LAND BANK LOFTS 1401 Hampton Street | Columbia, SC 29201
*506(c)-open only to Accredited Investors
LAND BANK LOFTS PREMIER APARTMENT HOMES
113 UNITS COLUMBIA, SC
TABLE OF CONTENTS Disclaimer Executive Summary Property Benefits Property Profile Business Plan Market Analysis Financial Analysis Management Team Portfolio Contact/Soft Reserve
9 10 13 18 23 33 45 54 58 60
113 Units | Columbia, SC Great Location in the Heart of Columbia’s Business and Entertainment District
DISCLAIMER This Business Plan contains privileged and confidential information and unauthorized use of this information in any manner is strictly prohibited. If you are not the intended recipient, please notify the sender immediately. This Business Plan is for informational purposes and not intended to be a general solicitation or a securities offering of any kind. The information contained herein is from sources believed to be reliable, however no representation by Sponsor(s), either expressed or implied, is made as to the accuracy of any information on this property and all investors should conduct their own research to determine the accuracy of any statements made. An investment in this offering will be a speculative investment and subject to significant risks and therefore investors are encouraged to consult with their personal legal and tax advisors. Neither the Sponsor(s), nor their representatives, officers, employees, affiliates, sub-contractor or vendors provide tax, legal or investment advice. Nothing in this document is intended to be or should be construed as such advice. The SEC has not passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials. However, prior to making any decision to contribute capital, all investors must review and execute the Private Placement Memorandum and related offering documents. The securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities. Potential investors and other readers are also cautioned that these forward-looking statements are predictions only based on current information, assumptions and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by such forward looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project, “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. These forward-looking statements are only made as of the date of this executive summary and Sponsors undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
EXECUTIVE SUMMARY
A LIFESTYLE OF REFINED LIVING AND HISTORIC LEGACY The roots of 1401 Hampton Street date back to 1924 when the AgFirst Farm Credit Bank became part of the Columbia skyline. Now transformed into Land Bank Lofts, the history of this stunning building adds one-of-a-kind notes of reminiscent character with exposed metal bank vault doors, original wood flooring, French doors, marble columns, and 16-foot ceilings in select areas. The story of the AgFirst Farm Credit Bank building has a rich number of chapters before the bank officially adopted that name and was refined into luxury urban residences. Following the passage of the Farm Credit Act of 1916, the Federal Land Bank of Columbia was chartered on March 16, 1917, where the bank occupied space in the Palmetto Building on Main Street until 1924. In June 1922, the bank bought a lot at the corner of Hampton and Marion Streets for the construction of its own building, which was purchased from Julius H. Taylor for $18,000. The original three-story building was designed by A. Ten Eyck Brown of Atlanta, a prominent architect who designed many public buildings in the Southeast. The Federal Intermediate Credit Bank of Columbia was chartered on March 16, 1923, and shared offices with the Federal Land Bank when the building was completed in 1924. In 1935, renovations were made to the original building and a six-story addition was completed, providing picturesque views overlooking the downtown area. The original building and addition were constructed with a mix of granite, Indiana limestone, and brick, and the Otis elevators installed in 1935 are still in service for resident use. In 1995, the Farm Credit Banks of Columbia and Baltimore consolidated to become AgFirst Farm Credit Bank. Perhaps some of the most notable features of the building include artistic elements by local artist, Blue Sky, that have been preserved over the years — a 50’ x 75’ “Tunnelvision” mural painted in 1975; the “Light at the end of the Tunnel” mural painted in 2000; and a four-story, 675,000 pound sculpture, “Busted Plug Plaza,” unveiled in 2001.
