Confidential Investment Summary
The following information is an investment summary provided to prospective investors. This information is not a formal offering to sell either a security or a solicitation to sell a security. At the request of a recipient, the Company will provide a private placement memorandum, subscription agreement and the Limited Liability Company Operating Agreement. The Managing Member in no way guarantees the projections contained herein. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managing Member’s control. This investment is illiquid and only those persons that are able and prudence in your decision is strongly suggested. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you.
Dr. Vikram Raya
Dr. Ravi Gupta
CEO/Founder
COO/Founder
vraya@vikingcapllc.com
rgupta@vikingcapllc.com
THE VIKING CAPITAL TEAM
VIKRAM RAYA
RAVI GUPTA
JUDAH FULD
MATT KLEJKA
AMANDA LOVELESS
CHRIS PARRINELLO
CEO, Co-Founder
COO, Co-Founder
Director of Acquisitions
Director of Asset Management
Director of Operations
Director of Investor Relations
COLM MCEVILY
AMIR NASSAR
Investor Relations Manager
Investor Services Manager
NATHAN LOY Senior Acquisitions Analyst
Money is made by solving problems. Residential housing in the affordable and desirable class is a long term problem for next 100 years. It is not goingaway. We buy the RIGHT ASSETS in RIGHT MARKETS and IMPLEMENT A PROVEN BUT FLEXIBLE BUSINESS PLAN WITH AN EXPERIENCED TEAM WITH SWIFT EXECUTION. THAT IS OUR SECRET SAUCE.
The Viking Wealth Fund is Viking Capital’s first ever real estate private equity fund. Our mission is to create extraordinary value and growth by acquiring stable assets. At Viking Capital, we
The Fund is open to Accredited Investors only. Investors will get paid on a monthly basis starting 90 days after the Fund’s launch. The minimum investment is $50,000 for Class A, $50,000 for Class B, and $1,000,000 for Reserve Class.
continuously strive for capital preservation for all of our investors while generating accelerated returns. The goal of the Fund is to mitigate our investors’ risk across various markets and properties by diversifying and scaling their portfolio. This Fund is open to individuals, family offices, LLCs, trusts, funds, and 401K (IRA funds). The Viking Wealth Fund plans to acquire 5-7 assets across the sunbelt and select regions such as GA, TX, AZ, FL, NC and SC. The Fund’s projected hold period is 5-7 years, though the Sponsor may hold the properties less than 5 years.
RESERVE CLASS $1,000,000
CLASS A $50,000
CLASS B $50,000
TARGET MARKETS
Tier 1 Primary Growth MSAs Viking Capital identifies markets for investment with strong demographics, positive net migration and thriving job markets. Viking has already acquired multifamily properties in Atlanta, Dallas, Austin, Washington, DC, and Indiana. Our Fund model investment approach is no different as we grow our opportunities and continue to see investment opportunities in the nation's strongest growth markets to include Florida, North Carolina, South Carolina, and Arizona.
Elite Submarkets in Secondary/Tertiary Cities Many submarkets in secondary/tertiary cities exhibit phenomenal demographics and investments markers despite belongings to a less than stellar overall market. The lower demand commanded by the greater MSA enables Viking Capital to purchase assets in the high-performing submarkets at higher yield pricing.
Viking Capital’s Two-Pronged Approach to Market Identification
TEXAS
TARGET MARKETS SAN ANTONIO
HOUSTON
5 YEARS
5.5%
5 YEARS
Average Rent Growth
3.3% 8.3% 13.3%
Average Rent Growth
Population Growth
6.5%
Population Growth
Household Income Growth
14.5%
DALLAS
Household Income Growth
5 YEARS
3.5%
Average Rent Growth
7.9%
Population Growth
21.3%
Household Income Growth
DEMAND DRIVERS Houston ranked #7 “Best Brand Cities” by Resonance Consultancy (2017) - And the only Texas Metro to make the top 10.
Texas is the #2 ranked business-friendly State in US.
Top metro in the country for corporate expansions and headquarter relocations.
Texas added 1.47 million jobs since peak pandemic impact, equating to a 101% recovery rate.
GEORGIA
TARGET MARKETS
#1 Metro Area Tech Hub #4 Metro Area Cyber City #7 Metro Area for Data Centers #9 Tech Talent Market
ATLANTA 5 YEARS
5.58% Average Rent Growth 6.6%
Population Growth
29.1%
Household Income Growth
LEADING HIGHER EDUCATION INSTITUTIONS
DEMAND DRIVERS Home to 70 Higher Education Institutions with more than 300,000 students.
5 Year GDP Growth of 20% with over $365 billion.
Home to the world's busiest airport (Hartsfield-Jackson Atlanta International Airport).
FUND CRITERIA
Fund Size: $50
We are consistently working hard t nd the best multifamily real estate deals out there for this Fund. That means looking for conservative, low-risk investments with high yielding value-add potential, so we can preserve your capital while maximizing your growth.
Target No. of Assets: 3 Assets
Asset Class & Size: 100-300 Units, Class A&B
Occupancy: 90%+ on all Assets
Who Can Invest: Individuals, LLCs, 401K’s, Trusts, and F ces
Lower Volatility Viking Wealth Fund is designed to offer investors stable yet accelerated returns without the roller coaster volatility of the stock market. Diversification Within a Strong Asset Class Investors have the ability to diversify their real estate portfolio by investing in different properties in multiple markets. Potential Tax Benefits The fund is structured to fully optimize investors’ tax saving strategies, such as accelerated depreciation and cost segregation for each of the properties within the fund.
Increased Exposure to Upside The Viking Wealth Fund offers the ability to participate in the upside upon the sale or refinance of each asset.
Single Syndication Single asset. Single geography.
Pass-through tax treatment, depreciation, and interest expense.
Access to one investment at a time upon availability.
Limited exit strategies.
Diversification provides Diversification provides stable returns with risk stable returns with risk spread throughout. spread throughout.
Real Estate Fund Multiple assets. Multiple geographies.
Pass-through tax treatment, depreciation, and interest expense.
Access to multiple large investments throughout the country.
Advantageous exit strategies to off load as a portfolio to Institutional buyers at a premium.
Diversification provides stable returns with risk spread throughout.
INVESTMENTSUMMARY &HIGHLIGHTS The multifamily sector is the most established in
The Fund will acquire three multifamily communities,
the U.S., where it has been the largest
increase Net Operating Income at each over our 3 –5
investment asset class for the past six years.
year hold period and then exit at a new higher value.
Investors have the ability to diversify their real
$50M 506(c) Fund open exclusively to accredited
estate portfolio by investing in several
investors only.
properties in multiple markets.
Investment Options Based on Your Needs: Class A: Robust 10% Preferred Return-A Pure Cashflow Play (Mailbox Money) Class B: 7% Preferred Return with 70/30 Split –Equity Multiple 1.7x-2.0x Reserve Class: 8% Preferred Return with 70/30 Split –Equity Multiple 1.7x-2.0x
Highly experienced team with an outstanding track record in asset management, acquisitions, capital preservation, and executing the projected business plan.
