Our Our New In Inves estmen ment Of Offer ering ing - - PowerPoint PPT Presentation

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Our Our New In Inves estmen ment Of Offer ering ing - - PowerPoint PPT Presentation

Our Our New In Inves estmen ment Of Offer ering ing Pineridge Farms Payson, Utah Chad Warner Bruce Warner Managing Partner Managing Partner Master Multifamily Master Multifamily Everyone will be muted during webinar Hou House


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Our Our New In Inves estmen ment Of Offer ering ing

Pineridge Farms Payson, Utah

Chad Warner Managing Partner Master Multifamily Bruce Warner Managing Partner Master Multifamily

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Hou House e Keep eepin ing

  • Everyone will be muted during webinar
  • The core presentation will take 45 minutes
  • Please write down questions
  • There will be a 15-minute Q&A at the end of the presentation

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Master Multifamily’s investment information is intended for accredited investors only who are approved Master Multifamily investors and familiar with and willing to accept the risks associated with private investments. Securities sold through private placements are not publicly traded and are intended for investors who do not have a need for liquidity in their investment. Master Multifamily does not make investment recommendations, and no communication through this presentation or in any other medium should be construed as such. Investment opportunities will be "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Any financial projections or returns shown in these educational materials are estimates of future performance only and are not guarantees of future results. Any investment information contained herein has been secured from sources that Master Multifamily believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees and expenses. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed in these materials, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment

  • pportunity.

This presentation is not an offer to sell. Presentation is provided as an educational opportunity until PPM is prepared.

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Master Multifamily Team

We are a family-oriented company devoted to your financial

  • success. Building on our base competency in real estate, our

external business partners possess deep expertise in multifamily housing. We own real estate in six states: Texas, Arizona, Georgia, Indiana, Utah, and Alabama https://mastermultifamily.com/about/

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Project Summary

  • New 100-unit construction (sold in

blocks of 4)

  • 32 units available for purchase
  • $175,000/unit purchase price
  • $62,000/unit equity raise
  • Potential for stable income and equity

growth*

*Based on Master Multifamily research and experience

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Location Summary

  • Located within Provo-Orem, UT market

(14 minutes to Provo tech jobs & 30 minutes to Silicon Slopes employment hub)

  • Within top 10 fastest population

growth markets in the nation (3.1x national average)*

  • 3.6x national average job growth**
  • Not Within Opportunity Zone

*US Census Bureau, Real Estate Center at Texas A&M University **Bureau of Labor Statistics

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Multifamily Fundamentals

  • There are 67.5 million aged 20-34 in the

U.S.

  • About 60-70% of those people rent.

This number is expected to grow over the next 30 years.

  • Adults in their 50s and 60s, the baby

boomers, accounted for most of the increase in the number of multifamily units both before and after the housing crisis.

  • Apartments are an evergreen business

model.

*US Census Bureau, Real Estate Center at Texas A&M University **Bureau of Labor Statistics

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Dem emogr graphi phics

  • The 20-34 age group is the single

largest age group that rents

  • There are over 67.5 million people

aged 20-34 in U.S.

  • Currently, 60-70% of those people

rent

  • This number is expected to grow
  • ver the next 30 years

Source: US Census Bureau 8

*Source: Harvard Joint Center for Housing Studies 2017

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Po Population Increasing Ho Home e Owner wnership hip Dec ecreas easing ing

*US Census Bureau from NMHC-NAA-US-Apartment-Demand 2030. Multifamily market information is general in nature and provided for educational purposes only. It may not reflect the performance of the project.

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Real Estate Returns

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  • Cash Flows from Rents
  • Depreciation Tax Shield
  • Appreciation
  • Principal Paydown by Tenants
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Real Estate Risk Adjusted Returns vs Alternate Investments

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20-Year Return and Risk Profile Across Major Asset Classes

Source: Thomson Reuters Datastream. Data from 3Q 1993 – 2Q 2013. The indices used for each asset class are: Government bonds, Bank of America Merrill Lynch Treasury Master; Corporate bonds Baa-rated, Barclays US Aggregate Corporate Intermediate; Core Real Estate, NCREIF Property Index (NPI), NCREIF Fund Index – Open-End Diversified Core Equity (NFI-ODCE); Large capitalization stocks, Russell 1000 index; Small capitalization stocks, Russell 2000 index; Commodities, S&P GSCI Commodity Index. The risk-free rate is the 10-year US Treasury note yield.

Real Estate

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  • Market & Submarket Analysis
  • Location (Neighborhood, Site) Analysis
  • Exterior/Interior Photos and Unit Mix
  • Team, Project Return Estimates, and Next

Steps

Pr Project Details

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Market

  • Population

652,000

  • Population Growth

2.2% vs 0.7% national average

  • Labor Force Growth Forecast

1.9% vs 0.5% national average (5 yrs.)