INVESTMENT SUMMARY LAND BANK LOFTS COLUMBIA, SC XSITE Capital Investments is pleased to announce that we’ve identified Land Bank Lofts for acquisition. Located in downtown Columbia, SC, Land Bank Lofts consists of 113 units on 2.2 acres with 145 surface parking spots in the heart of South Carolina’s capital city. Built in 1923 with an addition in 1935, the asset originally known as the Federal Land Bank Building was completely renovated in 2016 utilizing historic tax credits. Built of reinforced concrete block with limestone details and marble columns, Land Bank Lofts is primed for value-add enhancements that
OFFERING SUMMARY Cap (T-12)
5.01%
Expense Ratio (T-12)
47%
Physical Occupancy (as of 11/01/21)
99%
DSCR Yr 1
1.50
DSCR avg.
1.64
Purchase Price Hold Period LP Equity
$17,450,000 7 years $5,752,732
LP IRR
15% - 18%
the premier downtown residences in Columbia.
LP AAR
19% - 25%
Land Bank Lofts has a desirable unit mix of studios, one bedroom, and
LP Equity Multiple
will allow for immediate rent growth and strengthen its position as one
two bedroom floorplans. Each unit features open floor plans with high ceilings, stainless steel appliances, quartz countertops, and a stackable washer and dryer in every unit. Common area amenities include a pool, business center, 24 hour secure entry, and on-site surface parking for every unit which is rare amongst the competitive set.
*projected
2.3x to 2.7x
PROPERTY BENEFITS
MASTERFULLY RESTORED BUILDING WITH PROVEN VALUE ADD POTENTIAL The Land Bank Lofts offer a comprehensive amenity package, coupled with high end unit layouts and finishes. Upscale Kitchens Stainless Steel appliances
Swimming Pool 24-hour secure entry & package acceptance
LOCATION, LOCATION, LOCATION! Located in the geographic center of the state at the confluence of three major interstates, the diverse Columbia economy is attracting an increasing number of manufacturing and distribution related companies. This past year Nephron Pharmaceutical announced a $300MM dollar expansion creating 380 new jobs. Mark Anthony Brewing, the maker of White Claw Seltzer and Mike’s Hard Lemonade, is building a $400MM production and distribution facility creating 300 new jobs. The Columbia MSA is comprised of six counties and is one of the fastest growing areas in the Southeast, with the population growing nearly 20% over the last 25 years. Columbia’s city center is located on the convergence of the Broad, Saluda, and Congaree Rivers which give the city much of its natural beauty and outdoor recreation like the Three Rivers Greenway, which includes 10 miles of lighted trails and boardwalks, an outdoor amphitheater, wayside exhibits, and restrooms. South Carolina’s capital city enjoys many local and state festivals, annual events, concerts, and college and semi-professional sporting events in its many world class settings. The Soda City market, inspired by traditional European street markets, is open every Saturday morning and just two blocks from Land Bank Lofts.
COLUMBIA’S STRENGTHS Columbia, SC has a bright future due to the diversified and stable economic drivers including State Government, University of South Carolina, the largest U.S. Army Basic Training Installation, Healthcare, Insurance Technology, and a growing manufacturing base.
ADJACENT TO LARGE MEDICAL COMPLEX AND EMPLOYERS Three major hospitals, including the Medical University of South Carolina, are located just minutes from downtown Columbia, providing a strong backbone for the healthcare industry. MUSC is also heavily involved in advanced research in health science across a broad spectrum of disciplines such as neuroscience, bioengineering, regenerative medicines, and cancer studies.
PREMIER RESIDENT BASE WITH HIGH INCOME The current residents at Land Bank Lofts are mostly young professionals with an average household income of $113K+ per year. They work in diverse sectors including healthcare, financial services, and education.
