Thrive & Canopy Multifamily Equity Investment — Fully Funded
A Geo-Diversified 330-Unit Portfolio of Class B Apartments in Two Thriving Class A Locations, San Antonio, Texas and Tempe, Arizona. Funded February 2022.
Why This Opportunity
Location
North San Antonio: flight from high-priced Austin = projected population growth of 10% in the next five years.
Tempe: next to Arizona State University's (ASU) main campus.
Great Upside
Two Class B properties in Class A locations.
Total estimated return at over 90%.
Sponsor Experience
Proven track record of achieving over 40% IRRs on their full cycle investments.
About the Cities
San Antonio
1.9% Annual Population Growth in 2021.
Job growth rate of 5.7% in 2021 Q4.
Shortage of inventory is causing home ownership cost to increase 18.1% year-over year.
Phoenix
1.48% Annual Population Growth in 2021.
#3 in the nation for wage increases at 4.6%.
Historically low vacancy of 4.0%.
“Due to the high investor demand on this opportunity, the $15.8 million total raise went quickly.”
What we loved about this opportunity
Phoenix continues to be a strong multifamily market. It reached 25.7% year-over-year rent growth September 2021. Thrive Tempe is located near Arizona State University's (ASU) main campus, and ASU is a driving force behind Arizona's economy.
Due to affordability, there is a rising trend of people moving out of Austin and into North San Antonio. The targeted submarket is seeing unprecedented growth and Yardi analysts predict a 10%+ organic rent increase within a mile radius of the prospective property, The Canopy. The median household income within a mile radius is a healthy $60K/year and the projected population growth is 10% in the next five years.
Business plan: lower utility expenses, renovate then lease up new units, burn off non-market rate leases, add W/D to remaining units, and add controlled WIFI access.
Investor Return Highlights
Estimated 90%+ return on capital over a 5-year time horizon — investors also receive pass-through depreciation.
90% +
Investor Total Return Before Tax Benefits
7%
Investor Preferred Cash-on-Cash Annual Return Before Tax Benefits
15+ %
Investor IRR
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