This is an opportunity to invest in a series of Project Payment Dependent Notes tied to the performance of a 13,353 square foot value-add retail property located in Miami’s emerging Wynwood neighborhood. Atlas Real Estate Partners is purchasing the asset at an attractive basis of $275/SF in comparison to other properties that have traded for as much as $390/SF. Aside from purchasing the property at a discount, Atlas Real Estate Partners has already added significant value by leasing 50% of this previously vacant building and securing signed LOIs for the remaining 50%. The strong cash flows result in an average debt/preferred equity coverage ratio of 1.31x over the 3-year term.
Interest payments on the notes will be tied to the distribution schedule under the terms of the preferred equity investment, as follows:
*all accrued interest will be paid out at maturity
The preferred equity investment into Atlas will be $1,850,000, which represents approximately 43% of the total capital of the project. The investment will be junior to a loan of $2,021,250 and senior to $421,987 of equity.
|Capital Senior to Fundrise||1-49%||1|
|Capital Junior to Fundrise||10-19%||4|
|Sponsor’s Track Record||$250 million or more||1|
|Preferred Equity||Fundrise Offering||43.1%||$1,850,000|
The property is a 13,353 square foot retail building divided into four spaces measuring approximately 3,300 square feet each. Each space has its own dedicated loading dock, a highly desirable amenity for galleries and other tenants that deal with inventory. Additionally, the property contains 13 available private parking spaces; a unique amenity not found at other former warehouse spaces in Wynwood. These features along with a recent gut renovation, and site amenities will allow the sponsor to attract high quality tenants.
|Address||2301 North Miami Ave|
|Property Size||13,353 square feet|
2301 North Miami Ave. is conveniently located in Wynwood, just south of the Design District, north of Downtown Miami and west of Miami Beach situated just over the causeway. Wynwood contains over 70 art galleries, retail stores, antique shops, eclectic bars, and has one of the largest open-air street-art installations in the world. Developers have rehabilitated neglected warehouses, shuttered factories, and other unused buildings, transforming them into the numerous art complexes, galleries, performing art spaces, restaurants, cafes, and other creative businesses that are seen there today.
Recent market news: Wynwood: Soho South (The Real Deal)
Atlas Real Estate Partners is a private real estate investment firm focused on value-add and core-plus investments in multifamily, student-housing, retail, and office assets throughout the United States. Atlas has a dedicated team in each target market that is focused on deal sourcing, project management and property operations and each team uses its existing relationships and extensive market knowledge to acquire assets at a low basis, and control repositioning costs through intensive project management. Over the past three years, Atlas has closed 24 acquisitions with a total capitalization of more than $350 million in numerous markets including Florida, New York, Texas, Massachusetts, Illinois and Utah. Atlas is based in New York City and led by Managing Principals Arvind Chary and Alex Foster.