Real Estate Crowdfunding Offering Now Available for New Multifamily Development Project With a 20.1% Target Annual Return

Real estate crowdfunding platform CrowdStreet has announced a new offering in the form of Seaton Preserve, a multifamily development project located in Jacksonville, Florida, that uses an innovative and affordable prototype build, boosting the targeted internal rate of return (IRR) to an attractive 20.1%.

The deal sponsor has budgeted $52.9 million for the project and is raising just over $16.6 million (plus contributing over $1.8 million of their own capital) to cover the equity requirements. The 240-unit multifamily complex is set to be built, leased and stabilized by the sponsor throughout the next 3 years.

Investment Highlights: The property is located between two single-family neighborhoods, close but not near the Jacksonville Airport, providing excellent travel and job opportunities. Seaton Preserve will comprise eight, 30-unit, 3-story buildings based on the Summit/G-4 building concept that’s more cost-efficient and innovative than most other traditional means.

Seaton Preserve will appeal to renters looking for a high-quality mid-rise community with an attractive amenity package in a desirable location. With an average unit size of 1,025 square feet, the property will provide a unit mix of one- (40%), two- (50%) and three-bedroom (10%) floor plans.

The two-parcel, 12.09-acre site will feature upscale community amenities such as a 5,217 square foot community clubhouse, resort-style pool with fire-pit lounge, high-end fitness center with yoga studio, green spaces, BBQ and picnic areas, a dog park and pet spa and an on-site lifestyle director with concierge services.

The deal sponsor is assuming a three-year hold with a 4.75% exit cap, resulting in a disposition value of $68.5 million or $285,582 per unit.

• Minimum investment: $25,000
• Target IRR: 20.1%
• Target equity multiple: 1.7x
• Target average cash yield: 5.2%
• Target investment term: 3 years

View more details for this offering on CrowdStreet

Deal Sponsor: Republic Properties Corporation is a Washington, D.C.-based, privately held, full-service real estate investment, management and development firm.

Republic has focused on institutional-quality real estate for over 40 years, managing partnerships and other agreements to construct residential, office, multi-purpose and industrial projects across the United States.

The company has created and invested in real estate transactions totaling over 27 million square feet and exceeding $7 billion in value.

Photo courtesy of CrowdStreet