Retreat at Stone Mountain
Disclaimer The information contained in this overview and initial plan is considered confidential and is solely for the use of prospective investors to determine the level of interest in the Retreat at Stone Mountain apartment complex located in Atlanta, GA. While the information contained in this overview, plan and model has been compiled from various sources, and we believe it to be reliable based on the data used but neither Ben Suttles, Feras Moussa, or Mark Kenney or its representatives make any representation or warranties as to the accuracy or completeness herein. All financial information and projections are provided for reference only and are based on assumptions relating to the general economy, market conditions, and other factors beyond our control. All prospective investors are encouraged to conduct their own independent due diligence investigation, review, financial projections, and consult with their legal, tax, and other professional advisors before making an investment decision.
Meeting Agenda • Executive Summary • Market Overview • Property Characteristics • Business Plan • Next Steps • Q&A
Sponsor T eam Ben Suttles Feras Moussa Mark Kenney Managing Member Managing Member Managing Member Feras is a serial entrepreneur with a tech Ben is an entrepreneur having owned half a Mark has a passion for real estate and has background. Feras formerly worked as a been investing in real estate for over 20 dozen companies with revenues at $10MM per Program Manager at Microsoft, and is now years and currently owns over 4000 units. year . He has helped syndicate 5 multifamily focused on Multi-Family investing. Feras owns Mark purchased his first real estate property projects, totaling close to 800 doors and a and manages a rental portfolio of 4-plexs, when he was 23 years old. He has also $40MM portfolio value. He recently sold his first single-family homes, and multiple condos, and raised millions of dollars to purchase syndication for over a 300% return in less than properties. has closed over 500 units and $25MM in two and half years, and has raised over $10MM Multifamily acquisitions. in his career for various real estate projects.
Sponsor T eam Josh Benporat David Gerber Juan Vargas Co-Sponsor Co-Sponsor Co-Sponsor Josh grew up in Dallas, however after making the Wit h more than 25 years experience in financial services, Juan has been actively engaged in all aspects of move to Houston in 2012 he proudly calls this city his David was constantly surprised how many clients and real estate sales, investment, management, home. Josh has over a decade of experience in sales colleagues limited their portfolios to stocks, bonds, and financing and construction for more than ten years. and is a licensed attorney in the state of T exas. After cash. T oo many failed to diversify sufficiently into direct He is a licensed commercial agent and has discovering his passion for commercial real estate real estate. For good reason! Even passive investments experience with residential as well as multi- two years ago he shifted his focus to multifamily require a lot of upfront due diligence, even if you can residential, including owning 4 single family homes investing and the rest is history. access deals. David founded Cove Investments to help and owning and operating a 32 unit multifamily individual investors access direct, passive real estate property in the Houston MSA. He is a KP in 90 opportunities, with taxable funds or in their retirement multifamily units in Atlanta and has also invested accounts! passively in 321 multifamily units. Juan was raised with strong family values and is known for his unique ability to uncover apartment investment deals with value add potential.
Executive Summary Average Annualized Returns Capex Improvements 6 Year Return 16%+ $950k ~100% Location High-Demand Management Out of State institutional Current rents are low North ATL location which allows owners who had “hands off” $0.70s/ft. Underwritten residents to enjoy easy access to management style. Provence at $0.82/ft. While I-285 (204,000 vehicles per day), managed deal across the Market average is high which facilitates quick commutes street for years $0.80s/ft and into the to major metro employers. 90’s.
Why Atlanta and Retreat at Stone Mountain • Built in 1983, Retreat at Stone Mountain apartments feature quality construction elements including pitched roofs, covered exterior breezeways, washer/dryer connections, and low- maintenance brick and vinyl exteriors. • Nearby competitors of similar age receive average rents that are $175 to $300 higher than Retreat at Stone Mountain’s average market rent. • Atlanta is expected to add 43,200 jobs in the next twelve months. MPF’s forecast calls for increases in organic rent growth of +3.3% over the next year • Home to nearly 5.9 million residents, Metro Atlanta is the largest metro in Georgia and the ninth-largest metro area in the United States. • Greater Atlanta’s population is forecast to grow 9.6% over the next five year’s surpassing 6.4 million residents
Market Overview The Atlanta Metropolitan Statistical Area’s total population now exceeds 5.9 million people and has grown 79% since 1990, making it the nation’s ninth-largest MSA and one of its fastest growing. Atlanta is expected to add 43 43,200 200 jobs jobs in • the next twelve months. T op 5 projected job growth metro through • 2020. The massive 29-county region is also • home to 15 Fortune 500 companies, 66 institutions of higher learning, and the busiest airport in the world in terms of annual passengers.
