This investment is open to Accredited Investors only.

 

MINIMUM INVESTMENT

Class A: $100,000

Class B: $50,000

Class A/B Combination: $100,000

 

WIRE DEADLINE

Within 3 days of signing the PPM

 

FOR MORE INFORMATION

Ellie Perlman

ellie@bluelake-capital.com

(401) 477-9804

 

Jeannette Robinson

jeannette@bluelake-capital.com

(210) 740-5431

Investment Requirements

Conservative Agency Loan*

Principal Balance

$62,058,362

Loan to Purchase Price

77%

Interest Rate

2.86%

Fixed or Adjustable

Fixed

Interest Only

48 months

Term

10 years

Amortizing Period (Years)

30

Debt Financing

Investment Highlights

Cap (T12)

Reversion Cap

Expense Ratio (T12)

Occupancy (as of 8/13/20)

DSCR

Purchase Price

Hold Time

Equity Required (Total)

Equity Required (LP-Class A)

Class A IRR and Avg. Annual Return

Class A Investor Equity Multiple

Equity Required (LP-Class B)

Class B Investor Average Annual Return**

Class B Investor Equity Multiple

Class B Investor Average Annual Return***

Class B Internal Rate of Return (IRR)

4.78%

5.28%

38%

91%

2.31

$80,025,000

5 years

*$19,950,000

$3,300,000

9%

1.45x

$16,650,000

7.2%-7.5%

1.77x

15.31%

14%-15%

* Subject to change **Excludes proceeds from sale

***Includes proceeds from sale

ELEMENT 41

Opportunity Overview

Blue Lake Capital has identified Element 41, a 494-unit multifamily property located in 991 Wylie Rd, Marietta, GA 30067 for acquisition (“Property”). Blue Lake Capital is extending Investors the opportunity to invest in a Element 41 Investors LLC, an entity that has been created to acquire the fee simple interest of the Property.

 

The Property is a 1988 institutional-quality asset that enjoys an exceptional A location, unparalleled amenity package, with ample space for tenants to spend time outside their apartment in a safe way, and an interior renovation opportunity. The business plan is to renovate and modernize the unit interiors in order to better compete with nearby properties while increasing rental rates and mitigating risk by pursuing a conservative fixed-rate agency loan of 77% LTV while capitalizing on today’s disproportionately low interest rates.

 

Cash flow distributions to investors will be available monthly from rental and other operation incomes of the Property to the extent after expenses, working capital reserves have been allocated.  Investors will receive the cash distribution first.  Blue Lake will be paid after a 7% and 9% annualized cash return are distributed to our Class A and Class B investors.

 

Blue Lake will hold the Property for 5 years to maximize growth in equity value from operating income.  Alternatively, Blue Lake may refinance the acquisition debt in order to return most investor equity while continuing to realize returns.  The increase to the net operating income is anticipated to come from an interior renovation program that has already been initiated by the current owner. 

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ELEMENT 41

INVESTMENT PACKAGE OVERVIEW

MARRIETTA, GA 

494 UNITS

5 YEAR HOLD

VALUE-ADD

PROJ RETURNS 13% IRR

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Supporting Documents

This investment is open to Accredited Investors only.

PROJECTED RETURNS

 

PROPERTY SUMMARY

 

BUSINESS PLAN HIGHLIGHTS

PROFORMA

RENT COMPS

SALES COMPS

FINANCIAL ANALYSIS