1150 Deals Analyzed
96 Letters of Intent
6 Deals Closed
Initial analysis of the asset, submarket, tenant demographics, and value-add potential.
Submit competitive offers
Close 6 deals in one year, spanning across a variety of assets and markets, offering
align with Viking's business strategy
equity partners
380 Deals Fully Analyzed underwriting of the deal to fully model how to maximize Viking's business plan
48 Best and Finals Invitation to participate in Best and Final due to Viking's competitive pricing and terms
FUND STRUCTURE
The Viking Wealth Fund is structured to ensure investors’ risks are minimized and spread throughout multiple markets (See Exhibit A). Limited Partners have the opportunity to invest in the Fund entity, which serves as the holding company for the properties within the Fund giving them ownership of all the assets held. Exhibit A
INVESTORS
VIKING WEALTH FUND
SUNBELT REGION
TIVONA
KINGS COVE
SKY RIDGE
APARTMENTS
TARGETED RETURNS While the Viking Wealth Fund is a new investment model, its targeted returns remain in line with our investment criteria. Three-Tiered Return Options: A three-tiered return structure gives investors options when placing their
CLASS A
CLASS B
VIKING RESERVE CLASS
10%
7%
8%
Preferred Return
Preferred Return
Preferred Return
70/30
80/20
Increased Cash Flow with Prioritization in the waterfall. No Participation in Upside
Equity Split Gives Investors Exposure to Upside Potential
Equity Split Gives Investors Exposure to Upside Potential
1.5x
1.7 - 2.0x
1.9 - 2.2x
Equity Multiple
Equity Multiple
Equity Multiple
equity. Investors have the ability to invest in either Class A, Class B, Reserve Class or a combination of Class A and Class B. Diversifying Overall Targeted Returns Per Project
in both A and B classes allows for a risk adjusted, blended return.
13 - 15%
17 - 20%
7 - 9%
IRR
AAR
Cash on Cash From Operations
Annual Fund Cash On Cash Projections
Viking Capital is pleased to announce the 2nd official property to be acquired within the Viking Wealth Fund. Kings Cove is a Class “A” garden-style apartment community built in 2007. This pet-friendly, 192-unit complex is located conveniently in the northeast Houston community of Kingwood. The property sits within the heart of Kingwood, and is close to numerous options for a live, work, play lifestyle, as well as numerous employment options.
The property offers Viking Capital an opportunity to continue a proven successful renovation program. As a part of the Humble Independent School District, Kings Cove has a wonderful selection of schools, including the “A+” rated Kingwood High School. The unique location, the value-add opportunity, and enviable school system make Kings Cove an opportunity for long-term stability, future rent growth and value appreciation.
Year Built
2007
Cap Rate
4.1%
Occupancy
97%
AVG DSCR
1.6+
Hold Period
5 Years
Tremendous Value-Add Potential The property has a proven, successful renovation program. By continuing the existing renovation scope, we can expect to achieve a premium of $225+/unit on the remaining 128 non-upgraded units. Town Center by Cortland is a perfect comparable example of a successfully implemented renovation program and has achieved rent premiums of $225-$550 depending on the unit type.
Location, Location, Location! The property sits within the heart of Kingwood, and is close to numerous options for a live, work, play lifestyle, as well as numerous employment options. Lake Houston/Kingwood is one of the hottest submarkets in the Houston MSA. According to ApartmentData.com, rental rates in the Lake Houston/Kingwood submarket are rapidly increasing showing a 12% yearly increase and a 19.5% increase in the last 6 months.
Class A Area The Kingwood area located in Harris County is one of the best places to live in Texas for families and high net-worth individuals. From the top ranked schools in the state to being named one of the safest communities to live in Houston, Kingwood boasts a median income of $106K+ according to Niche.com. With over 75 miles of hike and bike trails, known as the "greenbelt," residents can enjoy Kingwood's naturally beautiful woods and lakes. These trails are great for exercising, golfing, walking or bicycling.
The Growth of Houston Families and businesses alike continue to make the move to the Houston region and rapidly. ExxonMobil plans to relocate its corporate headquarters to its Houston campus from Irving, Texas in mid-year 2023. Houston's metropolitan statistical area ranked No. 3 in the nation in terms of raw population growth year over year. All of the move-ins create opportunity and a growing pool of talent for local business.
CAPITAL EXPENDITURE BUDGET Interior
Exterior
Plank Flooring within Kitchen and Bathroom
Powerwash and Repainting
Replace Carpet
Refresh Signage
Tile Backsplash
Exterior Fence Enhancements
Change Cabinet Fronts and Paint Boxes
Update Landscaping
Lower Kitchen Counter Bar
Modernize Leasing Office/Clubhouse
*TOTAL- $12,000 per Classic/Partial Unit (128)
Update Pool Furniture Update Grilling Station Relocate Dog Park Install Package Lockers Additional Reserves *TOTAL- $3,984 per Unit *Total Capex Budget- $2,300,928
* Subject to change upon closing
Tropically Landscaped Pool Walking Distance to Kings Harbor Waterfront Village Outdoor Gourmet Grilling Center Spinning Room Business Center & Cyber Cafe Pet Park Access Gate System Detached & Covered Garages
Address
4920 Magnolia Cove Dr
City
Kingwood
County
Harris
Year Built
2007
Units
192
Total Square Feet
185,520 SF
Average Unit Size
966 SF
Building Type
Garden
Number of Apartments Buildings
8
Number of Stories
3
Foundation
Post Tension Concrete Slab
Framing
Wood
Exterior
Stucco, Brick, Wood Trim
Roof
Pitched & Flat Roofs
HVAC
R22 and R410 on the Side Wall
Water Heater
Individual
Electrical Wiring
Copper
Plumbing
PVC
Washer/Dryer Connections
Yes
UNIT MIX
KINGS COVE LUXURY APARTMENTS 4920 Magnolia Cove Dr, Kingwood, TX 77345
Built................................................2007 Occupancy: .............................97% Units...............................................192
Units
Unit Type
Unit SF
MARKET RENT
RENT/SF
40
1/1
707
$1,125
$1.59
20
1/1
707
$1,255
$1.77
24
1/1
810
$1,174
$1.45
12
1/1
810
$1,321
$1.63
56
2/1
1,161
$1,467
$1.26
28
2/1
1,368
$1,635
$1.41
4
2/2
1,368
$1,835
$1.34
2
2/2
1,368
$1,987
$1.45
4
3/2
1,368
$1,825
$1.33
2
3/2
1,368
$1,972
$1.44
192
WT AVG.
