ATLANTA, GA
3421 STEWART MILL ROAD, 30135
STEWART’S MILL
188
UNITS
1988
YEAR BUILT
VIKRAM RAYA CEO / Founder
RAVI GUPTA COO / Founder
TABLE OF CONTENTS Executive Summary
Financial Analysis
Property Description
Location Overview
Portfolio & Performance
2
Executive Summary
Property Description
Location Overview
Financial Analysis
Portfolio &
Performance
Executive Summary
INVESTMENT SUMMARY Introducing the Stewart's Mill apartment community, an exceptional investment opportunity nestled in Atlanta, Georgia. Viking Capital is pleased to present this prime offering located in the highly coveted I-20 West area, renowned for its robust economic drivers. Strategically positioned just a mile from Arbor Place Mall and nine miles west of Fulton Industrial Blvd.'s thriving industrial employment base, this 188-unit property offers compelling investment potential. Built in 1988, Stewart's Mill presents investors with an ideal chance to acquire a value-driven asset with the potential to yield average premiums of $175 or more. Atlanta and its surrounding submarkets have been experiencing sustained population growth and rent appreciation, making it a lucrative investment destination. The city's magnetic appeal extends to attractions such as the Atlanta Falcons, Hawks, and Braves, which draw enthusiastic fans year-round. Moreover, Atlanta is home to the headquarters of industry giants like Delta Airlines and Porsche, contributing to a stable economic foundation. The presence of Trilith Studios, a thriving film and entertainment hub, adds to the area's allure. With 110 hospitals and several large universities in the vicinity, Stewart's Mill enjoys a strong tenant demand from the healthcare and education sectors. This, coupled with the strategic location of the property, significant value-add potential, and numerous amenities, positions Stewart's Mill as an outstanding investment opportunity.
OFFERING SUMMARY Cap (T-12)
5.73%
Expense Ratio (T12)
47%
Physical Occupancy
95%
DSCR Yr 1
1.66x
DSCR avg.
1.83x
Purchase Price Hold Period
$28,200,000 5
Equity
$16,000,000
LP Class A LP
$1,600,000
Class B
$10,400,000
Reserve Class
$4,000,000
PROPERTY SUMMARY Stewart’s Mill Residential
Atlanta, GA
3421 STEWART MILL ROAD, 30135
188 UNITS 167,704 RENTABLE SF
19
ACRES
1988 YEAR BUILT 892
AVG UNIT SF
9.89 UNITS PER ACRE
12 11 RESIDENTIAL + 1 OFFICE PARKING: ON-SITE & 12 DETACHED GARAGES BUILDINGS:
INVESTMENT HIGHLIGHTS Asset
Financial
Economies of Scale
Value-add
19 Acres
New leases in the past 30 days
A true value-add asset,
Viking Capital owns 9 other
Clubhouse/Leasing Center
are 3% higher than in-place
Stewart’s Mill will have
properties in ATL area,
Detached Garages Available
rents (on average, roughly
$14,000/unit of renovations,
providing economies of
Dog Park/Play Area
$40 increase).
with over 73% primed for
scale.
Gazebo Gym
Renewals are right in line with
renovations.
Optionality to position this
in-place rents.
Renovations will provide over
asset to exit as a portfolio
Laundry Facility
Douglasville submarket rose
$163 of headroom for rent
along with other Viking ATL
On-Site Parking
by 48% between 2015-2023
increases.
properties. Thus increasing
Package Lockers
and is expected to continue to
Playground
grow by over 16% by 2027.
Grilling/Picnic Areas
Rentable Storage Units Resident Business Center Swimming Pool WiFi Available
Minimal concessions (0.1% on T12, 0.4% on T3).
exit liquidity, including an exit to an institutional investors.
CONSIDERABLE ORGANIC RENT GROWTH PROGRESSION VALUE-ADD UPSIDE
Unit Mix
3421 W. Stewart Mill Rd. Atlanta, GA, 30135
Property Summary
Year Completed
1988
Total Units
188
Average Unit Size (SF)
892
Physical Occupancy
95%
Avg. Effective Rents
$1,409
New Move-Ins (30 days)
$1,462
Units Primed for Upgrade
148 - 75 Partials & 73 Classics
57
$53 per unit immediately
Description
# Units
% Mix
Avg SF
Rent
Rent/SF
1 BR / 1 BA
60
32%
689
$1,251
$1.82
2 BR / 1 BA
59
31%
880
$1,399
$1.59
2 BR / 2 BA
41
22%
960
$1,464
$1.52
3 BR / 2 BA
28
15%
1,253
$1,674
$1.34
Total / Avg.
188
100%
892 SF Avg.
$1,409
$1.58
Three-Tiered Return Options A three-tiered return structure gives investors options when placing their equity. Investors have the ability to invest in either tier of equity Class A, Class B, Reserve Class, or a combination of Class A and Class B. Diversifying in both A and B classes allows for a risk-adjusted, blended return.
