Aviary Village & The Cloisters Offering On RealCrowd

The real estate investment platform RealCrowd launched a new offering for a two-property portfolio in metropolitan Myrtle Beach. 

The Cloisters is located in Myrtle Beach, South Carolina, and Aviary Village is 15 miles away in Conway, South Carolina. 

U.S. News & World Report recently ranked Myrtle Beach as the No. 1 Fastest Growing Market in the U.S. The market has seen a 16.3% rent-growth rate over the past year with an additional 10.3% increase projected throughout 2022, according to commercial real estate analytics firm CoStar. 

The two properties have a total of 160 units with an occupancy rate of 99.38% — far above the market rate. The project’s sponsor Aulder Capital has implemented a value-add strategy to bring the rental rate up for the properties, which were built in 1994 and 2000.

An average of $7,743 is being invested into 72.5% of the units for interior upgrades, including upgraded flooring and fixtures and the addition of washer-dryer units. Exterior upgrades are being made, including amenity improvement projects to the clubhouses, swimming pools, fitness center, playground and the addition of outdoor pool-side kitchens and dog parks. 

The average rental rate for the two properties is currently below market at $1,120 per month. Between the value-adding upgrades and the prime location with close proximity to employment hubs, leisure and a major university, Aulder Capital projects to add between $350 and $450 in rent premiums to the existing rate. 

• Minimum investment: $50,000
• Target internal rate of return (IRR): 15.76%
• Target equity multiple: 1.93x
• Target cash yield: 0% year one, 7.03% year three.
• Target investment term: five years

Owner and operator Aulder Capital is a vertically integrated real estate investment management company founded in 2012. The group focuses on opportunistic value-add projects across multiple residential asset classes, including multifamily, single-family, condominiums and short-term rentals across the United States. 

Since the company’s inception, it has acquired over $900 million in total property value across 4,250 residential units. Every year the group targets over $100 million in new acquisitions. Aulder’s managed portfolio includes 20 assets valued at $597.8 million. Aulder’s historical IRR is 18.7% and its equity multiple of 1.51x.

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