Opportunistic Multifamily Real Estate Investment Offering Now Funding

A new private market real estate investment opportunity is available to investors on the RealtyMogul platform. 

The Carling on Frankford represents an equity offering for a class B multifamily property comprising 274 units in Carrollton, Texas.

The sponsor of the offering, ClearWorth Capital, acquired the property as part of an off-market transaction from a distressed seller at a per-unit rate below comparables within the market providing perceived value and downside protection. 

ClearWorth intends to implement a comprehensive value-adding strategy to enhance building interiors, exteriors and operational practices. With high-end comparable properties in the area achieving hundreds more per unit in monthly rent, ClearWorth expects the renovations to enable them to reprice the asset to match that of the market. 

A total budget of $2.9 million, or $10,585 per unit, is allocated to the capital expenditure program which includes $1.5 million designated for unit interiors and $1.4 million for building exteriors. Interior improvements will include, but are not limited to, new paint, granite countertops, sinks, and backsplashes for 40% of the units, while 70 units will receive washer/dryer units.

• Minimum investment: $35,000
• Sponsor's targeted internal rate of return (IRR): 23.1%
• Target cash on cash: 5.5%
• Target equity multiple: 1.82x
• Target investment term: three years

Click here to access offering docs >>

ClearWorth Capital is a Texas-based real estate investment firm specializing in the multifamily asset class, with offices in Houston and Dallas. The group has extensive experience in acquiring underperforming assets at a value and, through enhancements to the property and operational practices, improving rent-generated cash flows.

ClearWorth's managing partner, Matthew Stone, has been the principal in development and renovation projects totaling over $2 billion in value across 37 projects. Specifically, with multifamily assets, Stone has acquired and renovated 50 multifamily projects with a combined value nearing $1 billion.

The Carling on Frankford equity investment offering is available on the RealtyMogul platform with a minimum investor contribution set at $35,000.

Photo: Courtesy of RealtyMogul