Tokenized Multifamily Real Estate Investment With A 16.8% Target IRR

A tokenized real estate investment offering is now available for a multifamily townhome community in the Salt Lake City suburb of Ogden, Utah.

The Ranches is a 79-home townhouse rental community built in 2018. It’s located in an economically growing community 40 minutes north of Salt Lake City. The average size of the homes is 1,245 square feet, and community amenities include a gym, playground, dog park and communal spaces.

The tokenized investment is being offered through the HoneyBricks platform with a minimum investment of $1,000.

The Market

Economic growth is driving the demand for real estate in the area, which has seen an influx of young professionals drawn to the job market, affordable cost of living and access to outdoor recreation. Ogden is projected to have a 12% increase in population, a 10.6% increase in jobs and a 12.5% increase in wages over the next five years. 

Investment Highlights

The community’s operator, Orion Real Estate Partners, plans to spend $974,000 on renovations. Planned upgrades include $6,000 per unit dedicated to upgrading kitchens and an additional $4,000 for exterior and commons area improvements. Orion expects the upgrades to allow for a rent increase to a market-matching rate of $1,950. 

Orion is scheduled to begin construction in November on a second phase of the project — an 87-unit addition to the community. A third phase is being considered. The project owners believe the larger unit count will increase the appeal of the asset to institutional investors when it’s put up for sale. 

• Minimum investment: $1,000 (1 token)
• Target internal rate of return (IRR): 16.8%
• Target equity multiple: 1.6x
• Target cash yield: 4.2%
• Target investment term: three years

Deal Sponsor

Orion Real Estate Partners was founded by experienced real estate operators who specialize in the acquisition and management of multifamily investment projects in the Western U.S. The principal partners have been involved in over $3.5 billion worth of transactions over 18,000 multifamily units. 

Orion manages 2,100 units valued at more than $420 million. Since 2016, the group has acquired and managed 2,600 units with a gross value exceeding $400 million in Austin and San Antonio, Texas; Provo, Utah; and Denver.

Learn more about HoneyBricks’ offerings on Benzinga Alternative Investments.