PROPERTY PROFILE
PROPERTY OVERVIEW
$17.45MM
843K
PURCHASING PRICE
COLUMBIA, SC POPULATION
113
1934 / 2016 YEAR BUILT
TOTAL UNITS
99% 2.22
ACRES LOT SIZE
OCCUPANCY RATE
$113K AVERAGE HOUSEHOLD INCOME
73,039 GROSS SQUARE FEET
PROPERTY OVERVIEW
COMMUNITY AMENITIES ● On-site, gated surface parking (145 spots) ● High End interior finishes ● High ceilings ● Quartz countertops ● Stainless steel appliances ● Pet friendly ● Juliet balconies ● Stackable washer/dryer ● Pool ● Business center ● 24-hour secure entry / package acceptance ● Bike racks
Studio
113
64
57%
601
26
12% 23%
926
23
23% 20%
392
646
13
BUSINESS PLAN
VALUE-ADD EXTERIOR ● Dog Park ● Dog Wash Station ● Plumbing retrofit ● Renovate pool house ● Amazon lockers / package system INTERIOR ● Smart Home Features and Upgrades, including Smart Locks, and Smart Thermostats to all units ● Add storage space ● Elevator repair / replacement
PROJECTED TIMELINE AND COST DURATION OF RENOVATION
3 MONTHS
AVG COST PER UNIT
$6,188
AVG VALUE ADD RENTAL PREMIUM
$100
TOTAL VALUE ADD COST: (Exterior + Interior)
$699,200.00
SMART-APARTMENT TECH PACKAGE INTEGRATIONS Land Bank Lofts will introduce “smart” appliances and features throughout the property, giving this historic building a modern touch. Additions will include keyless entry, brand new touchscreen thermostats, and a smart water valve which can detect leaks and even be set to Auto Shutoff in the unlikely event of a pipe burst.
Color Cellular Hub
Yale Touchscreen Smart Deadbolt Lock
Color Smart Thermostat
Smart Water Valve + Flow Meter
SPACIOUS COWORKING AREA FOR RESIDENTS TO RESERVE Land Bank Lofts will introduce on-site coworking space available for residents to rent. These spaces will allow them to collaborate in groups or work solo; with brand new technology, furniture, and more.
PRIMARY BUSINESS PLAN
SECONDARY BUSINESS PLAN
❖ Exit Year 7
❖ Refinance Year 7
❖ AAR 19% - 25%
❖ Return 100% of Capital
❖ 2.3x - 2.7x equity multiple
❖ AAR Year 7 = 14%
Hold long term for infinite returns
EXIT STRATEGY
CAPITAL STACK
PARTNERSHIP STRUCTURE LP Preferred Return Hurdle
30% Ownership
7%
GP
Equity Split After LP Hurdle LP (Equity)
70%
Managers (Equity)
30%
LP
70% Ownership
Equity Split After 2nd LP Hurdle (22% AAR*) LP (Equity)
60%
Managers (Equity)
40%
DEBT *calculated at exit
TARGET RETURN SUMMARY
LIMITED PARTNER
AAR
IRR
EQUITY MULTIPLE
19%
15.1%
2.3X
AVG CoC* 7.6%
RENT COMPS LAND BANK LOFTS
MARKET ANALYSIS
PRIME LOCATION IN SOUTHEASTERN UNITED STATES
160 MILES 1.5 HOURS TO CHARLOTTE 100 MILES
90TO MILES INDIANAPOLIS
TO CHICAGO 3 HOURS TO ATLANTA 215 MILES
100 MILES TO TOLEDO
2 HOURS TO CHARLESTON 120 MILES
Awards and Accolades
COLUMBIA BY THE NUMBERS
•
Next Great Neighborhood: Columbia’s Main Street, Southern Living Magazine
•
Top 30 Best Small Cities in the U.S. – National Geographic Traveler, 2018
•
Top 29 Most Surprising Cities to Visit – National Geographic Traveler, 2018
•
#2 “Among Best Cities for Millennials”, smartasset.com 2018
•
Top 20 “Best Places to Live – Mid Size Cities” U.S. News and World Report, 2017
•
“One of America’s Best Cities for Millennials”, niche.com 2017
•
#18 ”Friendliest City for Small Business”, Thumbtack.com 2017