Three-Tiered Equity Structure
Allows Investors to Match Investment Goals Class A
Class B
Reserve Class
•
Prioritized Cash Flow
•
7% Preferred Return
•
8% Preferred Return
•
9% Preferred Return
•
70/30 Profit Share
•
80/20 Profit Share
•
No Profit Share
Minimum investment
$50,000
Minimum investment
$50,000
Minimum investment
$500,000
8
INVESTMENT OFFERING
Purchase $28,200,000 Price Debt $18,612,000 Total Equity $15,984,804
Capital Structure LP: RESERVE
$16M
LP: CLASS B Class A
LP: CLASS A
$18.6M
Debt
© Copyright 2022
Class B
Reserve Class
LP Equity
$1,600,000
$10,400,000 $4,000,000
Pref.
9%
7%
8%
Hold Period
5 Years
5 Years
5 Years
Equity Multiple 1.45x
1.8x-2.0x
2.0x-2.3x
Avg. CoC
9%
7%
8%
IRR
9%
14%
16% 9
INVESTOR RETURNS: $100,000 INVESTMENT Annual Percent Return
Class Annual Distribution A $100k Equity Split
Year 1
Year 2
Year 3
Year 4
Year 5
9%
9%
9%
9%
9%
$9,000
$9,000
$9,000
$9,000
$9,000
Total Expected Return Including Return of Principal ($100k) Annual Percent Return
Class Annual Distribution B $100k Equity Split (70/30)
$145,000
5%
5%
6%
7%
7%
$5,000
$5,000
$6,000
$7,000
$7,000 $60,000
$190,000
Total Expected Return Including Return of Principal ($100k) Annual Percent Return
Reserve Class $500k
Annual Distribution
5%
5%
6%
7%
7%
$25,000
$25,000
$30,000
$35,000
$35,000
Equity Split (80/20) Total Expected Return Including Return of Principal ($500k)
$425,000
$1,075,000 21
NEED BONUS DEPRECIATION IN 2023?
2023
80%
11
© Copyright 2022
2024
60%
2025
40%
2026
20%
2027
0%
DEBT FINANCING* LOAN PRINCIPAL
$18,612,000
LOAN TO VALUE
66%
INTEREST RATE (FIXED)
6.0%
FIXED OR ADJUSTABLE
FIXED
AMORTIZING PERIOD
30
INTEREST ONLY
24 MONTHS
58 to change before closing *Subject
SENSITIVITY ANALYSIS Cap Rate
Projected Sale Price
Deal Level IRR
Equity Multiple
AAR
4.88%
$53,420,542
20.03%
2.32x
26.41%
4.93%
$52,878,752
19.69%
2.29x
25.76%
4.98%
$52,347,841
19.34%
2.26x
25.13%
5.03%
$51,827,484
19.00%
2.23x
24.51%
5.08%
$51,317,371
18.66%
2.20x
23.90%
5.13%
$50,817,202
18.32%
2.17x
23.31%
5.18%
$50,326,688
17.99%
2.14x
22.73%
5.23%
$49,845,554
17.66%
2.11x
22.15%
5.28%
$49,373,531
17.33%
2.08x
21.59%
5.33%
$48,910,365
17.00%
2.05x
21.04%
5.38%
$48,455,808
16.68%
2.03x
20.50%
5.43%
$48,009,622
16.36%
2.00x
19.97%
5.48%
$47,571,578
16.04%
1.97x
19.45%
5.53%
$47,141,455
15.72%
1.95x
18.94%
5.58%
$46,719,041
15.40%
1.92x
18.43%
5.63%
$46,304,129
15.09%
1.90x
17.94%
SENSITIVITY ANALYSIS Hold Period
Cash Flow
AAR
EM
1
5.40%
0.75%
1.01x
2
5.40%
19.39%
1.39x
3
5.70%
23.59%
1.71x
4
5.64%
23.07%
1.92x
5
5.73%
22.15%
2.11x
6
5.89%
21.55%
2.29x
7
6.09%
21.28%
2.49x
8
6.31%
20.86%
2.67x
9
6.54%
20.69%
2.86x
10
6.79%
20.90%
3.09x
Executive Summary
Property Description
Location Overview
Financial Analysis
Portfolio &
Performance
Financial Analysis 56
PROFORMA
INCOME
1
2
Gross Potential Income
3,322,702
3,563,251
- Loss to Lease
(46,666)
-1.4%
(35,633)
-1.0%
(38,042)
-1.0%
(28,796)
-0.7%
(20,381)
-0.5%
- Vacancy
(184,357)
-5.5%
(178,163)
-5.0%
(190,210)
-5.0%
(197,794)
-5.0%
(203,810)
-5.0%
- Concessions
(12,315)
-0.4%
(10,690)
-0.3%
(7,258)
-0.2%
(3,956)
-0.1%
(4,076)
-0.1%
- Models, Office, Employee Units
(11,943)
-0.4%
(9,606)
-0.3%
(10,256)
-0.3%
(10,664)
-0.3%
(10,989)
-0.3%
- Bad Debt
(96,580)
-2.9%
(51,753)
-1.5%
(38,042)
-1.0%
(39,559)
-1.0%
(40,762)
-1.0%
Effective Gross Rental Income
2,970,842
3,277,406
3,520,391
3,675,105
3,796,178
Other Income
320,161
329,899
339,933
350,273
360,927
Total Net Income
3,291,003
3,607,306
3,860,325
4,025,378
4,157,105
4
Units renovated
40
60
37
0
0
Renovation Premiums earned
8,200
12,300
7,125
0
0
3,804,199
5
3,955,874
4,076,196
Renovations
EXPENSES
/unit
/unit
/unit
/unit
/unit
Real Estate Taxes
422,390
2,247
426,633
2,269
430,919
2,292
435,248
2,315
439,621
2,338
Insurance
133,034
708
135,720
722
138,459
736
141,254
751
144,105
767
Contract Services
85,277
454
86,999
