Thrive & Canopy Multifamily Equity Investment — Fully Funded

A Geo-Diversified 330-Unit Portfolio of Class B Apartments in Two Thriving Class A Locations, San Antonio, Texas and Tempe, Arizona. Funded February 2022.

Why This Opportunity

Location

North San Antonio: flight from high-priced Austin = projected population growth of 10% in the next five years.
Tempe: next to Arizona State University’s (ASU) main campus.

Great Upside

• Two Class B properties in Class A locations.
• Total estimated return at over 90%.

Sponsor Experience

Proven track record of achieving over 40% IRRs on their full-cycle investments.

About the Cities

San Antonio

• 1.9% Annual Population Growth in 2021.
• The job growth rate of 5.7% in 2021 Q4.
• Shortage of inventory is causing homeownership costs to increase 18.1% year-over-year.

Phoenix

• 1.48% Annual Population Growth in 2021.
• #3 in the nation for wage increases at 4.6%.
• Historically low vacancy of 4.0%.

“Due to the high investor demand on this opportunity, the $15.8 million total raise went quickly.”

— Brock & Chris

What we loved about this opportunity

Phoenix continues to be a strong multifamily market. It reached 25.7% year-over-year rent growth in September 2021. Thrive Tempe is located near Arizona State University’s (ASU) main campus, and ASU is a driving force behind Arizona’s economy.

Due to affordability, there is a rising trend of people moving out of Austin and into North San Antonio. The targeted submarket is seeing unprecedented growth and Yardi analysts predict a 10%+ organic rent increase within a mile radius of the prospective property, The Canopy. The median household income within a mile radius is a healthy $60K/year and the projected population growth is 10% in the next five years.

Business plan: lower utility expenses, renovate then lease-up new units, burn off non-market rate leases, add W/D to remaining units, and add controlled WIFI access.

Investor Return Highlights

Estimated 90%+ return on capital over a 5-year time horizon — investors also receive pass-through depreciation.

90% +

Investor Total Return Before Tax Benefits

7%

Investor Preferred Cash-on-Cash Annual Return Before Tax Benefits

15+ %

Investor IRR

Canopy Gallery

Thrive Gallery