RealCrowd Launches Value-Add Multifamily Real Estate Investment Offering With a 27.89% Target Annual Return

Real estate crowdfunding platform RealCrowd just launched its latest value-add multifamily investment offering from seasoned sponsor LURIN, with a 27.89% target internal rate of return (IRR).

Villas at Tenison Park is a 442-unit Class C multifamily property in the fast-growing market of Dallas, Texas. The sponsor intends to extensively renovate the apartments and improve operations to transform the asset into a solid Class B property.

The sponsor plans to invest roughly $13.5 million into the renovations, which is expected to yield an average rental increase of $345 per month per unit.

LURIN expects the property to be stabilized by June 2023, at which point it intends to begin quarterly distributions to investors from the free cash flow. The sponsor then plans to sell the property at the end of the target three-year hold period.

Investment Highlights: Dallas is one of the fastest-growing and best-performing markets for multifamily housing in the country. The metropolitan area ranked number one in the U.S. for population growth in 2020 as well as number one for population growth between 2010 and 2020.

The East Dallas submarket, where Villas of Tenison is located, has a substantial shortage of renovated rental housing with a strong demand for market-rate multifamily units.

LURIN already owns and operates two properties within a quarter-mile of Villas at Tenison Park, providing the ability to immediately reduce operating expenses by sharing management and maintenance costs between the three properties and improving operational efficiencies.

• Minimum investment: $50,000
• Target IRR: 27.89%
• Target equity multiple: 2.03x
• Stabilized cash on cash: 4.82%
• Target investment term: 3 years

View the full details of this offering on RealCrowd

Deal Sponsor: LURIN is a fully integrated real estate investment firm that specializes in acquiring and renovating distressed Class B and Class C multifamily properties. The company currently owns 8,338 units with a value of approximately $1.7 billion and has generated an average IRR of 34% across 11 full-cycle transactions.

Glossary of Terms Used in This Article

Stabilized Cash on Cash: The annual cash distributions received once the property is stabilized in relation to the amount of capital invested.

Equity Multiple: The total return achieved on an investment, calculated by dividing the total dollars received by the total dollars invested.

Free Cash Flow: The cash remaining from the revenue generated by the property after operating expenses and capital expenditures.

Internal Rate of Return (IRR): The average annual return over the lifetime of an investment.

Photo: Courtesy of RealCrowd