463
88,755
472
90,546
482
92,374
491
Electric
34,502
184
35,198
187
35,908
191
36,633
195
37,373
199
0
0
0
0
0
0
0
0
0
0
Water and Sewer
93,171
496
83,239
443
84,919
452
86,633
461
88,382
470
Trash Removal
62,305
331
63,562
338
64,845
345
66,154
352
67,489
359
Other Utilities
270
1
276
1
281
1
287
2
293
2
Management Fee
98,730
525
108,219
576
115,810
616
120,761
642
124,713
663
Repairs and Maintenance
95,025
505
96,943
516
98,899
526
100,896
537
102,932
548
General/Admin
57,015
303
58,166
309
59,340
316
60,537
322
61,759
329
Advertising and Leasing
38,010
202
38,777
206
39,560
210
40,358
215
41,173
219
Payroll
323,084
1,719
329,605
1,753
336,258
1,789
343,045
1,825
349,969
1,862
Total Expenses
1,442,812
7,675
1,463,336
7,784
1,493,953
7,947
1,522,353
8,098
1,550,182
8,246
Gas
$758K OF NOI GROWTH INCREASES STEWART’S MILL VALUE BY $11.4 MILLION
3
% EGI
*Subject to change before closing
Net Operating Income (NOI)
43.8%
40.6%
$1,848,191
$2,143,970
38.7%
37.8%
37.3%
$2,366,372
$2,503,025
$2,606,922
$11,400,000
VALUE-ADD UPSIDE 3 Bedroom / 2 Bathroom 28 Classic Units 6 Renovated Units 13 Partially Renovated Units
73% Units Primed for Upgrades
1 Bedroom / 1 Bathroom 60 Classic Units 8 Renovated Units 22 Partially Renovated Units
2 Bedroom / 2 Bathroom 41 Classic Units 7 Renovated Units 17 Partially Renovated Units
2 Bedroom / 1 Bathroom
59 Classic Units 19 Renovated Units 2 Partially Renovated Units
CONSIDERABLE ORGANIC RENT GROWTH PROGRESSION VALUE-ADD UPSIDE
1 Bedroom / 1 Bathroom
2 Bedroom / 2 Bathroom
Classic Units $1,224
Classic Units $1,396
Renovated Units $1,370
Renovated Units $1,601
$146/ Unit Upside
$205/ Unit Upside
2 Bedroom / 1 Bathroom
3 Bedroom / 2 Bathroom
Classic Units $1,314
Classic Units $1,568
Renovated Units $1,553 $239/ Unit Upside
Renovated Units $1,848 $280/ Unit Upside
VIKING CAPITAL WILL IMPLEMENT OUR VALUE ADD BUSINESS PLAN ON 73% OF UNITS.
VALUE-ADD UPSIDE
Classic Units The property features 40 renovated units, 75 partially renovated units, and 73 classic units. Viking Capital plans to renovate 148 units to achieve premiums of $175+. Fully renovated units at Stewart's Mill include laminate (formica) countertops, stainless steel appliances, brand-new shaker-style cabinetry, subway tile backsplash, brushed nickel hardware, luxury vinyl flooring, and other top-of-the-market features.
Laminate Countertops White Appliances Original Lighting/Fixtures Brown Cabinets Faux-Wood /Tile in Wet Areas Only
$210 Premium for Classic to Elite Units
Partial Units PREVIOUS OWNERSHIP RENOVATED UNIT
New Laminate Countertops Painted Cabinets Black Appliances Upgraded Lighting/Fixtures
$175 Premium for Partial to Elite Units
Elite Units FULLY RENOVATED UNIT
Faux Marble Countertops Painted Cabinets /new Hardware Stainless-Steel Appliances Faux-Wood Flooring Upgraded Lighting/Fixtures
$14,000 The average cost for interior upgrades
CLASSIC UNIT Laminate Countertops White Appliances Original Lighting/Fixtures Brown Cabinets Faux-Wood /Tile in Wet Areas Only
FULLY RENOVATED UNIT Faux Marble Countertops Painted Cabinets / New Hardware Stainless-Steel Appliances Faux-Wood Flooring Upgraded Lighting / Fixtures
ELITE UNIT
Executive Summary
Property Description
Location Overview
Financial Analysis
Portfolio & Performance
Property Description 14
Stewart’s Mill Atlanta, GA 188
UNITS
1988
PARK 33
Desirable Location - Stewart's Mill is situated in the desirable I-20 West submarket, providing excellent access to major Atlanta job centers including downtown Atlanta and the metro's largest industrial hub - the Fulton Industrial Corridor. This allows for an easy commute for residents. Quality Asset - Previous ownership has invested over $3.5M into capital improvements including new roofs, amenity upgrades, flooring, and several interior/exterior repairs. The asset is in good physical condition.
