers provided by the sponsor, Rincon Partners, or its representatives.

Offered By

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Assets Under
Management

Currently
$249.1MM 10+ assets
Exited
$102MM less than 10 assets
Portfolio LTV
70%  
Historical
Realized Returns

Total IRR
26.4%  
Equity Multiple
1.5x  
Annual Cash
7%  
Years Of
Experience

As Principals
20+ years  
In Business
5 years  
Size
15 Staff * Dedicated investor relations
* All information is reported by Rincon Partners, LLC as of 8/19/2020.
Assets Under
Management

Currently
$249.1MM 10+ assets
Exited
$102MM less than 10 assets
Portfolio LTV
70%  
Historical
Returns

Total IRR
26.4%  
Equity Multiple
1.5x  
Annual Cash
7%  
Years Of
Experience

As Principals
20+ years  
In Business
5 years  
Size
15 Staff * Dedicated investor relations
* All information is reported by Rincon Partners, LLC as of 8/19/2020.

Financials

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Offering Financial

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Diligence Preview

Location Details

Decatur, GA

Rincon Partners: "The property is located directly off of Atlanta's Interstate 285 with direct access to all of Atlanta's major office submarkets as well as quick surface-street access to the Atlanta CBD. The property sits off of McLendon Drive which serves as primarily am single-family residential street and is located near property's assigned elementary school."

Documents

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Offering Agreement Documents

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