  • Median Household Income

$79,199 vs $64,339 national average

  • Unemployment

2.4% vs 3.5% national average

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Market

  • One of the most diverse economies

in the US

  • Utah County is the fastest growing

economy in Utah

  • Many, many large employers within

commuting distance

  • Silicon Slopes tech hub
  • Current jobs 274,000 projected to

grow at 1.66% vs 0.45% national average

  • Landlord friendly government and

tax environment

  • Low violent crime rate

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*Infograph by UV360

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Project Location

  • Several major employers in the area
  • High technology hub in northern part of Utah

County

  • Utah Valley University (UVU) and Brigham

Young University (BYU) campuses nearby

  • Close access to Mountain View Hospital
  • Near Utah Lake and mountains
  • Large football stadium and fine arts on BYU

campus

  • Stadium of Fire event held each summer

Largest stadium fireworks show in America

  • Close to Payson Canyon and Nebo Loop
  • Within proximity to religious centers
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Transportation

  • FrontRunner commuter rail station to be built very close
  • Nearby access to I-15
  • Provo Airport within

20 minutes

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Drive Times to Major Destinations

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Location Miles Drive Time Regional Shopping Hub 5 5 Minutes Provo Metro Employment Center 14 14 Minutes Provo Airport 17 18 Minutes Brigham Young University 16 18 Minutes Utah Valley University 19 20 Minutes Silicon Slopes Tech Hub 35 30 Minutes

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Vacancy Rates

*Source: CoStar, February 2020

Overall Vacancy Stabilized Vacancy

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Site Plan

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Floor Plan

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Amenities

  • Stainless steel appliances and upgraded lighting package
  • Playground and grilling area
  • Clubhouse
  • Revenue Upsides
  • Hi-tech package
  • Washer and dryer packages
  • Pet fees

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Past Developer Projects

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Past Developer Projects

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Management and Transaction Team

  • Acquisitions & Asset Management – Master Multifamily
  • Property Management – Maxx Property Management
  • 7% management fee, acquiring new tenants costs $150
  • HOA covers: exterior insurance, landscaping, snow removal, water, garbage collection, exterior electric, exterior

maintenance, basic cable and internet

  • Electric and natural gas are metered separately and paid for by tenants
  • Tenant leases will require interior contents insurance
  • Transaction and SEC Attorney – Joshua Irvine, Ogden Utah
  • Title Company – US Title
  • Lending – Utah Bank
  • Accounting, Tax, and Investor Reporting – Naylor & Warner, CPAs, Salt Lake City Utah
  • Cost Segregation Study – Cost Segregation Consultants, Draper Utah
  • Mutually Beneficial Collaboration – 37th Parallel Properties

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Strategy Highlights*

  • Refinance when it makes sense, but likely around year 8
  • Consider installing refurbished cabinets and granite

countertops on a trial basis

  • Evaluate sale based on market trends
  • Exit strategies
  • Cash out refinance
  • Section 1031 exchange
  • Sell and distribute principal and capital gain
  • See PPM for individual exit ramp description

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*Based on Master Multifamily investment objectives. Past performance is no guaranteed of future results. There are no assurances that the manager’s objectives will be realized. There is no guarantee of capital gain on sale.

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Estimated Cash Flows from $500,000 Investment

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The Members will be entitled to receive a preferred return in the amount equal to 7% cumulative non- compounded annual return on their unreturned Capital Contributions in accordance with the distribution of the operating agreement. Distributions

  • f cash flow are not guaranteed, subject to available

cash and will likely be lower than the preferred return in the early stages of the project. Any accrued and unpaid preferred return (if any) will be paid prior to return of capital and any promote to the sponsor. See PPM for more information. Based on Master Multifamily investment objectives. Past performance is no guaranteed of future results. There are no assurances that the manager’s

  • bjectives will be realized. There is no guarantee of

capital gain on sale.

Projected Internal Rate of Return

11.79%

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Projected Overall Returns Matrix

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The overall annualized return of the investment could vary based on market fundamentals outside of the S ponsor’s control. As cap rates decrease, overall property value increases. As cap rates increase,

  • verall property values decrease. Net Operating Income (NOI) is impacted by average market rent growth rates. As rent growth rates increase, NOI and ultimately value increases. As rent growth slows

down, NOI growth and ultimately value growth slows down. The blue rectangle represents the estimated annualized return and multiple on invested capital based on expected Market Rent Growth and C ap Rate at sale. The estimated cumulative average growth rate (C AGR) and multiple on invested capital (MOIC ) – 9.5% and 2.47 respectively are net of all sponsor fees.

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Next Steps

Take the next step with us.

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Investment Process

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  • 1. Contact Bruce, Kristi, or Chad to discuss your

circumstances

  • 2. Verify qualifications to invest with Master Multifamily
  • 3. Notify us of the amount you would like to invest, assuming

you are satisfied with the opportunity

  • 4. How to invest will be specifically explained in the Private

Placement Memorandum; execute a subscription agreement; retirement fund rollovers (IRA/401K/etc.) will be accepted

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Master Multifamily, LLC 801-916-6494 info@mastermultifamily.com mastermultifamily.com

Co Contac act t in info:

Set up Voxer and Sharefile Accounts by calling us Go to the About Us page on our website to set appointments

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Qu Questio tions? s?