YEAR BUILT
892
AVG UNIT SF
167,704
RENTABLE SF
9.89
UNITS PER ACRE
19
ACRES
$1.65
AVG. EFFECTIVE RENT / SF
$1,409
AVG. EFFECTIVE RENT
Clear Value-Add Strategy - The investment highlights a clear value-add blueprint with the opportunity to renovate 148 of the 188 units to achieve rental premiums of over $167 per unit. Strong Submarket Rental Growth Within the Douglasville submarket, average effective rents have increased by 48% since 2015. Effective rent is expected to continue increasing by over 16% by 2027 Economies of Scale- We have multiple ATL properties, and an efficient property management company in ATL that can create economies of scale. Strong Economic Drivers - Strong population growth. Atlanta’s 29-county Metropolitan Statistical Area is the ninth-largest and one of the fastestgrowing metro areas in the nation.
MODERN FITNESS CENTER
RESORT STYLE-POOL
RESIDENT CLUBHOUSE
PLAYGROUND
POOLSIDE OUTDOOR KITCHEN
PROPERTY INFORMATION Number of Units
188 Units
Year Built
1988
Stories
Two-Three Stories
Net Rentable Area
167,704 SF
Average Unit Size
892 SF
Schools Elementary School
Holly Springs Elementary
Middle School
Chapel Hill Middle School
High School
Chapel Hill High School
Property Policy Information
Systems & Utilities
Security Deposit
HVAC / Hot
1 Month's Rent
Pet Fee
$300 non-refundable
Pet Rent
$15/Pet/Month
1 Full Time Property Manager 1 Full Time Leasing Agent
Maintenance
Electric - Greystone Electric
Water/Sewer
Douglasville Water & Sewer
Trash Removal
City of Douglasville
All Services Paid by Resident
Staffing Office
Water/Cooling
1 Full Time Maintenance Supervisor 1 Full Time Maintenance Tech
POOL - TOP VIEW
COMMUNITY AMENITIES Clubhouse/Leasing Center Detached Garages Available Dog Park/Play Area Gazebo Gym Grilling/Picnic Areas Laundry Facility On-Site Parking Package Lockers Playground Rentable Storage Units Resident Business Center Swimming Pool
RESORT-STYLE POOL
MODERN FITNESS CENTER
RESIDENT CLUBHOUSE
PLAYGROUND
3 BEDROOM 28 UNITS
15%
1 BEDROOM 60 UNITS
32%
2 BEDROOM 100 UNITS
53%
UNIT MIX
UNIT AMENITIES Breakfast Bar/Pass-Through
Stainless Steel Appliances
Cable & Internet Ready
Tiled Kitchen Backsplash
Faux-Granite Countertops
Walk-In Shower
Fireplace - Wood Burning
W/D Appliances Included
Fully Equipped Kitchens
W/D Connections
Laundry/Utility Room
Window Blinds
Patio or Balcony
Wood-Style Flooring
N
SITE PLAN
FLOOR PLANS
1 BEDROOM, 1 BATH | 689 SF
2 BEDROOM, 1 BATH | 880 SF
2 BEDROOM, 2 BATH | 960 SF
3 BEDROOM, 2 BATH | 1,253 SF
Executive Summary
Property Description
Location Overview
Financial Analysis
Portfolio &
Performance
Rent Comparison Overview 36
RENT COMPARABLES One Bedrooms Brook Valley Apartment Homes
$1,250
Lakeside at Arbor Place
$1,325
Carrington Point
$1,238
Douglasville Proper
$865
Brookview
$146 Headroom for Rent Increases
$1,077
Stewart's Mill
$1,384
Arbor Place
$1,517
Park West
$1,344
One Rocky Ridge
$1,709 $0
$500
$1,000
$1,500
$2,000
RENT COMPARABLES Two Bedrooms Brook Valley Apartment Homes
$1,496
Lakeside at Arbor Place
$225 Headroom for Rent Increases
$2,061
Carrington Point
$1,385
Douglasville Proper
$1,020
Brookview
$1,846
Stewart's Mill
$1,583
Arbor Place
$1,517
Park West
$1,669
One Rocky Ridge
$2,138 $0
$500
$1,000
$1,500
$2,000
$2,500
RENT COMPARABLES Three Bedrooms Lakeside at Arbor Place
$3,022
$280 Headroom for Rent Increases
$1,620
Carrington Point Douglasville Proper
$1,175
Brookview
$1,429
Stewart's Mill
$1,671
Arbor Place
$1,706 $1,825
Park West One Rocky Ridge
$2,072 $0
$1,000
$2,000
$3,000
$4,000
Executive Summary
Property Description
Location Overview
Financial Analysis
Submarket Overview 36
Portfolio &
Performance
DEMOGRAPHICS SUMMARY AVERAGE HOUSEHOLD INCOME ONE MILE
$76,251
THREE MILE
$88,098
FIVE MILE
$82.249
EXPECTED INCOME GROWTH BY 2027 ONE MILE
11.89%
THREE MILE
11.66%
FIVE MILE
11.60%
% OF POPULATION WITH COLLEGE EDUCATION ONE MILE
61.2%
THREE MILE
60.6%
FIVE MILE
58.3%
WHITE COLLAR EMPLOYMENT ONE MILE
55.1%
THREE MILE
59.9%
FIVE MILE
58.1%
MEDIAN AGE ONE MILE
36
THREE MILE
38
FIVE MILE
37
DOUGLASVILLE, GEORGIA POPULATION 2023
14% GROWTH EXPECTED 2023-2029 40K
6.6% Growth since 2020 85% Growth since 2000
37,118
30K
10K
1910
1970
2020
DEMOGRAPHICS SUMMARY
ATLANTA SUBMARKET EFFECTIVE RENT GROWTH
29%
RENTER OCCUPIED HOUSING
$80,000 AVG. HOUSEHOLD INCOME
48%
WHITE COLLAR JOBS
STRONG SUBMARKET DEMOGRAPHICS 5-MILE RADIUS
FAVORABLE APARTMENT MARKET DOUGLASVILLE SEEING RAPID RENT GROWTH The Douglasville submarket offers easy access to Atlanta’s largest employment centers. The immediate area surrounding the subject continues to improve, which has supported rapid rent growth.
