Fully Subscribed: Southern States Multifamily Portfolio

Huntsville, AL and Robinsonville, MS
Deal Size $24,400,000
Proj. IRR 17-20%
Proj. Hold 2-3 yrs

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The Southern States Multifamily Portfolio oversubscribed in only three business days.

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Southern States Multifamily Portfolio

Benefits of the Investment

  • Market Diversity: Combining properties from multiple markets balances and reduces potential risk that a single market could endure.
  • Customized Repositioning: To increase occupancy and overall income generated, each property will receive a custom-tailored business plan with targeted physical or operational improvements such as property management and marketing.
  • Low Cost Basis: By combining multiple low cost properties, there is an opportunity to realize additional profit through competitive rental rates and eventual sale of the Portfolio.

Location and Employment

  • The Portfolio has three properties with 607 units combined: “Twickenham” and “Hillside” properties is in Huntsville, AL and “Gardens of Canal Park” is in Robinsonville, MS.
  • Twickenham and Hillside sit two miles north of Redstone Arsenal, a U.S. Army post with an average workforce of 40,000. Huntsville is home to Marshall Space Flight Center — the largest NASA complex — which supports more than 16,000 jobs.
  • Robinsonville is the sixth largest gaming market in the U.S., employing 5,500 people and attracts visitors from nearby Memphis. Expanding beyond gaming, there have been a growing number of manufacturing jobs due to aggressive tax incentives.

Increasing Property and Rental Value

  • Twickenham & Hillside will receive professional property management and substantial physical improvements, including exterior renovations, interior unit upgrades and renovations to common areas.
  • Gardens of Canal Park will undergo an operational overhaul. This includes focusing on experienced property management to attract and ensure maximum rental occupancy.
Capitalization $24,400,000
Proj. IRR 17% - 20%
Proj. HOLD 2-3 years

Funded Transactions

Clinton Hill Multifamily Portfolio

New York, NY | Multifamily

The Clinton Hill Multifamily Portfolio is a 79-unit, 3-building prewar apartment portfolio located in the Brooklyn neighborhood of Clinton Hill. The deal was funded in a little over 2 months and gut renovations for the interior and exterior have already begun.

  • Property Acquired | September 2016
  • Deal Size | $36.9M
  • Funded | January 9, 2017
  • Projected IRR | 12-15%
  • Projected Hold | 4-5 years
  • Sponsors | AMAC and Stone Street Properties

1413 York Avenue

New York, NY | Multifamily

1413 York Avenue is a six-story, mixed-use apartment building located in Manhattan’s Upper East Side. Oversubscribed in less than 2 weeks, the deal has also refinanced and distributions were made to investors months ahead of schedule.

Unit interior renovations are 95% complete with the remainder expected to be completed in the upcoming weeks. Many renovated units are garnering higher rents than initially projected, demonstrating a strong rental market in an extremely desirable location.

  • Property Acquired | April 2015
  • Deal Size | $10.3M
  • Funded | July 29, 2016
  • Projected IRR | 12-15%
  • Projected Hold | 3-5 years
  • Sponsors | AMAC and Stone Street Properties

Past Transaction Highlights

ArborCrowd deal sponsor — Arbor Management Acquisition Company (AMAC) — has acquired over 5,500 multifamily units since it was founded in 2012. AMAC has experience across all types of investment strategies, including stabilized, distressed, value-add and ground-up development opportunities.

Henson Creek Manor

Fort Washington, MD Multifamily
Operational efficiencies were implemented post acquisition to improve NOI. Additionally, AMAC received approval and closed the refinance of the acquisition loan with a HUD loan, which provides for a 35 year term at a fixed interest rate of 3.50%. The HUD loan also returned approximately 75% of the invested equity in the transaction.
Units 210
Capitalization $24M
Acquired June 2015

160 Van Brunt Street

Brooklyn, NY Commercial
AMAC in a joint venture with LIVWRK and First Market Properties acquired and redeveloped a 98,000-square-foot warehouse in Brooklyn's fast growing neighborhood of Red Hook. TESLA Motors was signed as a tenant and recently opened a ground floor showroom and service center in the space.
Square Feet 98,000
Capitalization $47M
Acquired July 2014

Beltway Transaction

Suitland, MD Multifamily
Initially a five property portfolio, AMAC successfully executed the simultaneous purchase of two of the properties (759 units) and assignment and sale of three of the properties (429 units) to a third party on the day of closing. Since acquisition, AMAC has increased NOI by 50% during the first 24 months and returned in excess of 80% of the invested equity in the transaction.
Units 1,188
Capitalization $95M
Acquired February 2013

Southeast Portfolio

Columbia, SC/Houston/Dallas Multifamily
AMAC was able to complete the off-market acquisition of a large distressed portfolio in a very compressed timeframe. Once acquired, AMAC completed an extensive $10M rehabilitation that increased occupancy from approximately 80% to in excess of 90% and NOI by more than 200%. Since acquisition, the investment has returned more than 3.0x the invested equity.
Units 1,956
Capitalization $39M
Acquired May 2013
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