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

Solano Vista

Glendale, AZ

Multi-Family Property

Only 1 spot left to invest

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Sundance Bay Salt Lake City, UT
Sundance Bay
  • IRR 19.4%
  • Equity Multiple 2.08x
  • Hold Period 3-5Y
  • Minimum Investment $50K
  • Year 1 Cash on Cash 3.4%
  • Stabilized Cash on Cash 11.8% in Y3
  • First Distribution Nov 2020
  • Distribution Frequency Quarterly
  • Co-Investment 5%
  • Preferred Return 8%
  • Investor Profit Share 70%
  • Asset Profile Value Add
  • Loan-to-Value 80%
  • Current Occupancy 97%

About this Property

Address 7102 North 43rd Ave.
Square Footage 173,700 sq. ft.
# of Units 352
Year Built 1974
Current Occupancy 97%
Market Occupancy 95%
Current Average Rents $628
Average Market Rents $1,010
Purchase Price $30,750,000
Price/SF $177

Why you are buying the Property?

The property presents an opportunity to purchase an asset at below replacement cost to employ our ‘bread and butter’ strategy of multifamily value add in a market with high barriers to entry, and excellent population and job growth. The property has very high occupancy but rents are below market rates, providing a natural opportunity to push rents. We have already been able to achieve $75+ rental increases on lease renewals on units without renovations. Since this is our sixth investment in the area, we have hit the ground running with our proven management and renovation team. There is rental rate upside in both better managing and marketing the asset to potential renters and performing renovations.

 

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

We will renovate unit interiors to market standards as they become available and project to lease them at rates in line with market standards. The management team will also immediately begin pushing rents on classic units as they are below market rates while aiming to maintain high occupancy. The primary goal is to increase the asset’s value through property improvements and better onsite management. Once the asset is stabilized, the plan is to exit in year 3 – 5.

 

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

  1. Bring below market rents up to market rates on renewals.
  2. Renovate and increase rents on outdated interior units.
  3. Address deferred maintenance, and improve existing amenities.

 

How are risks being mitigated during the hold period?

  • Proven Team: Solano Vista is our sixth multifamily investment in the Phoenix market. We have a proven management and renovation team who has successfully executed on our previous investments in the market.
  • Conservative Rent Increases: Rather than targeting to achieve the highest rents in the neighborhood, we project conservative rent increases that are below or in line with comparable properties.
  • Purchase Below Replacement Cost: We like to acquire assets at a significant discount to replacement cost to provide ample cushion when executing our value add strategy.

About this Property

Address 7102 North 43rd Ave.
Square Footage 173,700 sq. ft.
# of Units 352
Year Built 1974
Current Occupancy 97%
Market Occupancy 95%
Current Average Rents $628
Average Market Rents $1,010
Purchase Price $30,750,000
Price/SF $177

Why you are buying the Property?

The property presents an opportunity to purchase an asset at below replacement cost to employ our ‘bread and butter’ strategy of multifamily value add in a market with high barriers to entry, and excellent population and job growth. The property has very high occupancy but rents are below market rates, providing a natural opportunity to push rents. We have already been able to achieve $75+ rental increases on lease renewals on units without renovations. Since this is our sixth investment in the area, we have hit the ground running with our proven management and renovation team. There is rental rate upside in both better managing and marketing the asset to potential renters and performing renovations.

 

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

We will renovate unit interiors to market standards as they become available and project to lease them at rates in line with market standards. The management team will also immediately begin pushing rents on classic units as they are below market rates while aiming to maintain high occupancy. The primary goal is to increase the asset’s value through property improvements and better onsite management. Once the asset is stabilized, the plan is to exit in year 3 – 5.

 

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

  1. Bring below market rents up to market rates on renewals.
  2. Renovate and increase rents on outdated interior units.
  3. Address deferred maintenance, and improve existing amenities.

 

How are risks being mitigated during the hold period?

  • Proven Team: Solano Vista is our sixth multifamily investment in the Phoenix market. We have a proven management and renovation team who has successfully executed on our previous investments in the market.
  • Conservative Rent Increases: Rather than targeting to achieve the highest rents in the neighborhood, we project conservative rent increases that are below or in line with comparable properties.
  • Purchase Below Replacement Cost: We like to acquire assets at a significant discount to replacement cost to provide ample cushion when executing our value add strategy.

Offered By

Sundance Bay

Sundance Bay

Salt Lake City, UT

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Assets Under
Management

Currently
$356MM 10+ assets
Exited
$118MM less than 10 assets
Portfolio LTV
56.7%  
Historical
Realized Returns

Total IRR
36.1%  
Equity Multiple
2.51x  
Annual Cash
3.3%  
Years Of
Experience

As Principals
30+ years  
In Business
6 years  
Size
25 Staff * Dedicated investor relations
* All information is reported by Sundance Bay as of 7/8/2019.
Assets Under
Management

Currently
$356MM 10+ assets
Exited
$118MM less than 10 assets
Portfolio LTV
56.7%  
Historical
Returns

Total IRR
36.1%  
Equity Multiple
2.51x  
Annual Cash
3.3%  
Years Of
Experience

As Principals
30+ years  
In Business
6 years  
Size
25 Staff * Dedicated investor relations
* All information is reported by Sundance Bay as of 7/8/2019.

Financials

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Offering Financial

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Location Details

Glendale, AZ

Situated in a centrally located and transitioning area of Phoenix, the 352-unit Solano Vista complex boasts close proximity to major transportation modes and the area’s numerous employment, entertainment and recreation options. Residents enjoy convenient accessibility to work, shop and relax. Glendale is well placed to continue to grow over the next few years with several plans for continued development, including the Certerline District and recently completed Tanger Outlets.

Documents

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Offering Agreement Documents

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