Apartment Market Overview SUBMA BMARKET RKET OVERVI RVIEW EW • Retreat is located within one of the top performing submarkets in the Atlanta MSA. • The Stone Mountain submarket saw a 5.5% annual rent growth in Q2 2018. This rent growth is a result of no new supply in the area and the submarket’s proximity to Atlanta. • Supply-demand imbalance fuels submarket fundamentals, bolstering property Year 1 projections are $916/unit performance trends and indicating strong future organic growth
Nearby Entertainment East st Lake ke Golf lf Club b - a private golf club that is the Stone e Mounta ntain in Park rk - Its centerpiece is the world’s largest exposed piece of granite and is oldest golf courses in the city of Atlanta. the number one tourist attraction in Georgia. Visitors can travel to the summit and explore North Dekalb lb Mall l - is a 635,000 SF center of the park’s 3,200 acres of lakes and woodlands shopping, dining, and entertainment destinations. which features, boat rides, adventure and climbing areas, plantation, Civil War museum, laser show, and carillon. Wade-Walker- is DeKalb’s largest park and recreational facility. The park features baseball, Northla lake ke Mall l - 1.0 million SF is anchored by softball, soccer, tennis, as well as street hockey. The Macy’s, Sears, and JCPenney, and also has more park also provides a swimming pool, playgrounds, than 100 other retailers. picnic areas, pavilions, a lake, and walking trails. The Fernbank Museum of Natural History- 8 million dollar exhibit which includes dinosaur skeletons and an IMAX theater.
Nearby Entertainment Ston one e Moun untain ain Park rk East t Lake ke Golf f Club Northlake lake Mall
Nearby Employers Retreat at Stone Mountain
MIDTOWN Emory University and CDC HQ DECATUR Marta Rail GSU Perimeter College Memorial Bend H a m b r i c k R o a d Retreat at Stone Mountain
Property Summary 400 Ashley Place, Stone Mountain, GA Address 30083 1983 Y ear Built 212 Units 238,140 T otal SF 1,123 Avg Unit Size Land Size (acres): 19.7 Physical Occupancy 95%
Highlights • Negotiated off market. Purchased at less than $67k/door. • Property is well kept, but not well managed. There is both a management and value-add play. • 1983-built asset features desirable construction features including brick and pitched roofs. • The asset features 100% two-and three-bedroom spacious roommate-style floorplans (averaging 1,123 SF). • Market-supported organic rent increase based on rent comp set. • Had 6 fire units recently, these were rehabbed nicely and were quickly leased up for a $100 premium • Property next door is a 100% replica of property, same builder. Next door property has rents in the $0.90s/ft. • 100%+ total return in 6 years, on conservative underwriting, with 8 pref and 75/25 split.
Floor Plans TWO BEDROOM / / ONE BATH GARDEN TWO BEDROOM / / TWO BATH GARDEN TWO BEDROOM / / TWO BATH GARDEN 1,029 Square Feet 1,096 Square Feet 1,058 Square Feet
Floor Plans THREE BEDROOM / TWO BATH GARDEN THREE BEDROOM / TWO BATH GARDEN 1,278 Square Feet 1,310 Square Feet
Property Characteristics- Interiors Upgraded unit
Property Characteristics - Interiors Classic Unit
Property Characteristics- Exteriors
Property Characteristics - Exteriors
Property Amenities • Swimming Pool • Gated Access • Office • Two Playgrounds • Picnic Areas • Sport Court • Washer/Dryer Connections in all units
Property Amenities
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