966
$1,378
$1.43
1 Bedroom - 47% 2 Bedroom - 50% 3 Bedroom - 3%
FLOOR PLANS 1 Bed
1 Bath
707 Sq.Ft.
1 Bed
1 Bath
810 Sq.Ft.
FLOOR PLANS 2 Bed
2 Bath
1161 Sq.Ft.
2 Bed
2 Bath
1368 Sq.Ft.
FLOOR PLANS 3 Bed
2 Bath
1368 Sq.Ft.
Houston On The Rise Alive with energy and rich in diversity, Houston is a dynamic mix of imagination, talent and first-class attractions that makes it a world-class city. As a major corporate center, Houston is home to 25 Fortune 500 companies to date. This positions Houston as the third highest number of Fortune 500 companies nationally, eclipsed only by New York City and Chicago. As for employment ranking, nearly 25 percent of all adults have completed four years of college, surpassing the national average. Looking to the future of the city, construction is nearing completion on Hewlett Packard Enterprise’s (HPE) new global headquarters in Spring. Work started nearly two years ago on the 440,000-square-foot project that encompasses two, five-story buildings within the Springwoods Village development. Houston had recovered roughly 70% of the jobs lost in the pandemic by fall 2021. In its annual economic forecast released in December, the Greater Houston Partnership estimated the region will create another 75,500 net new jobs in 2022, putting Metro Houston extremely close to a full economic recovery according to houston.org.
DEMOGRAPHICS
Mature Residents The median age of residents in this submarket is 41, compared to 33.6 across the Houston region
5-Mile Radius
Rapid Population Growth Since 2010, the population across the submarket increased by 17.18%. Over the same time, the population across the nation increased by 6.8%
Rising Income
Sophisticated Workforce
Residents aged 25-40 earn $111,163 and the median household income sits at $106,300 per year
White-collar workers make up 87% of the working population in Kingwood compared to the 63% across the nation Education Levels 79% of residents have some college education or more compared to the 61% national average
Key Renter Age Group 28% of residents are within the key renter age group of 25 to 40 years of age
NOTABLE EMPLOYERS N
ATASCOCITA TOWN CENTER 3.5 MILES FROM KINGS COVE
Kroger Best Buy HEB Chick fil A
Lowe’s Walmart Supercenter Ross Starbucks
Lupe Tortilla Bike Barn Target Kohl’s
4,171 Employees 5,000 Employees
KINGS HARBOR WATERFRONT VILLAGE 0.4 MILES FROM KINGS COVE
KE
HO
US
TO
N
PK
W
Y
West Lake Church BRW Architects Edward Jones Orion NRL Mortgage
LA
Sharkey’s
BerryBar Zammitti’s Berkshire Hathaway Home Services Capital Title
W
Chimichurri’s Pretty Little Things Boutique
KINGS COVE
1,172 Employees
17
Strong demographics at Kings Cove and the immediate submarket supports strong rent growth and economic occupancy.
$106K+
19%
Average Household Income
Population Growth from 2010 - 2020
51%
$69.5 Million
Hold a Bachelor’s Degree or Higher
Annual Consumer Spending
George Bush Intercontinental Airport is
45 Million Int’l Passengers
currently undergoing a $1.3 billion capital improvement program called the IAH Terminal Redevelopment Program (ITRP). The ITRP should be complete by late 2024-early 2025. IAH employs north of 5,000 and has a footprint of over 80 million annual passengers to date. IAH shined once again at the 2020 Skytrax World Airport Awards by earning a long list of honors in various categories including World’s Top 100 Airports, Best Airport Dining, Best Airport Staff, and World’s Best Website and Digital Services. Houston remains the only city in the Western Hemisphere to have two 4-star+ Skytrax rated airports.
Ranked World’s Top 100 Airports
$1.3B Project Underway
Home to 160K+ Establishments
The Houston Metro is a major corporate center, ranks third in the nation in Fortune 500 and fifth in Fortune 1000 headquarters. Many other Fortune firms maintain U.S. offices in Houston. The Texas Workforce Commission reports that Metro Houston was home to more than 160,000 establishments in ’20. The three industries with the most establishments were professional, scientific, and technical services; health care and social assistance; and retail trade.
20 Fortune 2000 Companies
Ranked Top 5 in Fortune 1000
Houston Methodist Hospital is reengineering
25,543 employees
the future of medicine with translational research and education that has a demonstrable impact on clinical care. The Academic Institute’s $30 million Translational Research Initiative product development fund supports the specialized talent and technology that enables the full cycle of development to efficiently and effectively deliver innovations to the clinic. Integrated into U.S. News & World Report’s No. 1 hospital in Texas and named one of America’s “Best Hospitals,” the Institute cultivates a global collaboration network of interdisciplinary faculty to advance laboratory discoveries into treatments for patients.
1.5 million patient encounters
$153M in Annual Research Expenditures
225,000 Sqft
Chicago-based United Airlines Inc. has moved into its new downtown Houston office. This new space offers a tech center, a pair of employee gardens and personal work stations modeled after business class seats on an airplane. Around 200 of United's 1,600 downtown employees in Houston are expected to move into space at George Bush Intercontinental Airport, where United has one of its largest hubs. The airline signed an 11-year lease with the building and has options to expand.
$43M Project
1,400 New Employees
Exxon Mobil plans to move its headquarters to its Houston-area campus from a Dallas suburb next year, becoming
10K+ Employees Projected for 2023
the largest Fortune 500 company in the metro area. The arrival of Exxon's top brass and some 250 workers from Irving will bolster Houston’s standing as the nation’s “energy capital,” attracting more energy investment and corporate relocations to the region, area leaders said.
Exxon Mobil’s move further solidifies Houston’s position as the Energy Capital of the World. Exxon Mobil is a key participant in our Houston Energy Transition Initiative, and we look forward to working with the company as we continue to position Houston to lead the energy transition to a low-carbon future. — Bob Harvey, CEO of the Greater Houston Partnership
385 Acre Campus
25th Fortune 500 Company in Houston
$3B in Projects Underway
Houston’s Texas Medical Center is the world’s largest medical complex. The Texas Medical Center’s 63 member institutions are consistently recognized by U.S. News and World Report as some of the best hospitals and universities in the nation. In ’21, construction began on TMC3, a multi-institutional 37-acre research campus. The project is a joint venture between four founding institutions: MD Anderson, UT Health, Texas A&M HSC and TMC. The four story campus will include 187,000 square feet of wet labs, offices, shared meeting space and lecture halls. It is projected to create over 26,540 permanent jobs and bring $5.4 billion annually to Texas’ economy. The “3” inTMC3 is meant to designate Houston as the “third coast” for life sciences.
106K+ Employees
10M Patient Visits
With more than 243,900 tech workers, Houston has the 11th largest tech workforce in the U.S. In ’19, Houston’s tech industry contributed $29.2 billion to the region’s GDP.
Houston is the center for medical device manufacturing, pharmaceuticals, and health research. The Houston region is home to more than 18,960 life science and biotech researchers.
NASA’s Johnson Space Center (JSC), a $1.5 billion complex established in 1961, occupies 1,620 acres. JSC’S largest contractors in ’20 included Boeing, Lockheed Martin, and Northrop Grumman.
