The Retreat at Salt Lake is a 424 unit, two-story garden-style apartment community located in Salt Lake, Utah. Built in 1973, the property is situated on a 40.40 acre rectangular site with ample green space and mature trees providing a density of 10.57 units per acre. The Property consists of 41 wood frame constructed buildings with brick exteriors and pitched roofs with asphalt shingles. There are two entrances to the Property, one via Tencent Road and the other off of Google Drive. Both entrances lead prospective and current residents directly to the clubhouse.
Preferred Return: 12%
Purchase Price: $32,000,000
Total Offering: $10,000,000
Sponsor Co-Investment: $2,000,000
Minimum Investment: $100,000
Management Fee: 1.5%
Carried Interest: 15%
The Retreat at Salt Lake represents a strong value-add opportunities in a highly desirable submarket with high barriers to entry for new apartment developers. With no new planned supply within a five mile radius and no new apartment homes built in Farmington Hills or surrounding Class A suburbs since 2003, market fundamentals suggest pent-up demand for renovated apartment homes. Sponsor intends to implement an $9.35M ($22,052/unit) capital improvement program that includes interior upgrades to all 424 units, significant amenity updates and meaningful exterior improvements (thirty year dimensional shingle roof and HardiePlank® siding, siding, windows, parking lots, landscaping, clubhouse, etc.). The intended capital improvements are projected to drive average monthly rent growth of $244/unit, or a 25.5% increase over current market rents.
Sponsor believes that the required investment to upgrade unit interiors will lead to immediate rent and NOI growth, as well as a significant long-term increase in residual value. Planned interior renovations include new solid wood espresso cabinets in the kitchens and bathrooms with self-close drawers and soft close doors, quartz countertops, vinyl wood plank flooring, modern backsplash, new stainless steel appliances, installation of full-size washer/dryers and all new brushed nickel fixtures throughout. Sponsor has also allocated $3.1M ($7,229/unit) of the capital improvement budget to exterior and amenity upgrades, including all new roofs, balconies/railings and windows, among other items.
Sponsor believes this to be an attractive opportunity for the following reasons:
- Purchase price is substantially below replacement cost
- Upside creation opportunities through longer-term, more credit-worthy tenants
- New outparcel development and sale opportunity
- Grocery-anchored, necessity-based tenants that are in large part internet resistant
- In-place cash flow
Though the Property only requires typical tenant improvements and is currently 77% occupied, substantial upside remains with 18,472 SF immediately available to lease as well as the opportunity to replace Let’s Skate (26,000 SF), who is paying below market rent, with the landlord’s ability to terminate. Sponsor is currently exploring the possibility of incorporating a fitness center into the current tenant mix, and even further upside is available with the potential development, sale, or ground lease of an outparcel located along Fifth Avenue, next to one of the center’s five points of ingress/egress.
The Manager may determine that additional capital is needed to fund tenant improvements in order to attract or retain tenants at the Property. Sponsor, however, have committed to fund up to $2M of any additional tenant improvements needed by making additional capital contributions to the Manager, which will then contribute that additional capital to Property Owner.
CFO
Managing Director
Collectively, members of Sponsor’s leadership team have over 50 years’ experience in all aspects of commercial real estate, including acquisition, asset management, leasing, equity and debt investing, capital markets brokerage, executive management and tenant representation. Sponsor’s client and partner roster includes many fortune 700 companies including Google, Adobe, Provo, and numerous ultra high net worth individuals and family offices.
Sponsor’s team has tailored over $8 billion in transactions combined nationwide with a strong emphasis on value-add retail and office acquisitions throughout the Southeast. Sponsor has purchased and/or sold over $400 million in transactions throughout the southeast. Acquisitions have primarily focused on value-add investment opportunities in the retail and office sectors, where Sponsor’s expertise was utilized in stabilizing assets and selling them at a substantial premium to purchase price and invested costs.
Investments focused on stabilizing asset value from leasing, minor redevelopment, capital expenditure investment, expense management or other property specific value-add strategy. Sponsor’s focus is on 3-5 year investments in Class A & B properties in major MSA Utah markets including southeast Utah, Salt Lake, St. George and Provo.
How many deals has this sponsor done?
Please refer to our "Team" section or the "Documents" section as this information can vary for different sponsors. We as a platform only work with sponsor's that have at least $25mm AUM and have been in operation for over 10 years.
How long does it take for funds to be processed?
We have different payment processing options. Wire Transfers are typically updated within 1-2 business days upon receipt. ACH or Credit Card transactions take 3-5 business days to settle in the escrow account for the offering. Checks are dependent upon when they were put in the mail and when they are received by our escrow agent.
Why are my funds sent to an escrow account?
An escrow account helps our firm ensures that we are able to properly handle any investment transactions. Funds are disbursed from escrow based on different factors that are specific to the offering/deal.
THIS COMMUNICATION SHOULD NOT BE REGARDED AS A RECOMMENDATION, AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY ANY FINANCIAL PRODUCT. 123 MAIN ST HAS CREATED A NON-SCREENED OFFERING PAGE ON THE ELITE INVESTMENT GROUP WEBSITE. ELITE INVESTMENT GROUP HAS NOT PERFORMED ANY SCREENING, DUE DILIGENCE, OR INFORMATION VERIFICATION OF NON-SCREENED PROFILES. ADDITIONALLY, ABC BROKER IS NOT ASSISTING WITH RAISING CAPITAL OR RECEIVING ANY COMPENSATION FROM ANY COMPANY WITH A NON-SCREENED PROFILE. ALL INVESTMENT INVOLVES RISK OF LOSS OF ENTIRE INVESTMENT, AND PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