DOUGLASVILLE’S RISING RENTS With a limited development pipeline, rents have consistently increased. The average effective rent for Douglasville rose by 48% between 2015- 2023, and is expected to continue to grow by over 16% by 2027. Since 2020, the population of Douglas County has experienced significant growth, welcoming over 3,000 new residents, and further highlighting the area's desirability.
48%
6.50%
Growth in average effective rent since 2015
Q2 2023 Average submarket vacancy
2 18
LOCATION OVERVIEW/ NEARBY ATTRACTIONS
3 17 20
14
63,5 00 VPD
16
11
1
5
7
6
10 12
13
9
8 15 RD . 24 G A -5 /B IL L A RP
,
90 0 V P D
4
STEWARTS MILLS
MAJOR EMPLOYERS 1. U.S. Post Office 2. Martin Marieeta Douglasville Quarry & CW Matthews Contracting 3. Industrial Park (Gatorade, Pepsi Co., JJ Haines Flooring, Chadwell Supply)
RETAIL 4. Publix Super Market at Cosby Station 5. Douglasville Town Center 6. Park Place Shopping Center 7. The Home Depot 8. Kroger 9. Home Goods
POINTS OF INTEREST 10. Lowe’s Home Improvement 11. At Home & Douglas Corner Shopping Center 12. Market Square Shopping Center 13. Best Buy 14. Sam’s Club & Walmart Supercenter
15. Talerico Lake 16. West Douglas Park & Ride 17. Bright Star Elementary School 18. Hunter Memorial Park & Douglas County Boys & Girls Club
Stewart’s Mill
DOWNTOWN & MIDTOWN ATLANTA (40.4M SF Office, 327K Jobs)
5
3
10
2
1
TY ER
6
OP
D
21
MIL
TY
FR
OM
PR
PROPER
,5
VP
ES FROM
63
00
7
9
ES
20
8
10 .5 M IL
LOCATION OVERVIEW/ NEARBY ATTRACTIONS
4
STEWARTS MILL
11
12
MAJOR EMPLOYERS 1. WellStar Douglas Hospital (102 Beds) 2. West Georgia Technical College Douglas Campus (7,331 total enrollment) 3. Douglas County Sheriff’s Office 4. Vulcan Materials Co./E R Snell 5. I-20 WEST/FULTON INDUSTRIAL DISTRICT (about 7.5 square miles of mostly industrial space that has a workforce of more than 40,000 people and approximately 94M SF of industrial space)
RETAIL 6. Arbor Place Mall & Regal Theaters 18 (1.2M SF retail, 140+ stores including Belk, Dillard’s, Macy’s, JCPenney) 7. The Landing of Arbor Place shopping center
POINTS OF INTEREST 8. Douglasville Pavilion (Marshalls, Target, Petsmart, Starbucks, Restaurants) 9. Village at Chapel Hill & Hobby Lobby, Kohl’s 10. Ingles Market
11. Arbor Station Elementary School 12. Talerico Lake
DRIVING TIME TO MAJOR JOB HUBS PLATINUM TRIANGLE 28 MINUTES
FULTON INDUSTRIAL 12 MINUTES
Stewart’s Mill is 20 minutes from downtown Atlanta.
STEWART'S MILL
DOWNTOWN 26 MINUTES
SOUTHWEST INDUSTRIAL
ATLANTA AIRPORT
30 MINUTES
30 MINUTES
CLOSE PROXIMITY TO MANY MAJOR CITIES
32 Miles to Duluth
27 Miles to Atlanta Atlanta Stewart’s Mill
250 Miles to Nashville
442 Miles to Orlando
Executive Summary
Property Description
Location Overview
Financial Analysis
Location Overview 36
Portfolio &
Performance
1
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#1 Best State for Doing Business
Largest Black Tech Workforce Comp TIA 2021
LEADING JOB PROVIDERS DELTA AIRLINES Delta Air Lines is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia.
EMORY UNIVERSITY & EMORY HEALTHCARE Emory Healthcare is part of Emory University and is the largest healthcare system in the state. It comprises 11 hospitals, the Emory Clinic and more than 250 provider locations.
THE HOME DEPOT The Home Depot, Inc., is an American multinational home improvement retail corporation that sells tools, construction products, appliances, and services, including fuel and transportation rentals.