Houston’s energy sector in 2020 accounted for 7.9% of the region’s employment and 3.5% of its firms. The average job in an energy-related industry paid approximately $136,897 per year, almost double the metro average
Houston has one of the highest concentrations of engineering talent in the nation. For every 100,000 workers in the Houston MSA, there are 1,747 engineers.
RENT COMPS
AVERAGE RENTS OF CLASSIC UNITS ARE $140 BELOW RENT COMPS
AVG RENT/UNIT $1,600 Town Center
$1,500 $1,400
The Jaxon Marquis
$1,300 Reserve
$1,200
Harbor Cove
$1,100
800
825
850
875
900
925
950
975
1000
AVG SF/UNIT
PROPERTY NAME
5
4 3
BUILT
OCCUPANCY
AVG SF
AVG RENT
AVG RENT/SF
Harbor Cove in Kingwood
2001
94%
953
$1,208
$1.27
The Jaxon
2010
94%
927
$1,323
$1.43
1994/1998
95%
877
$1,553
$1.77
Reserve at Kingwood
1999
92%
877
$1,229
$1.40
Marquis at Kingwood
1998
95%
918
$1,319
$1.44
95%
912
$1,357
$1.49
98%
966
$1,219
$1.43
Town Center by Cortland 2
1
Total / Averages Kings Cove Classic Units
2001
INCOME
Year 1
Year 2
Year 3
Year 4
Year 5
Gross Potential Income
3,274,238
3,536,399
3,745,433
3,861,337
3,978,783
Loss to Lease
-124,662
-51,351
-37,454
-38,613
-39,788
Vacancy
-120,181
-176,820
-187,272
-193,067
-198,939
Concessions
-39,595
-25,676
-18,727
-19,307
-19,894
Models, Office, Employee Units
-19,921
-21,218
-22,473
-23,168
-23,873
Bad Debt
-53,440
-51,351
-27,260
-19,307
-19,894
Effective Gross Rental Income
2,916,439
3,209,983
3,452,248
3,567,875
3,676,395
Other Income
385,042
396,754
408,821
421,256
434,069
Total Net Income
3,301,481
3,606,736
3,861,069
3,989,131
4,110,464
Real Estate Taxes
784,623
792,506
800,467
808,509
816,631
Insurance
194,093
198,010
202,007
206,084
210,244
Contract Services
48,398
49,375
50,371
51,388
52,425
Gas and Electric
25,940
26,464
26,998
27,543
28,099
Water and Sewer
97,333
99,298
101,302
103,347
105,433
Trash Removal
43,277
44,150
45,041
45,950
46,878
Other Utilities
13,426
13,697
13,973
14,255
14,543
Management Fee
99,044
108,202
115,832
119,674
123,314
Repairs and Maintenance
168,518
171,919
175,390
178,930
182,541
General/Admin
91,591
93,439
95,325
97,249
99,212
Advertising and Leasing
58,228
59,403
60,602
61,825
63,073
Payroll
334,810
341,568
348,462
355,496
362,671
Total Expenses
1,959,280
1,998,031
2,035,771
2,070,250
2,105,064
Expense Ratio
59.3%
55.4%
52.7%
51.9%
51.2%
Net Operating Income (NOI)
$1,342,201
$1,608,706
$1,825,298
$1,918,881
$2,005,400
EXPENSES
Year Built
1986
Cap Rate
5.1%
Occupancy
96%
AVG DSCR
2.1%
Hold Period
5 Years
Tremendous Value-Add Potential This property offers immense upside with a rental delta of approximately $500 when compared with nearby comparable properties. With 57 units already having received a light renovation, there is a proven value-add plan to enhance up to the 67% of units and capture $200+/unit premiums.
Location, Location, Location! Atlanta has become one of the most sought-after locations in the U.S., and Woodstock is no exception. Woodstock was recently named the 3rd best Suburb in the Country by Homes.com. The area has experienced a 25% population increase in the last 10 years and an 80% growth in the last 20 years. And there’s a good reason for the explosive growth. Within a 5-mile radius of the property, there are numerous attractive retail opportunities: Costco, Target, Sam’s Club, Sprouts, Home Depot, Kohl’s, and much more.
3rd and Final Asset Within the Fund 120-unit apartment community built in 1986. Sky Ridge is supremely located in the Atlanta’s Platinum Triangle and just minutes from the retail, path of progress, luxury homes and jobs. In addition to its superior submarket and favorable floor plans, Sky Ridge allows us to achieve substantial rent growth. With its excellent location and value-add potential, Sky Ridge is positioned well for long–term stability, future rent growth and value appreciation. The previous ownership has successfully renovated 40 units total that averaged $200 more per month than prior rents. With the opportunity to renovate 80 more units, Viking can potentially generate over $450,000 in additional revenue by averaging $10,000 per renovation. Interior renovations will not only result in immediate upside but aid significantly in tenant retention.
Institutional Quality Ownership Viking is acquiring Sky Ridge from one of the top real estate investment companies in the nation. As such, we can rest assured that the quality of the property, the tenant profile, and the minimal deferred maintenance will allow us to focus on revenue-generating improvements. The fact that institutional-level groups are investing within Woodstock, further supports the notion that this is a great area with high growth potential.
3rd and Final Asset Within the Fund Leasing Momentum with new lease premiums Class B asset in an A+ area, poised to take advantage of surging submarket True Value Add Deal, purchased at discount Buying from Blackstone – Institutional quality Core/Core Plus Alley of High-End Apartments Attractive Debt Terms from Private Lender Repeatedly named Top Places to live by Money Magazine Cherokee County is ATL 2nd fastest growing county with 25% population growth and 33% employment growth
Lack of Historical Multifamily Deliveries and Strong Population Growth Drive Property Performance Cherokee County boasts the best supply/demand fundamentals in the Atlanta MSA with the greatest population growth relative to multifamily deliveries.
No units under construction
submarket vacancy
Y-o-Y Growth
NET ABSORPTION OUTPACING DELIVERIES DRIVING VACANCY TO RECORD LOW
POPULATION GROWTH TO DELIVERIES SINCE 2010 1,200
Cherokee
10.0% 9.0%
Gwinnett
1,000
15:1
8.0% 7.0%
800
Cobb
6.0%
DeKalb
5.0%
600
4.0%
Fulton
400
0
2
4
6
8
10
12
14
3.0%
16
2.0%
200
1.0% 0
Recent deliveries are proving Class A demand with rapid lease-up (20-25 units/mo) and rents approaching $2,000/unit
2015
2016
2017 Absorption
2018
2019
Net Deliveries
Vacancy
2020
2021 YTD
Recent multifamily deliveries have leased quickly, pushing the submarket’s vacancy rate to a record low of 2.9%. Rents are rising at a historic pace with year-over-year rent growth of 25.2%. With no properties under construction within a 5-mile radius of Hudson Woodstock, the property is poised for tremendous growth.
