RealtyMogul: Brookside Apartments

Real estate investment platform RealtyMogul announced the pledging window for an equity investment in a multifamily community in the Raleigh, North Carolina metropolitan statistical area (MSA) is open. 

The Brookside Apartments is a 68-unit multifamily complex originally constructed in 1986. The property offers considerable upside through the housing demand in one of Raleigh’s highly sought-after submarkets and the value-add strategy being implemented by offering sponsor RealtyMogul (RM) Communities.

The business plan includes a beautification project that will enable RM Communities to raise rents to align with comparable properties in the market. The property’s seller has renovated 37 units to RM Communities' standards. The remaining units will have approximately $13,500 allocated toward upgrading appliances, flooring, countertops and cabinetry. The exterior also will be refreshed to enhance curb appeal while the existing laundry facility will be converted into a fitness center. The renovations will allow RM Communities to increase the average renting rate by $200 to $300 per unit per month.

Raleigh is one of the fastest-growing metros in the country. According to the United Nations Population Services, Raleigh is projected to become the second-fastest-growing large city in the U.S. between 2015 and 2030. Brookside Apartments lies in a submarket with strong demographics. The average household income within a 2-mile radius of the property is just under $100,000.

• Minimum investment: $20,000
• Target internal rate of return (IRR): 16.6%
• Target equity multiple: 1.75x
• Target cash yield: 7.3%
• Target investment term: four years

Project sponsor RealtyMogul Communities is the direct acquisition arm of RealtyMogul. RealtyMogul operates an online technology platform that allows members to invest in affiliated and unaffiliated real estate companies, resulting in the acquisition of approximately $5.9 billion of real estate assets, including over 29,000 apartment units.

View RealtyMogul Offerings

Photo courtesy of RealtyMogul