COCA-COLA Dr. John S. Pemberton, the inventor of Coca-Cola, served the beverage for the first time at Jacobs’ Pharmacy in Downtown Atlanta. Nearly 130 years later, The Coca-Cola Company remains headquartered just over 1 mile from where the iconic beverage was first enjoyed.
NORTHSIDE HOSPITAL The Northside Hospital System is a hospital network in the Atlanta area of Georgia in the United States. Its specialties include oncology, gynecology, neurology, orthopedic surgery, and gastroenterology.
UPS UPS is a transportation company focusing on package delivery, specialized logistics services, and global commerce enablement. Headquartered in Atlanta, GA.
ATTRACTIONS AND TOURISM Georgia Aquarium Georgia Aquarium is a public aquarium in Atlanta, Georgia, United States. It exhibits hundreds of species and thousands of animals across its seven major galleries, all of which reside in more than 11 million US gallons of water.
Attractions in Atlanta include the largest aquarium in the western hemisphere, the CNN Center, the Fox Theater, the King Center and the new $1.5 billion home of the Atlanta Falcons football franchise, Mercedes-Benz Stadium. Hartsfield-Jackson Atlanta International Airport is the world’s busiest airport, making the city a hub for business and tourism travelers alike.
CNN CENTER The CNN Center in Atlanta, Georgia, is the international headquarters of the Cable News Network. The main newsrooms and studios for several of CNN's news channels are located in the
ATLANTA HAWKS | STATE FARM ARENA
ATLANTA BRAVES | TRUIST PARK
building.
FOX THEATRE The Fox Theatre, a former movie palace, is a performing arts venue located at 660 Peachtree Street NE in Midtown Atlanta, Georgia, and is the centerpiece of the Fox Theatre Historic District.
ATLANTA UNITED FC | MERCEDES-BENZ STADIUM
ATLANTA FALCONS | MERCEDES-BENZ STADIUM
IDEALLY POSITIONED NEAR HARTSFIELD-JACKSON AIRPORT
$70.9 B TOTAL ECONOMIC IMPACT 275,000 PASSENGERS PER DAY 63,000 EMPLOYEES 2,700 FLIGHTS EACH DAY
As Georgia’s largest employer with 63,000 jobs, Hartsfield-Jackson Atlanta International Airport generates an economic impact of $70.9 billion in the state of Georgia and $34.8 billion in metro Atlanta.
ENTERTAINMENT INDUSTRY: $4.4 ECONOMIC IMPACT
Home to Avengers: Endgame Trilith Studios is an American film and television production studio located in Atlanta, Georgia. Originally known as Pinewood Atlanta Studios, the studio has been used to produce many films and television programs, particularly those produced by Marvel Studios.
ANNUAL ECONOMIC IMPACT OF $4.4B New insights on Georgia's rapidly growing entertainment industry reveal how industry investment boosts rural and suburban economic development, provides workforce opportunities for Georgia's diverse labor markets, and reinforces the goal of building Georgia's status as a global digital entertainment capital. Source: Georgia State University
METRO ATLANTA SNAPSHOT
Opened its $100M North American HQ in 2015 next to Hartsfield-Jackson International Airport and added 400 jobs.
1
ATLANTA CONTINUES TO OUTPERFORM
2
EXCELLENT ACCESS TO ATLANTA JOBS
3
FAVORABLE APARTMENT MARKET
4 5
Atlanta, the largest city in the No. 1 ranked state for business climate, has proven particularly attractive to tech companies looking to capitalize on its deep and diverse talent pool and entrepreneurial spirit. Situated less than a mile off of I-20, Stewart's Mill is a quick commute to major Atlanta job hubs and is easily accessible to Georgia's busy film industry, which is concentrated in Southwest Atlanta. Within the Douglasville submarket, average effective rents have increased by 48% since 2015. Effective rent is expected to continue increasing by over 16% by 2027. QUALITY ASSET
The asset received a total facelift with new roofs, asphalt repairs, amenity upgrades, and several other interior/exterior capital improvements. The physical plant is in great shape and primed for future growth. VALUE-ADD BLUEPRINT IN PLACE
Current ownership has fully renovated only 21% of the property. By upgrading the remaining 148 units to the existing "full" renovation level, the property can anticipate rental premiums of $175+.
HIGHER EDUCATION GEORGIA INSTITUTE OF TECHNOLOGY EMORY UNIVERSITY SPELMAN COLLEGE MOREHOUSE SCHOOL OF MEDICINE GEORGIA STATE UNIVERSITY
TOP 5 EMPLOYMENT INDUSTRIES
HEALTH CARE AND SOCIAL ASSISTANCE Employed: 325,121 (10.7% of total employment)
RETAIL TRADE
EDUCATIONAL SERVICES
Employed: 316,482 (10.4% of total employment)
Employed: 268,425 (8.8% of total employment)
PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES
MANUFACTURING
Employed: 308,537 (10.2% of total employment)
Employed: 265,364 (8.7% of total employment)
ATLANTA
AWARDS AND ACCOLADES #1 #1
#1
Most Livable Towns and Cities in America, Outside 2021
World’s Busiest Airport, Airports Council International, 2022
Trending Destination for 2022, Booking.com
#1 #1 #1
Best City for Diversity in Tech Workforce, Beyond HQ 2022
Top State for Doing Business, Area Development 2022
Best Place to Live in the United States, Money 2022
CATALYST FOR ATLANTA’S GROWTH As of April of this year, Atlanta’s unemployment rate
Metro Atlanta offers access to extensive healthcare
had fallen below 3% to reach an all-time low, even as
systems, including 110 hospital locations with more
the labor force has more than fully recovered post-
than 10,000 total beds and more than 90,000
pandemic.
hospital workers
In 2021, there were slightly over 27,000 residential building permits issued in the 11-county region.
