Private Equity Real Estate Investment Offering For Multifamily Acquisition With 19% Target IRR

The real estate investment platform Crowdstreet is hosting a new offering in America’s sunbelt. The Parc 410 Apartments is a 344-unit multifamily community located in Leon Valley, Texas, which is part of the San Antonio submarket. The property will offer residents easy access to the 410 freeway that sees over 200,000 cars pass by every day.

The 410 also offers residents an easy thoroughfare to San Antonio’s most prominent employers, including Valero Energy Corp. VLO, Oracle Corporation ORCL, Merrill Lynch and USAA. The current owner is experiencing financial distress related to rising interest rates and is selling the property off-market. The sponsors can acquire Parc 410 for roughly $122,000 per unit, which represents a tremendous savings on the current market price of $200,000 per unit on comparable developments. 

Investment Highlights

The Parc 410 is being sponsored by LYND LIVING. It is looking to raise $14,828,299 in investor capital that will be pooled with sponsor capital and existing debt to acquire the property. Parc 410’s rents are currently below market, and LYND is seeking to use $5,800,000 to complete deferred maintenance and make capital improvements. That budget also includes a $17,000 per door renovation to upgrade the unit interiors.

The current rental market for the area is showing great strength from the rapid growth taking place in nearby San Antonio. Even though nearly 2,000 new units have been brought online in this West San Antonio submarket, the local occupancy rate has remained steady at roughly 94%. This occupancy rate has remained strong even as rents have gained 15% in 2021 and 2022. 

• Minimum investment: $25,000
• Projected hold period: 3 years
• Projected internal rate of return (IRR): 19.4%
• Projected average annual cash yield: 4.0%
• Projected equity multiple: 1.7x

Interested investors must submit offers by July 27, 2022, and fund them no later than July 29, 2022. Distributions are set to begin in the second quarter of 2023. 

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About the Project Sponsor

LYND is a San Antonio, Texas-based real estate investment firm that focuses on multifamily commercial developments of all kinds. Since LYND was founded in 1980, it has become one of America’s largest management companies. It operates 20,000 units in 11 states. Currently, LYND has nearly $1.8 billion worth of assets under management. 

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Photo: Courtesy of CrowdStreet