|Current Ann. Return||12.0%|
|Accrued Ann. Return||+
|Gross Ann. Return*|
|Current Ann. Return||12.0%|
|Accrued Ann. Return||+ 0.0%|
|Gross Ann. Return*||12.0%|
|Term Remaining||0 of 60 mo.|
|Underlying Security||Preferred Equity|
This is an opportunity to invest in a series of Notes tied to the performance of a preferred equity investment in The Commons at Pilot Butte, 204-unit stabilized garden-style multifamily property located in Bend, Oregon. The sponsor, Evergreen Housing Development Group, purchased the property in January of 2015 with a senior loan from Freddie Mac. The asset is currently more than 95% occupied and has experienced strong historical performance.
The sponsor believes that current rents at the property are between 10%-15% below market. They plan to invest in minor upgrades to the units and increase rents to market over the course of the next 1-3 years.
Milestones & Exit Strategy: The sponsor closed on the acquisition in January 2015 at a purchase price of $20,875,000 and anticipates the following timeline:
Neighborhood: The Commons at Pilot Butte is centrally located within easy walking distance of Whole Foods, Barnes and Noble, restaurants, and breweries. The Commons at Pilot Butte is also directly abutting its namesake, Pilot Butte Park.
Financials: The sponsor purchased the property for $20,727,069 ($102,328/unit), and plans to increase rents, raising NOI from $1,116,755 in 2014 to a projected $1,419,093 in Year 1. This is supported by upward trending total collections, which were $1,785,000 for the first six months of 2014 on an annualized basis, and $1,869,470 for the last six months of 2014 on an annualized basis. Sponsor-projected Year 1 NOI yields an aggregate DSCR of 1.33x.
Payments: Payments on this series of notes will be as follows:
The sponsor closed the acquisition on January 8, 2015 for $20,875,000 with a $16,700,000 (80% LTV) fixed-rate loan from Freddie Mac with 30-year amortization, 3.81% rate, 7-year term, and 2 years of Interest-Only payments.
|Gross Annual Return*||12.0%|
|Capital Senior to Fundrise||70-79%||4|
|Capital Junior to Fundrise||10-19%||4|
|Sponsor’s Track Record||$50-249 million||2|
The information contained in the Fundrise Rating is for informational purposes only. It is impersonal and not individualized for any specific investor's financial situation and is not investment advice. These ratings are not intended to be, nor should you interpret them to be, a prediction of how a particular investment will actually perform. You should always carefully consider investments in any security and be comfortable with your understanding of the investment. You may also consider consulting investment professionals.
|Type||Source||% of Total||Amount|
|Equity||Sponsor and LPs||14.6%||$3,055,000|
|Preferred Equity||Fundrise Investment ($1.0M)||5.4%||$1,120,000|
|Senior Debt||Freddie Mac||80.0%||$16,700,000|
The Commons at Pilot Butte is a 204-unit garden-style multifamily property. Built in 2004, the asset has been well maintained, and features a fitness center, sauna, recreation room, barbeque pits, picnic area, and professional leasing center. Each unit features a full-size washer/dryer, electric fireplace, dishwasher, disposal, and patio or private deck.
|Address||2020 NE Linnea Drive|
|City & State||Bend, OR|
|Product Type||Residential / Multi-Family|
|Project Phase||Stabilized / Recapitalization|
Bend, OR has seen steady year-over-year gains in rental rates since 2010 and is currently 98% occupied. Land constraints and high regulatory hurdles to new development mean that little new apartment inventory is likely to be brought on line until 2017 or later.
Despite the lack of new rental supply, Bend’s population continues to grow. US Census data show the city proper has grown by over 4,600 people (+6%) in the past 3 years, from 76,693 in 2010 census to 81,236 in 2013. Since 2000 the population in Bend is up over 50%. Potentially, Bend’s population will expand beyond normal growth with the addition of the new Oregon State University 4-year campus. The "Cascades Campus", as OSU is naming it, has a planned student population of 2,000 new students in 2016, expanding to 5,000 as a new 46-acre master planned campus is built out.
The median household income in Bend is $52,601 and poverty levels are below the averages for the state and nation. Air access is good with non-stop flights to Los Angeles, Seattle, Portland, San Francisco, Salt Lake City, and Denver. Bend’s economy is diversifying from a base of tourism and construction to include health care, technology, light industry, and education. Employers are finding that Bend’s year round amenities and lifestyle with proximity to the Bay Area, Seattle, and Portland make for an ideal work/life balance crucial to recruiting today’s top talent.
The Commons at Pilot Butte is centrally-located to everything Bend has to offer and within easy walk of Whole Foods, Barnes and Noble, restaurants, and breweries. The Commons at Pilot Butte is also directly abutting its namesake, Pilot Butte Park.
The region’s largest employer, St. Charles Medical Center, is only 1 mile from the property, and numerous other employers are a 10-minute or less commute away.
Founded in late 2004, Evergreen Housing Development Group, LLC and affiliates provide organizational, development and construction guidance to separate single-purpose real estate development entities.View full profile
|Gross ann. return*||12.0%|
|Servicing and administration fee||-0.3%|
|Net ann. return to investors||11.7%|