Metro Atlanta houses the headquarters of 30 companies in the 2021 Fortune 1000, of which 17 companies are ranked in the elite Fortune 500. In
With 292,000 students enrolled in the 54 two- and four-year colleges and universities in the metro Atlanta/Athens area. Georgia ranks as the #1 State for Leading Workforce Development Programs (Area Development, 2022).
fiscal year 2020, these companies generated aggregate revenues of more than $429 billion.
Since 1998, Hartsfield-Jackson Atlanta International Airport (ATL) has been the busiest airport in the United
In the fiscal year 2022, 412 productions were filmed in the Peach State with $4.4B in direct spending going into Georgia’s economy.
States, and functions as headquarters for Delta Air Lines.
Catalyst for Atlanta’s Growth
#1 Busiest Airport in the World
Port of Brunswick
Record Industrial Warehouse Demand
Port of Savannah
Highway Infrastructure
Nation’s Busiest for Auto Imports
Fastest Growing Port in the U. S.
Over 80% of the U.S. is within a 2-day truck drive
Railroad Access
CSX’s Fairburn terminal is the company’s 9th largest
Executive Summary
Financial Analysis
Property Description
Location Overview
Portfolio &
Performance
Portfolio & Performance
ABOUT VIKING CAPITAL Viking Capital was founded in 2015 and has become a premier multifamily investment firm with agile investment sourcing, structuring, execution, and asset management capabilities and the flexibility to scale and cater to investor preferences. Through its team of acquisitions, asset management, and disposition experts, Viking Capital invests in tier 1, secondary and tertiary markets across the United States.
MEET OUR TEAM
Vikram Raya CEO, Co-Founder
Ed Monarchik Director of Asset Management
Ravi Gupta COO, Co-Founder
Chris Parrinello Director of Investor Relations
Judah Fuld VP of Acquisitions
Amanda Loveless Director of Operations
Nathan Loy Director of Strategic Planning
Amir Nassar Investor Relations Manager
Ashley Penrod Director of Marketing
Amber Butler Investor Concierge
SUSTAINABILITY & GREEN INITIATIVES ESG Platform: Viking has rolled out an ESG initiative across all properties to minimize environmental impact and enhance communities. Eco-Friendly Tech: Regular integration of watersaving mechanisms, LED lights, and smart thermostats and doors. Solar Exploration: Viking Capital is actively considering solar solutions for suitable properties.
OUR TRACK RECORD 24
$771
5,030
Properties Acquired
In Assets Acquired
Units under Management
million
24% Average LP AAR
CURRENT & PREVIOUS PROJECTS
Property
Sold/Current
Market
Units
Purchase Price
Wildcreek
Sold 2018
Atlanta
242
$22,350,000
Villas of South Cobb I
Sold 2018
Atlanta
188
$17,782,494
Villas of South Cobb II
Sold 2018
Atlanta
152
$15,317,506
Ascent at Riverdale I
Sold 2019
Atlanta
118
$7,600,000
Ascent at Riverdale II
Sold 2019
Atlanta
62
$5,900,000
The Hills at East Cobb
Sold 2021
Atlanta
266
$35,000,000
Towne Oaks Townhomes
Sold 2021
Tyler, TX
90
$7,000,000
Reserve at Walnut Creek
Sold 2022
Austin
284
$36,300,000
The Avery
Sold 2022
Dallas
304
$41,000,000
Estates at Las Colinas
Sold 2022
Dallas
415
$61,750,000
Park Village Apartments
Current
Dallas
350
$31,350,000
The Hype
Current
Atlanta
16
$6,700,000
Veritas at East Cobb
Current
Atlanta
192
$25,800,000
The Griffin
Current
Washington, DC
49
$19,300,000
Marbella Place
Current
Atlanta
368
$55,000,000
Elevate Twenty-Three
Current
Atlanta
222
$41,000,000
Elevate on Main
Current
Indiana
400
$76,000,000
Elevate at the Pointe
Current
Atlanta
181
$37,000,000
Elevate at Huebner Grove
Current
San Antonio
210
$26,000,000
Kings Cove
Current
Houston
192
$34 ,000,000
Elevate Woodstock
Current
Atlanta
120
$19,600,000
Elevate Eagle’s Landing
Current
Atlanta
167
$39,250,000
Elevate Greene
Current
Atlanta
252
$57,250,000
Park 33
Current
South Bend
188
$33,250,000
5,028
$750M +
TOTAL
CURRENT ASSETS UNDER MANAGEMENT Property
Units
Purchase Price
Equity Raise
Closing Date
Park 33
188
$33,250,000
$15,300,000
Sept- 23
Elevate Greene
252
$57,250,000
$34,000,000
Mar-23
Elevate Eagle's Landing
167
$39,250,000
$22,400,000
Dec-22
Elevate Woodstock
120
$19,600,000
Fund Asset
Aug-22
Kings Cove
192
$34,000,000
Fund Asset
Apr-22
Elevate at Huebner Grove
210
$26,000,000
Fund Asset
Mar-22
Elevate at the Pointe
181
$37,000,000
$11,500,000
Dec-21
Elevate on Main
400
$76,000,000
$20,700,000
Sept-21
Elevate Twenty-Three
222
$41,000,000
$11,000,000
Jun-21
Marbella Place
368
$52,700,000
$19,110,000
Jan-21
The Griffin
49
$19,300,000
$7,716,000
Jul-20
Veritas at East Cobb
192
$25,800,000
$11,250,000
Dec-19
EXITS & PERFORMANCE
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 Colina's
3 Years
415
24%
The Avery
4.5 Years
304
20%
2,033
Avg. 24%
Property
Total
* The Hills at East Cobb returns total 10% over 3 years
Park 33
Background & Market
LATEST ACQUISITION | CLOSED SEPTEMBER 2023
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. A light value add to increase rents across the property. Strong Economic Drivers make this submarket a profitable investment offering.