•
Top 30, “Best Mid-Size City for Education”, Forbes 2017
•
Ranked #2 “Most Affordable City to Start a Business”, smartasset.com, 2016
•
Top 20 “Best Places to Retire”, CNN Money 2016
•
Top 20 “Best Place to Live and Work”, Employment Review, 2016
COLUMBIA'S STRONG ECONOMY
BY THE NUMBERS
MSA POPULATION 2021: 843,000 2011: 776,195
POPULATION GROWTH
Year over Year Rent Growth
8.6% (2011-2021)
10.23%
THE STRENGTH OF COLUMBIA The downtown area of Columbia is the business,
• Great Location in Columbia’s Business and Entertainment District
entertainment, and cultural center of central South
• Short Walk to Restaurants and Entertainment Venues
Carolina. As one of the most populated cities in the State,
• Four Minute Bike Ride to the University of South Carolina
Columbia offers a unique fusion of work, entertainment,
• Four Minute Drive to Grocery Store Including Publix and Food Lion
education, and recreation that attracts residents to
• Across the Street from One of the Areas Largest Employers – Prisma
downtown living. A recent UN population study ranked Columbia seventh overall in projected population growth among U.S. cities of 500,000 inhabitants or more, with a 43% increase by 2030. Land Bank Lofts offers an investor an exceptional long term real estate investment with upside through a common area improvement plan. By aesthetically improving on the competitive strengths of the property like the gated on-site surface parking, the pool area and other common areas, Land Bank Lofts will thrive from the growth and migration to South Carolina’s capital city.
Health Baptist Hospital
COLUMBIA’S BUSINESS AND ENTERTAINMENT DISTRICT
The Arcade Building was Columbia’s first indoor shopping center. Located in the heart of downtown and just steps away from Land Bank, it features an array of local art studios, shops, hair salons, offices, and more.
From custom & tailored clothing stores and fine jewelry boutiques to personalized gift shops and an old country store, the Main Street District offers a wide array of shopping options. This eclectic district is filled with fascinating people and places, providing a uniquely downtown Columbia experience.
THE BULLSTREET DISTRICT $1.3 BILLION development project just blocks away from Land Bank
PRESTIGIOUS UNIVERSITIES
The University of South Carolina has $3.7 billion economic impact on the Columbia metropolitan area and supports 1 in every 9 jobs in the Midlands community. The university’s focus on retaining skilled graduates in competitive fields, coupled with its efforts to attract private research partners to the region has the potential to dramatically boost economic growth throughout the next decade.
PROXIMITY TO PREMIER INSURANCE & TECHNOLOGY COMPANIES Columbia is one of the top hubs in the U.S. for Insurance Technology. More than 15,000 people are employed in insurance technology in Columbia. Companies including Aflac, Colonial Life, Interactive Intelligence, Accenture, EagleEye Analytics, Seibels, and Blue Cross and Blue Shield. Blue Cross is adding 702 full-time jobs in the next five years and will invest $60MM in the Columbia area.
