New Multifamily Investment Offering In High-Growth Market With 18.7% Target Returns

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

A new offering is now live on RealtyMogul’s real estate crowdfunding platform for the Idlewood Park Apartments in Houston, Texas, with an 18.7% target return.

The 268-unit multifamily property is located in one of the country’s fastest-growing cities, which Moody’s projects will have the largest population gain in the U.S. from 2020-2025 with 550,000 additional residents, according to RealtyMogul. 

The offering sponsor, Parawest Group has owned and operated the property since 2013 and is recapitalizing the project to renovate the property and take advantage of the value add potential still remaining in the asset. 

The sponsor anticipates being able to increase rents by roughly 9% across all units once renovations are completed. The company has budgeted $750,000, or $2,799 per unit, for interior renovations and $800,000 for exterior improvements. 

Investment Highlights: A recent appraisal gives the property an as-is value of $24,460,000 while the opportunity is being presented to investors based on a discounted value of $23,000,000. The sponsor plans to sell the property in four years at an expected cap rate of 5.5%. 

• Minimum Investment: $35,000
• Target IRR: 18.7%
• Target Cash on Cash Return: 5.9%
• Target Equity Multiple: 1.97x
• Target Investment Term: 4 years

View offering details on RealtyMogul

Deal Sponsor: ParaWest Group has participated in the acquisition of 23 properties totaling over 3,800 units since its inception in 2012 and the company’s principals have participated in over 20 acquisitions in the Houston Market since 2010.

Want To Be The First To Know About New Investment Opportunities? Gain access to the same investment offerings on which institutions and billionaire investors are earning 20% to 30% or higher annual returns.

While real estate crowdfunding is giving individual investors access to private deals that have historically been out of reach, many of the most lucrative deals are fully funded before the average investor ever has a chance to get involved.

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Photo: Courtesy of RealtyMogul

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.