|Current Ann. Return||12.0%|
|Accrued Ann. Return||+
|Gross Ann. Return*|
|Current Ann. Return||12.0%|
|Accrued Ann. Return||–|
|Gross Ann. Return*||12.0%|
|Term Remaining||– of –|
|Capital Senior to Fundrise||60-69%||3|
|Capital Junior to Fundrise||20-29%||3|
|Sponsor’s Track Record||$250 million or more||1|
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|
|Common Equity||Sponsor & Private Investors||26.2%||$1,154,000|
|Common Equity||Fundrise Offering||5.7%||$250,000|
|Senior Debt||Citi Group GMRC||68.1%||$3,000,000|
We are under contract to purchase a “retail condo” in downtown Indianapolis. The property comprises 13,110 square feet and is 100% occupied by two tenants, Tilted Kilt and Howl at the Moon. Both are national entertainment concepts.
Tilted Kilt, occupying 7,500 SF (57.2%), is a national Celtic-themed sports pub staffed with servers who wear plaid kilts; it is operated through a franchisee. Howl at the Moon, occupying 5,610 SF (42.8%) is a piano bar that is extremely popular with the local population; this is a corporate lease. The leases, which are both triple net, expire in 2021 and 2019, respectively.
This is a stable asset in a great location in a market that is overlooked by the vast majority of real estate capital. We are able to purchase the property at a 9.2% going-in cap rate (on purchase price) on existing income. The investment is projected to produce a 15% leveraged IRR to LP investors and an average annual cash on-cash return of 12% over the anticipated 6-year Investment Period.
Highlights of the deal include its strong and steady current cash flow — meaning distributions every quarter to the investors — its stable tenancy, and its irreplaceable location in a growing market. ATCO believes that demographic pressure will continue in America’s downtowns, and a property like this is an excellent way to capture value from young and old Americans wanting to live, work, and play in a walkable, pleasant environment.
|Address||141 South Meridian Street|
|City & State||Indianapolis, IN|
|Product Type||Retail / Tilted Kilt, Howl at the Moon|
|Project Phase||Stabilized / 100% NNN Occupancy|
Indianapolis is growing, thanks in large part to the State’s low cost of doing business; the City’s low cost of living and quality of life; and the work that the City and the Indiana State governments have done to encourage population migration and job growth.
With over 500 foreign companies, Indiana ranks first in the nation in attracting new jobs through foreign direct investment. Indianapolis is ranked as one of the most affordable large cities in the US, with the lowest sales and use tax in the Midwest. The City consistently is ranked among top US cities with superior quality of life dynamics, exhibiting a cost of living nearly 11% below the national average.
Downtown Indianapolis has been the beneficiary of an active city government that has gone to great lengths to promote thoughtful and appropriate development. Over the last 20 years, there has been an investment of approximately $9.1 billion in public and private funds in the area. The population of those living Downtown has grown to 20,000 and with more than 30 residential projects underway, 3,100 units are expected to come to market by 2015.
Residents of the Indianapolis region regularly come into the downtown for food, drink, sports, and fun, no matter where they live and work., and so downtown Indianapolis enjoys a very strong entertainment district. The intersection of South Meridian Street and Georgia Street is literally the heart of that district. Meridian, which runs north to south, bisects Downtown Indianapolis.
Georgia is approximately three blocks in length, and was recently transformed into a pedestrian-friendly walkway that terminates at the Indiana Convention Center (960,000 conventioneers per year) to the west and at Banker’s Life Fieldhouse, home of the Indiana Pacers NBA team (average game fills Fieldhouse to 82% capacity), to the east. The property is a short walk to these two traffic drivers, as well as Lucas Oil Stadium, the Circle Centre Mall, and Indianapolis Union Station.
Real estate defines the communities in which we live, work, and play, and ATCO invests in projects that will yield positive community returns, as well as build value for our investors. We view the future of America as taking place in the downtowns of our cities, and we see overlooked opportunities in the downtowns of America's smaller, growing cities, places such as Austin, TX; Nashville, TN; Indianapolis, IN; and Charlotte, NC.View full profile