0.0%
Georgia Express Lanes Project Improves Commute Times to Major Demand Drivers
Demand Drivers KSU is a top-50 largest public institution in the nation with a $1.55B economic Impact. Kennesaw State University Highlights Third largest university in the state of Georgia with 35,000+ students The university has nearly 150 undergraduate, master’s and doctoral programs Consists of 130 buildings and facilities for academics, operations, culture, recreation and residential
Sky Ridge Apartments is proximate to the newly con-structed Norwest= Corridor Express Lanes. Residents can now access Kennesaw, Marietta, and the Cumber-land Office Market 30% faster.
The 31M SF Cumberland/Galleria office submarket serves as headquarters for major employers including Home Depot, Comcast, HD Supply, Genuine Parts, and Synovus Financial. The Bat-tery, the Atlanta Braves’ mixed-use de-velopment centered around Truist Park, triggered a new wave of Class A oce developments including new headquarters locations for TK Elevator and Papa John’s.
Downtown Woodstock Just 2-miles from Sky Ridge, Downtown Woodstock exudes southern charm and historic ambiance.
COOPER COIN COFFEE
CANYONS BURGER COMPANY
VINGENZO’S PASTA & PIZZERIA
CENTURY HOUSE TAVERN
Set within a thriving “Main Street” environment, Downtown Woodstock offers one-of-a-kind shopping, 20 chef-driven restaurants, art galleries, clothing boutiques, craft breweries and more.
FIRE STONE WOOD FIRED PIZZA & GRILL
SALT FACTORY PUB
FREIGHT KITCHEN & TAP
ICE MARTINI BAR
New Downtown Woodstock Unveils Ambitious Growth Plans Expansion to include a Boutique Hotel, Shopping, and Office to form new Woodstock City Center, just minutes from Sky Ridge Apartments. PROJECT COMPLETION IN 36 MONTHS
Strategic LocationSuperior School Zoning & Demographic Profile Sky Ridge benefits from being located within a premier school zoning district. Woodstock Elementary, Woodstock Middle School and River Ridge High School are consistently ranked as some of the best schools in the State of Georgia.
AREA DEMOGRAPHICS
Source: CBRE Research Analytics
Woodstock Elementary
Woodstock Middle School
River Ridge High School Source: Niche Ratings
Atlanta MSA
Limited Multifamily Competition
Canton
575 20
20
20
Very few residential market-rent apartment complexes exist within a short radius and there is very limited supply bring brought to market. Sky Ridge is a dominant presence within the region and with the lack of available product in the market, it ensures a high occupancy and strong rent gains year-round.
Holly Springs
17 MILES
10 MILES
400
575
141
Mountain Park
Woodstock
Alpharetta
75
2 MILES
120
10 MILES
120
400
Johns Creek 141
7 MILES
Roswell
Kennesaw 75
400
575
East Cobb 75
Downtown Marietta
Berkeley Lake
Rosewell 400
Dunwoody
Norcross
141
Competitive Rental Set Sky Ridge has the rare advantage of being one of the few choices for affordable renters looking for a quality apartments in the Woodstock area. The surrounding A+ area is saturated with Class A units including Station 92 a 2015 vintage garden style apartment complex also owned by Blackstone. Blackstone choosing to hold its core-plus asset in the area shows that they are very high on the Woodstock market.
HUDSON WOODSTOCK
Year Built: 2000 Units: 498
INTERIOR RENOVATION SCOPE: PROVEN VALUE ADD POTENTIAL
Sky Ridge Apartments Classic Unit
$200 premium
Sky Ridge Apartments Renovated Unit
EXTERIOR RENOVATION SCOPE: PROVEN VALUE ADD POTENTIAL
Sky Ridge Apartments Classic Exterior
Organic Rent Growth $300 Value Add $200 Total Rent Premium up to $500
Sky Ridge Apartments Renovated Exterior
CAPITAL EXPENDITURES Interior
Vinyl Plank Flooring Hard Surface Countertops Cabinet Fronts And Painted Boxes Backsplash Light And Plumbing Fixtures As Needed Total - $10,000 Per Classic Unit (57)
Exterior
W/D (54 Units) Landscaping (Inclusive of pine tree removal) Roof & Gutters (6 of 11) Amenity Poly Reserve Repaint Exteriors (Including wood repair) Repair concrete walkways Fire, Life & Safety Signage/monument Add picnic tables to grill station Dog park upgrade Drainage repair Misc. Total - $7,500 Per Unit TOTAL CAPEX BUDGET: $1.47M
UNIT MIX
SKY RIDGE APARTMENTS 107 Skyridge Drive, Woodstock, Georgia 30188
Units
Unit Type
Sq Feet
Effective Rent
Pro Forma Rent
26
Studio 1 Bath
288
$932
$1,312
88
1 Bed 1 Bath
576
$1,057
$1,486
2
2 Bed 1 Bath
864
$1,516
$1,668
4
2 Bed 2 Bath
864
$1,226
$1,694
120
Averages:
528
$1,043
$1,458
Studio - 22% 1 Bedroom - 73% 2 Bedroom - 5%
FLOOR PLANS Studio
1 Bath
288 Sq.Ft.
1 Bed
1 Bath
576 Sq.Ft.
FLOOR PLANS 2 Bed
1Bath
864 Sq.Ft.
2 Bed
2 Bath
864 Sq.Ft.
PROFORMA Year 1
Year 2
Year 3
Year 4
Year 5
Gross Potential Income - Loss to Lease - Vacancy - Concessions - Models, Office, Employee Units - Bad Debt Effective Gross Rental Income
1,878,793 -194,968 -134,034 0 -5,159 -23,840 1,520,793
2,059,992 -110,278 -121,585 0 -10,300 -20,600 1,797,230
,2 169,756 -51,370 -108,488 0 -10,849 -21,698 1,977,351
2,235,751 -22,358 -111,788 0 -11,179 -22,358 2,068,070
2,303,753 -23,038 -115,188 0 -11,519 -23,038 2,130,972
Other Income Total Net Incom e
154,159 1,674,952
158,848 1,956,078
163,680 2,141,031
168,658 2,236,728
173,788 2,304,760
181,293 25,625 21,378 11,290 2,734 54,943 12,977 4,749 58,623 85,378 29,584 31,598 182,952 703,124 42.0%
226,851 27,809 21,909 11,571 2,802 56,307 13,300 4,867 68,463 87,498 30,319 32,383 187,497 771,574 39.4%
228,892 28,370 22,351 11,804 2,859 57,444 13,568 4,965 74,936 89,264 30,931 33,036 191,281 789,702 36.9%
231,191 28,943 22,802 12,042 2,916 58,603 13,842 5,065 78,285 91,066 31,556 33,703 195,142 805,158 36.0%
233,514 29,527 23,263 12,285 2,975 59,786 14,121 5,167 80,667 92,904 32,192 34,383 199,081 819,866 35.6%
$971,828
$1,184,504
$1,351,329
$1,431,570
$1,484,894
INCOME
EXPENSES Real Estate Taxes Insurance Contract Services Electric Gas Water and Sew er Trash Removal Other Utilities Management Fee Repairs and Maintenance General/Admin Advertising and Leasing Payroll Total Expenses Net Operating Incom e (NOI)
DEMOGRAPHICS
Rising Income The 5-mile radius around Sky Ridge has a median household income greater than the state of Georgia and Cherokee County.
