ASHBY GROVE SW, ATLANTA, GA 30314
Background
Our latest property investment offering is a multi-family low rise apartment building located within the Atlanta Beltline Overlay District - Westside Trail. The property consists of 4 units located within walking distance of Atlanta University Center and a short drive to Mercedes Benz Stadium.
The property is located within the Beltline Overlay District Subarea 1 within the recently completed Atlanta Beltline Westside Trail. The property is surrounded by future use City of Atlanta and private developments including Westside's Bellwood Quarry, Mercedes-Benz Stadium, Lee + White Food District and Washington Park.
Details
| Project Type | Value Add |
| Property Type | 4 Unit Multi-Family |
| Layout | 4 x 3 Beds / 1 Bath |
| Construction Type | Brick |
| Purchase Price | $100k |
| Renovation | $260k |
| Class | B |
Valuation
| BPO Rents 3 Bed | $1,200/month |
| Total Annual Rents | $57,600 |
| Total Annual Expenses | $11,988 |
| Cap Rate | 8% |
| Value | $580,000 |
Investment
| Total Capital Required | $103,680 |
| Investment Period | 12 months |
| IRR for Investors | 20% |
| Equity Multiple | 1.2x |
| Minimum Investment | $20,000 |
| Property Closing | 12/21/18 |
Funds Due | 12/18/18 |
Value Add
The property is currently abandoned and in need of full modernization. Each unit will have all new electrical, plumbing and HVAC installed. Each unit will also be finished to a high standard including quartz countertops, tiled bathrooms, hardwood floors and stainless steel appliances. HTW Properties will manage all subcontractors directly through its Project Management team.
Contact us for more information.
Atlanta's Urbanization
Metro Atlanta's growth rate is surpassing that of most other top 10 cities. Those are the findings of recent US Census data that forecast Atlanta climbing to No.8 in terms of metro populations by 2022, overtaking Philadelphia.
The Atlanta Beltline - is the most comprehensive transportation and economic development effort ever undertaken in the City of Atlanta and among the largest, most wide-ranging urban redevelopment programs currently underway in the United States.
Subsections
Completed in 2012, Subsections 4 & 5 saw a 400% increase in property values.
Recently completed Subsections 1 & 10 have already seen a 200% increase.
FT500 Corporations
No.23 Home Depot
No.44 UPS
No.87 Coca-Cola
No.75 Delta Air
No.125 Aflac
No.303 Suntrust Bank
No.409 NCR Group
Development
Westside Bellwood Quarry
Mercedes-Benz Stadium
Lee + White Food District
Transit
Bankhead Marta
Vine City Marta
Ashby Marta
Education
Georgia Institute of Technology
Morehouse College
Spelman College
The Business Plan
The Sponsor plans to purchase the property for $100,000. The property is a 3110sqft, two- story brick building consisting of 4 three-bedroom apartments.
The Sponsor plans to fully renovate all apartments, in existing layouts, with new modern kitchens, quartz countertops, stainless steel appliances, modern bathrooms, in unit washers and dryers, Nest thermostats, new entryways and renewed outdoor space with private parking for each unit. The duration of the construction period will be 6 months.
On completion of the construction the asset will be stabilized by leasing up all units through the Housing Choice Voucher Program, a Federal Housing and Urban Development (HUD) Scheme where rents a underwritten by the US Government. The property will then be listed for sale on the open market including LoopNet, Zillow, FMLS and MLS with specific targeting towards institutional investors looking for 8% cap rate returns. The duration of the leasing period will be 3 months.
Investors will receive their original equity investment plus 20%/pa return on the sale of the property. As with any investment there is always risk the property may not sell. If the property has not sold after the 12 month investment period net rents will be aportioned to investors until the property is sold. The duration of the listing period will be 3 months.
Investment Period 12 months.
Downside Protection
The Property is being purchased at a price 50.0% below replacement costs or the cost it would take to buy the land and build new today. This low price per square foot allows the Sponsor to achieve a more attractive cap rate to institutional investors while also staying competitive against other apartments that may try to enter the marketplace. The Sponsor was able to negotiate the purchase price at a discount due to their reputation as a Sponsor with a flawless track record for closing.
Positive Market Fundamentals
In the coming fiscal quarters, the “renters mentality” is expected to continue in the Atlanta apartment market. The population still views renting as favorable to homeownership as housing prices continue to grow at a robust pace. This is expected to continue, especially if there is an increase in rates as expected. Demand for affordable, centrally located, urban Class B multifamily units shows no signs of slowing.
The Sponsor
HTW Properties, LLC is a privately owned firm focused on value-added and opportunistic real estate investments. Committed to receiving superior returns, the firm seeks development opportunities in primary and secondary markets that display increased demand and stable growth potential. Through their extensive network and hands-on approach, HTW is able to acquire and develop well-located real estate poised for long- term growth. A unique aspect of HTW lies in their ability to self manage the construction process with an experienced team of Project Managers lead by founder Timothy Hayes. Tim collaborates with Architects, Engineers, and Contractors during all phases of project development and construction.
Tim brings over 15-years of experience in the management of real estate development projects. With an emphasis on construction management, Tim has overseen more than 1 million SF of construction at a cumulative cost over a 100 million dollars. Project experience has covered a broad spectrum of construction types including rehabilitation, out of the ground, and structural additions.
HTW Properties is a licensed Real Estate Broker in Atlanta and Alabama through their qualifying broker Jan-Marie Elder. Jan-Marie manages all aspects of the property management of the acquisition including securing qualified tenants for the units. She has many years experience in the multi-family market in Atlanta and also teaches a class on behalf of the FMLS.
Timothy Hayes
Jan-Marie Elder
Contact us to invest in this property or to receive more information.
Accredited Investor
The securities offered, except where otherwise indicated, may only be purchased by Accredited Investors, as defined by Rule 501 of Regulation D under the Securities Act of 1933, as amended. Federal law and regulations restrict investment in any of the securities offerings by non-accredited investors. Before you can invest in any securities offerings, you must register and qualify as an “Accredited Investor”, except where otherwise indicated. Prior to investing, you may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify your status as an accredited investor. You acknowledge and agree that all information you provide for the registration is complete and accurate. By registering with the Platform for purposes of subscribing to securities offerings as an Accredited Investor, you represent and warrant that you come within at least one of the following categories:
- a natural person who has individual net worth,
- or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of your primary residence;
-Explanation: In calculating net worth, you include all of your assets (other than your primary residence) whether liquid or illiquid, such as cash, stock, securities, personal property and real estate based on the fair market value of such property MINUS all debts and liabilities (other than a mortgage or other debt secured by your primary residence unless the liability exceed the fair market value of your primary residence).
-a natural person with income exceeding $200,000 in each of the two most recent
years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year;
-a bank, insurance company, registered investment company, business development company, or small business investment company;
-an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
-a charitable organization, corporation, or partnership with assets exceeding $5 million; -a business in which all the equity owners are accredited investors; or
-a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
-YOU MUST MEET ONE OF THE ABOVE CRITERIA TO INVEST IN ANY OFFERING POSTED ON CROWDSTREET AND PROVIDE THIRD PARTY VERIFICATION. WE ARE ENTITLED TO AND WILL RELY UPON YOUR REPRESENTATIONS. You agree that, should any material changes occur that might affect your status as an Accredited Investor, you shall immediately provide HTW Properties with such information in writing.