Business Plan
B+
South Bend,IN
2018
188
$33.25M
Asset Class
Location
Year Constructed
No. of Units
Purchase Price
Green improvements include total overhaul retrofitting of existing toilets, shower heads, and aerators with the installation of a modern water conservation project. Taking interior improvements to the platinumlevel renovation will increase rent premiums and tenant satisfaction. Economies of scale with surrounding Viking properties creates management efficiencies and decrease staffing costs.
Elevate Eagles Landing Background & Market The Crossing at Eagle’s Landing comprises eight 2, 3 and 4-story residential buildings, one clubhouse and 4 garage structures, located in the heart of the rapidly growing South Atlanta Industrial Submarket, the second largest market in the Atlanta MSA. Easily accessible, the property is well-situated between major interstate I-75 and Route 23. The unit mix is favorably weighted toward larger floor plans, with 103 two-bedroom, 28 one-bedroom and 36 three-bedroom apartments.
CURRENT PROPERTY
Business Plan
B+
Atlanta, GA
2006
176
$39.25M
Asset Class
Location
Year Constructed
No. of Units
Purchase Price
The newer 2006 vintage carry little deferred maintenance, especially with new roofs installed in 201415. As a result, Viking will be able to immediately focus on renovating units and efficiently managing the rent roll to raise rents to market. Viking Capital aims to raise Eagle's Landing $1,702 inplace average to the on-site $1,860 average rent achieved in 10% of the rent roll over the last two months. We will also strategically look to renovate the partially renovated and classic units to the elite standard.
Elevate Greene
Background & Market Elevate Green is a 2005 built asset located in Henry County which has long been an outperforming industrial submarket due to ideal proximity to I-75 and the Hartsfield-Jackson International Airport (30 min. drive) Convenient access to interstate highways, national train systems, and global ports. Attractive floor plans include large floor plans and unit mixes weighted toward large two and three-bedrooms. Offers a wide range of amenities, including a pool with poolside BBQ & a picnic pavilion, fire pit, bark park, walking trail, gated entrance, private garages and storage units available, playground, tennis court, car care center, and a package locker.
CURRENT PROPERTY
Business Plan
B
Atlanta, GA
2005
252
$57.25M
Asset Class
Location
Year Constructed
No. of Units
Purchase Price
Through strategic management, Viking Capital aims to raise Crossings at McDonough’s $1,565 in-place average rents to $1,689 per unit. The market has proven demand for higher quality interiors and the previous owner has proven this out, earning $219-$600 in premiums and comps indicating market surety of these rates. These renovations will complement our efficient operations which leverage our best-in-class third-party property management team.
Elevate Twenty-Three
Background & Market Located in Smyrna, GA, Elevate Twenty-Three is located near The Battery in the direct path of progress 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
CURRENT PROPERTY
Business Plan
B
Smyrna, GA
1986
222
$41.1M
Asset Class
Location
Year Constructed
No. of Units
Purchase Price
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 through 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
Veritas at East Cobb CURRENT PROPERTY
Background & Market Located in Marietta, GA, Veritas is directly benefiting from the redevelopment of the Franklin Gateway corridor Veritas’ room for improvement included exterior and amenity upgrades and unit renovations
Business Plan 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
B
Marietta, GA
1980
192
$25.8M
Asset Class
Location
Year Constructed
No. of Units
Purchase Price
Marbella Place 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 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.
Business Plan
B+
Stockbridge, GA
1999
368
$52.7M
Asset Class
Location
Year Constructed
No. of Units
Purchase Price
Minor updates to the unit interiors, pool and exteriors and upgrade fitness center to ensure Marbella Place attracts top quality tenants Immediately on acquisition, raise renewal rents and new leases to market rental rates
STEWART’S MILL *Limited Shares Remaining. Scan the code & Register Now to learn more about this investment opportunity in the booming economy of Atlanta
CONTACT US invest@vikingcapllc.com vikingmultifamily.com