Best Places to Live Woodstock is one of the top 20 best places to live in the U.S. according to a recent report by Money magazine Economic Development Woodstock is a growing city with a young, vibrant, well-educated population.
Population Density The 5-mile radius of people per square mile is greater than Georgia and Cherokee county combined
Sky Ridge Apartments Rapid Growth Since 2010, the population in the immediate area has increased by 25%. That doesn’t even touch on the 20%+ rent growth.
Explosive Rental Growth Lease trade outs” have seen a 21% increase in rental rates between previous and current leases.
DEMOGRAPHICS
Best Place to Live 2021 Woodstock, Georgia Population
Median Household Income
Median Home Price
Unemployment Rate
Sources: Population and median household income provided by Synergos Technologies Inc.; unemployment rate (by county) provided by the Bureau of Labor Statistics; and median home price provided by ATTOM Data Solutions.
FAST-GROWING CHEROKEE COUNTY Cherokee County is Atlanta’s 2nd fastest growing county with 25% population growth over the last decade. The county’s explosive growth can be attributed to its highly educated workforce, proximity to major employment centers and some of the best public schools in the state of Georgia. 60.00% 52.20% 50.00% 43.50% 40.00%
36.30% 32.8%
29.9%
29.5%
30.00%
34.90% 25.6%
25.80% 23.3%
19.9%
20.00%
RECENT JOB ANNOUNCEMENTS
29.90% 25.10% 21.8%
21.3% 13.10%
10.00%
0.00% Cherokee
Forsyth
Hall
Coweta
% Increase in Employment 2010 - 2019 Source: Atlanta Regional Commission
Fulton
Gwinnett
Cobb
% Projected Increase in Employment 2020 - 2050
DeKalb
Third largest university in the state of Georgia with 35,000+ students The university has nearly 150 undergraduate, master’s and doctoral programs Consists of 130 buildings and facilities for academics, operations, culture, recreation and residentia
The 31M SF submarket serves as headquarters for major employers including Home Depot, Comcast, HD Supply, Genuine Parts, and Synovus Financial. The Battery, the Atlanta Braves’ mixed-use development centered around Truist Park, triggered a new wave
of
Class
A
office
developments
including
headquarters locations for TK Elevator and Papa John’s.
new
Just two miles from Sky Ridge is the Outlet Shoppes
of
Atlanta.
This
outdoor
mall
encompasses 1.9 M SF of retail space has served the residents of the Northwestern suburbs and its surrounding cities since 2013. The location is extremely convenient for residents of Sky Ridge and is one of only two major malls in the Northwestern suburbs.
Viking Capital is pleased to announce the first official property to be acquired within the Viking Fund, Tivona Apartments, a 210-unit apartment community built in 1981. Tivona is supremely located near the South Texas Medical Center and just minutes from the I-10 as well as the USAA World Headquarters. In addition to its superior location and favorable floor plans, Tivona allows us to achieve substantial rent growth. With its excellent location and value-add potential, Tivona is positioned well for long–term stability, future rent growth and value appreciation.
The previous ownership has successfully renovated 28 units total that averaged $150 more per month than prior rents. With the opportunity to renovate 182 more units, Viking can potentially generate over $660,000 in additional revenue by averaging $150 per renovation. Interior renovations will not only result in immediate upside but aid significantly in tenant retention.
Year Built
1981
Cap Rate
3.66%
Occupancy
97%
DSCR (Year 1)
1.3+
Hold Period
5 Years
Tremendous Value-Add Potential Tivona presents a substantial value-add opportunity largely due to its dynamic location in San Antonio, TX. Interior renovations will not only result in immediate upside but aid significantly in tenant retention. Nearby properties that have implemented a more robust value-add program have achieved rental rate increases of over 17% per month.
Location, Location, Location! Located just one mile north of San Antonio's largest single employer, USAA, which employs over 19,000 people, Tivona is situated in a prime location along I-10 in the heart of the thriving South Texas Medical Center, the epicenter of employment for San Antonio.
Free and Clear of Debt Tivona Apartment Homes are being offered free and clear of existing debt to allow for unrestricted financing options in the current historically low interest rate environment. This allows Viking the opportunity to take advantage of the most favorable financing options.
Operational Upside Opportunities exist to enhance income through the addition of rentable items such as washer, dryers, fenced yards and more covered parking. Currently all units except for the smallest floor plan at Tivona have connections and the property only leases 17 washers & dryers but has the potential to lease to another 155 units for $40 per month.
CAPITAL EXPENDITURE BUDGET Interior
Exterior
Replace cabinet fronts
Paint trim and doors
Replace countertops with faux granite
Reseal asphalt, stripe and asphalt repair
Plank flooring (faux wood throughout)
Concrete work - drainage, walkways
Black appliances
Landscaping
Backsplash
Tree trimming
Fixtures as needed
Update pool furniture
*TOTAL- $8,666 per Unit
Convert Tennis Court Signage & Branding W/Ds in units Gutter clean out Pool decking & tile Misc. *TOTAL- $4,762 per Unit *Total Capex Budget- $3,404,600 * Subject to change upon closing
Sparkling Pool with Sundeck Modern Clubhouse with Coffee Bar, Business Center, & Resident Lounge State-of-the-Art Fitness Center Sports Court with Tennis and Basketball Luxer Parcel Lockers Bark Park Clothes Care Facility Barbecue Area
Address
1150 Huebner Road
City
San Antonio
County
Bexar
Year Built
1981
Units
210
Total Square Feet
163,824 SF
Average Unit Size
780 SF
Building Type
Garden
Number of Apartments Buildings
24
Number of Stories
2
Foundation
Post Tension Concrete Slab
Framing
Wood
Exterior
Stucco
Roof
Pitched Composition Shingle
HVAC
Individual - Ground - R22
Water Heater
Individual
Electrical Wiring
Copper
Plumbing
Copper
Washer/Dryer Connections
Yes
UNIT MIX
TIVONA 11500 Huebner Rd, San Antonio, TX 78230
Built................................................1981 Occupancy: .............................95% Units...............................................210
Units
Unit Type
Unit SF
MARKET RENT
RENT/SF
8
1/1
645
$858
$1.33
48
1/1
645
$749
$1.16
8
1/1
692
$923
$1.33
56
1/1
692
$800
$1.17
7
1/1
876
$910
$1.04
35
1/1
876
$915
$1.04
1
2/1
939
$1,145
$1.22
15
2/1
939
$1,010
$1.08
3
2/1
948
$1,067
$1.13
13
2/1
948
$995
$1.05
2
2/2
1,027
$1,157
$1.13
14
2/2
1,027
$1,114
$1.08
210
WT AVG.