FINANCIAL ANALYSIS
OFFERING SUMMARY Cap (T-12)
5.01%
Expense Ratio (T-12)
47%
Physical Occupancy (as of 11/01/21)
99%
DSCR Yr 1 DSCR avg. Purchase Price Hold Period LP Equity
1.5 1.64 $17,450,000 7 years $5,752,732
LP IRR
15% - 18%
LP AAR
19% - 25%
LP Equity Multiple
FINANCIAL OVERVIEW *projected
2.3x to 2.7x
DEBT FINANCING / LOAN ASSUMPTION Loan Principal Balance Loan to Value Interest Rate (Fixed) Interest Only Payments (Months) Term (Years)
$13,575,000
Down payment:
$3,875,000
Closing Cost:
$393,282
Acquisition Fees:
$523,500
Value Add Cost:
$699,200
Operating Reserves:
$261,750
Total Raise amount:
$5,752,732
78% 4.34% 6 10
Fixed or Adjustable
Fixed
Amortizing Period (Years)
30yrs
Prepayment Penalty
USE OF FUNDS
Expires 2028
PROFORMA
SENSITIVITY ANALYSIS
Sensitivity Analysis
Cap Rate on Exit
Return on Disposition
IRR
Equity Multiple
Avg Ann. Return
4.75%
$292,351
19.0%
2.9X
27.48%
5.0%
$274,893
17.92%
2.7X
24.98%
5.25%
$259,097
16.89%
2.5X
22.73%
5.5%
$244,738
15.89%
2.4X
20.68%
5.7%
$234,197
15.12%
2.3X
19.1%
6.0%
$219,609
14.01%
2.2X
17.09%
6.25%
$208,552
13.11%
2.0X
13.11%
$100,000 investment
Limited Investor
*projected
INVESTOR RETURNS BASED ON $100,000 INVESTMENT INVESTMENT Investor Annual Percent Return Total ReturnLimited Partner
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 6
YEAR 7
($100,000) $6,796
$6,626
$7,570
$7,730
$8,063
$8,193
$8,535
Limited PartnerReturn on Sale
$80,644
Total Returns + Returns of Initial Investment
$234,157
RETURN SUMMARY IRR LIMITED PARTNER
15.1
EQUITY MULTIPLE 2.3X
AVG CoC* 7.6%
HISTORIC TAX CREDIT
Taxes on the Property fixed until
2034!
TAX DISCLAIMER Please check with your tax and legal professional as Sponsors do not provide tax or legal advice and the above is not intended to or should be construed as such advice. Your specific circumstances may, and likely will, vary.
Appendix
MANAGEMENT TEAM
SPONSORSHIP/ MANAGEMENT TEAM With over $107 Million Dollars of assets under management, XSITE Capital is on a mission to help you grow your mind and your wealth.
DR. JULIUS ONI
LESLIE AWASOM
CEO, Co-Founder (Investor Relations)
Co-Founder & Director of Operations
TENNY TOLOFARI
BRADEN HEYD
Led by Top Orthopedic Surgeon, and experienced Angel/Real Estate Investor, Dr. Julius Oni, XSITE Capital is known for its dynamically powerful team, ability to close deals, and their value-add to not just properties, but investors, too.
Co-Founder & Director of Acquisitions
Executive Assistant
STRATEGIC PARTNERS
•
• •
CHRIS LENTO
BRAD CANGIAMILA
Founder & Managing Member, EM Capital LLC
Founder & CEO, Boston Common Holdings
18 years of experience in multifamily ownership, management and investing Owns and operates >160 multifamily units in MA, FL, GA, KY Board Member: Bay Cove
•
•
CEO of Boston-based private equity and development company $132M real estate transactions completed in last 5 years.
FIRST COMMUNITIES MANAGEMENT PROPERTY MANAGER
First communities management has managed over 200,000 units and 1000 apartment communities throughout the country. It’s diverse client family includes national banks, insurance and pension funds, syndicators, individual investors, HUD, FDIC, Freddie Mac, and Fannie Mae. The current market value of the company's managed assets exceeds $1 billion and they are widely recognized as a market leader in the property management of Class A, B, C and tax credit communities. FCM’s vast experience and unwavering dedication to each client’s assets provides a strong foundation for improving a multi-family properties bottom line. At FCM, they believe in developing long-term relationships with their clients through honest on-on-one communication and trust.
PORTFOLIO
INVESTMENT PORTFOLIO:
Elevate on Main | South Bend MSA The Griffin at Petworth | Washington DC The Vue at St. Andrews | Columbia, SC
TOTAL ASSETS UNDER MANAGEMENT
$107MM THE GRIFFIN
THE VUE
ELEVATE ON MAIN
If you’d like more information, have questions, or are ready to make an investment, please contact:
INVESTOR RELATIONS: JULIUS ONI • JULIUSONI@XSITECAPITAL.COM cc: BRADEN HEYD • BHEYD@XSITECAPITAL.COM
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