780
$877
$1.12
1 Bed / 1 Bath - 77% 2 Bed / 1 Bath - 15% 2 Bed / 2 Bath - 8%
San Antonio On The Rise Located on the edge of South and Central Texas and just 80 miles south of Austin, San Antonio anchors the southwestern corner of the Texas Triangle that includes Houston near the Gulf coast and Dallas in the north. The San Antonio metro, home to 3.27 million people, currently ranks 31 in the Labor IQ Index of the largest 150 U.S. metros due to its job growth, net migration and GDP growth. San Antonio is one of the largest metro areas in the U.S., coming in at number 21. The growing population in the city and its suburbs, including New Braunfels, combined with similar growth in nearby Austin and its suburbs means these two population centers are headed towards merging into a single labor market similar to Dallas-Fort Worth in the near future. Much of the area’s recent growth is from higher-paying industries such as technology and cybersecurity. With 40% of the area population age 24 years and younger, San Antonio will continue to have a long-term working-age labor supply. Although rents and home prices are rising, the area remains the most affordable major housing market in Texas. In addition to forecasted continued market growth, this affordability and the metro’s moderate wage growth make San Antonio an attractive location for employers and employees.
DEMOGRAPHICS
Youthful Residents The median age of residents in this submarket is 34.0, compared to 35.7 across Greater San Antonio
5-Mile Radius
Rapid Population Growth Since 2010, the population across the submarket increased by 11.3% to surpass 78,100 in 2020. Over the same time, the population across the nation increased by 6.8%
Rising Income
Sophisticated Workforce
The median household income in the area is forecast to appreciate by 8.7% through 2025, growing to $51,973
69% of residents age 16+ work in white collar positions, compared to 63% across the region
Renters by Choice 63% of occupied housing units are renter occupied, compared to 39% across the City of San Antonio
Key Renter Age Group 23% of residents are within the key renter age group of 18 to 35 years of age
NOTABLE EMPLOYERS
Audie L Murphy Memorial Veterans Hospital
San Antonio
NORTH
Job openings by industry, posted over the past 30 days
Health Care Insurance Tech Transportation Real Estate Retail 0
200
400
600
800
1,000
The South Texas Medical Center (STMC) consists of 900 acres of medical-related facilities on the northwest side of San Antonio making it one of the largest medical districts in the US.
5.8M Patient Visits (Annually)
STMC, which directly serves 38 counties, consists of 75 medically related institutions; separate medical, dental and nursing schools, five higher educational institutions, twelve hospitals and five specialty institutions. In 2009, STMC was home to more than $350 million in construction projects. More than $1 billion in new construction projects have been completed since 2014.
165,000 Total Employees
Contributes Over $30.6B to the San Antonio Economy
Third Largest University in Texas
The San Antonio area is home to 15 colleges and universities with a total student population of more than 160,000, including Texas State University, Texas A&M University-San Antonio, and the Alamo Community College District.
Contributes Over $1.2B to the San Antonio Economy
7,000 Faculty and Staff Employed
Amazon has announced plans to construct a $20 million, 141,360-square-foot logistics hub that will employ 1,500 people.
San Antonio’s diverse industries, skilled workforce, and sustainable infrastructure make us resilient and we are ready to support significant growth from tech-focused companies like Amazon. We look forward to supporting Amazon as they grow and hire more than 1,500 San Antonians — Ron Nirenberg, San Antonio Mayor
We’re thrilled to be able to continue our growth throughout the San Antonio area. Amazon is a great place to work with highly competitive pay, benefits from day one, and training programs for in-demand careers. We’re grateful for the support we’ve received from local and state leaders and look forward to creating over 1,500 new, full-time jobs for the San Antonio community. — Alicia Boler Davis, Amazon’s Vice President of Global Customer Fulfillment
500,000 SqFt
“The Rock at La Cantera” The Spurs new campus is now officially known as The Rock at La Cantera, a multi-phase $500 million, 500,000-square-foot performance center and public outdoor event plaza, according to a news release. The property will include a state-of-the art training facility, medical and research offices, retail, park and community space.
$500M Project
1,700+ New Employees
SAN ANTONIO RIVER WALK Named by some as the American Venice,
15 Mile Destination
2.2M Annual Visitors
100+ Retailers
San Antonio’s River Walk is a 15-mile oasis, where brightly colored umbrellas line the riverbank as diners sit at tables underneath, relishing the atmosphere.
2M+ SF
Large Scale, Master-Planned Complexes to Personal Neighborhood Centers
100+ Premier Stores, Service Businesses and Restaurants
North Star Mall is one of the premier shopping destinations in San Antonio that underwent a renovation in 2008.
THE SHOPS AT LA CANTERA 4M SF
The Shops at La Cantera is an award-winning open-air shopping
194+ Retailers and Restaurants
San Antonio’s Luxury Shopping Destination
center located within the La Cantera District of San Antonio.
San Antonio International Airport (SAT) is a large $5B Economic Output
100,000 Direct & Indirect Jobs
and busy airport about 7 miles north of the city center. With 3 runways serving 24 gates across 2 terminals, it covers a total area of 2,305 acres and sees about 260 departures and arrivals every day.
San Antonio had 4.6% annualized growth and 5.7% over the last three months, according to the Current Employment Statistics
Tesla may be moving to Austin, HP to Houston and Charles Schwab to Dallas — but the Alamo City had the highest growth in six-figure salaries in Texas, according to a new study from real-estate software company Stessa
From 2015-2020, the San Antonio-New Braunfels metro logged a 163% increase in positions paying greater than $100,000 — meaning that nearly 6% of all jobs in the area delivered salaries above that coveted threshold.
The National Association of Realtors named San Antonio among its “hidden gems” for 2022 — meaning home prices here are expected to appreciate at a higher rate than most other markets
San Antonio Industry Spotlight: Tech Hiring Going Strong. San Antonio's tech industry is experiencing strong job growth. Local employers posted 784 new jobs in the last month, ranking third among local industries, according to ZipRecruiter
RENT COMPS
AVERAGE RENTS $100 BELOW RENT COMPS
AVG RENT/UNIT $2,000 The Hill at Woodway
$1,050 $1,000 Hyperion
$950
The Henry B The Joseph The Lilia @ Oakgate Woods of Elm Creek
City Crest
Spice Creek
$900 Renata
$850
Avistar on the Boulevard
700
725
750
PROPERTY NAME
775
800
825
850
875
AVG SF/UNIT
900
T E
1 2 S
4
T
3
T R
8 7
65
A T
O
9 10
T
A
T
NT
O
PAN Y
A
A
RENT
A
RENT
INCOME
Year 1
Year 2
Year 3
Year 4
Year 5
Gross Potential Income
2,521,525
2,756,675
2,954,625
3,111,749
3,209,766
Loss to Lease
-61,959
-27,567
-29,546
-31,117
-32,098
Vacancy
-148,417
-137,834
-147,731
-155,587
-160,488
Concessions
-30,254
-27,567
-29,546
-22,645
-16,049
Models, Office, Employee Units
-15,408
-16,540
-17,728
-18,670
-19,259
Bad Debt
-19,522
-13,783
-14,773
-15,559
-16,049
Effective Gross Rental Income
2,245,966
2,533,385
2,715,300
2,868,170
2,965,824
Other Income
338,511
348,807
359,417
370,349
381,613
Total Net Income
2,584,477
2,882,192
3,074,717
3,238,519
3,347,437
Real Estate Taxes
606,628
609,157
615,277
621,458
627,701
Insurance
125,733
128,271
130,860
133,502
136,196
Electric
25,827
26,348
26,880
27,422
27,976
Water and Sewer
80,843
82,475
84,139
85,838
87,570
Trash Removal
44,866
45,772
46,696
47,638
48,600
Other Utilities
10,449
10,660
10,875
11,094
11,318
Management Fee
77,534
86,466
92,242
97,156
100,423
Repairs and Maintenance
111,452
113,701
115,996
118,338
120,726
General/Admin
53,072
54,143
55,236
56,351
57,489
Advertising and Leasing
40,208
41,019
41,847
42,692
43,554
Payroll
318,430
324,857
331,414
338,103
344,928
Total Expenses
1,495,041
1,522,870
1,551,462
1,579,592
1,606,481
Expense Ration
57.8%
52.8%
50.5%
48.8%
48.0%
Net Operating Income (NOI)
$1,089,436
$1,359,322
$1,523,255
$1,658,927
$1,740,956
EXPENSES
CURRENT ASSETS UNDER MANAGEMENT
Exits & Performance PROPERTY
HOLD PERIOD
UNITS
AVG. ANNUALIZED RETURN TO LP INVESTORS
Wildcreek
3.25 years
242
20%
Villas of South Cobb I
2.5 years
188
19%
Villas of South Cobb II
2.5 years
152
19%
Ascent at Riverdale I
2 years
118
38%
Ascent at Riverdale II
2 years
62
38%
The Hills at East Cobb
3 Years
268
10%*
Reserve at Walnut Creek
3 years
284
35%
Estates at Las Colinas
3 years
415
24%
4.5 years
304
20%
The Avery Total
2055 20SS
Avg. 24.8%
* The Hills at East Cobb returns total 10% over 3 years 3% factored into average annualized return of 23%
Second Acquisition Within The Fund
CURRENT PROPERTY
Background & Market Located in Marietta, GA / Atlanta, GA MSA. Liberty Pointe is located in the path of progress, has tremendous value-add potential through a comprehensive renovation plan extending from the exterior to unit interiors. Liberty Pointe benefits from the ease of access to top employers and the continual increase of job creation. Business Plan Planned Improvements include exterior facelift, green improvements includes total overhaul retrofitting of existing toilets, shower heads, and aerators with the installation of a modern water conservation project. By taking the interior improvements to the platinum level renovation, this will allow for premium rent increases and current tenant satisfaction to reach $200-225/per unit.
PROPERTY DETAILS Asset Class
B
Location
Atlanta MSA, GA
Year Constructed
1969
No. of Units
181
Purchase Price
$37M
CURRENT PROPERTY
Background & Market Located in South Bend MSA, IN, Elevate on Main has high income rent-by-choice tenants with high demand for the highest level of interior renovations.
PROPERTY DETAILS
75% of the property interiors are to be renovated and earn a corresponding $225+ monthly rent increases.
Asset Class
B
Location
South Bend MSA, IN
Year Constructed
2000
No. of Units
400
Purchase Price
$76M
Business Plan Planned Improvements include total property reroofing, fitness center upgrades, exterior facelift with outdoor grilling station, fire pit, and dog park. Green improvements includes total overhaul retrofitting of existing toilets, shower heads, and aerators with the installation of a modern water conservation project. By taking the interior improvements to the platinum level renovation, this will allow for premium rent increases and current tenant satisfaction.
CURRENT PROPERTY
Background & Market Located in Smyrna, GA, Elevate Twenty Three is in the direct path of progress, The Battery, that has seen more than $1 billion in development over the past few years. Elevate Twenty Three’s room for improvement included exterior, amenity upgrades and extensive interior renovations Business Plan 80% of the interiors to be renovated to platinum level, this includes stainless appliances, quartz countertops, smart devices installment, and vinyl plank flooring. Modernizing the property includes removing textured wall and ceiling to a smooth and contemporary feel. Exterior improvements include massive facelift from paint, structural repairs to the building bridge catwalks and stair systems. In addition, sport court and recreational areas will be added to build value and attract supreme tenant base.
PROPERTY DETAILS Asset Class
B
Location
Smyrna, GA
Year Constructed
1986
No. of Units
222
Purchase Price
$41.1M
CURRENT PROPERTY
Background & Market Located in Marietta, GA, Veritas is directly benefiting from the redevelopment of the Franklin Gateway corridor.
PROPERTY DETAILS
Veritas’ room for improvement included exterior and amenity upgrades and unit renovations.
Asset Class
B
Business Plan
Location
Marietta, GA
Year Constructed
1980
No. of Units
192
Purchase Price
$25.8M
Planned Improvements included installing new roofs and Hardieplank siding, renovating the remaining classic units to premium level with granite and stainless steel appliances, modernizing the leasing office, interior and adding an outdoor fitness center and turf athletic field. Stabilize economic and physical occupancy while capturing increased rental revenue driven by property upgrades.
CURRENT PROPERTY
Background & Market Located in the Atlanta’s Clayton County, top 10 rent growth county in the U.S. Institutional quality seller fully renovated the amenities and interiors in 2017 offering little remaining deferred maintenance.
PROPERTY DETAILS
Local rent growth outpaced on-site rent renewals, resulting in 16+% loss to lease on site, providing Viking with the opportunity to increase rents significantly to market rate and increase both revenue and NOI at a lower renovation cost basis.
Asset Class
B+
Location
Stockbridge, GA
Year Constructed
1999
Business Plan
No. of Units
368
Minor updates to the unit interiors, pool and exteriors and upgrade fitness center to ensure Marbella Place attracts top quality tenants.
Purchase Price
$52.7M
Immediately on acquisition, raise renewal rents and new leases to market rental rates.
CURRENT PROPERTY
Background & Market Located on high traffic Georgia Avenue in Washington, D.C. and adjacent to a Metro rail stop. Petworth is a sought-after neighborhood and the lack of for-sale residential homes has increased value.
PROPERTY DETAILS
Purchased at $390,000 per rental unit with nearby condominium comps selling for $550,000 which provided $7 million of intrinsic value.
Asset Class
A
Location
Washington, DC
Year Constructed
2010
Business Plan
No. of Units
49
Efficiently operate the rental property, modernizing the lobby and common spaces to capture market rent growth and positioning the asset for condo conversion.
Purchase Price
$19.3M
The Griffin was built and zoned as condos, but delivered to market as a rental property.
Investor Relations Team invest@vikingcapllc.com
