Lexington Investors LLC
Raised to Date:
$1,400,000
ID:
MN-SCOR-LEX
Exemption:
SCOR
Accredited Only:
No
Reviewed Financials:
No
Target Goal:
$1,400,000
Minimum Goal:
$1,000,000
Minimum Investment:
$25,000
Suggested Investment:
$50,000
Additional Investments:
$5,000
Maximum Goal:
$1,400,000
Raise Start Date:
Saturday, July 14, 2018
Raise End Date:
Thursday, August 16, 2018
Raise Target Date:
Wednesday, August 1, 2018
Business Plan:
Compiled PPM:
Subscription Agreement:
Executive Summary
The investment is a 120 unit apartment building in Lexington, KY.
The asset is currently 76% occupied and will undergo a mid-level renovation in order to maximize investor returns.
- Purchase Price: $4,175,000
- Renovation Budget: $724,955
- Debt Service Coverage year 2: 1.84
- Loan Amount: $3,850,000
Future Loan: Freddie Mac SBL (proposed)
- Target Amortization: 30 years
- Target interest Rate: 6% or less
- 1 year Interest only
Key Financials based on a 5 year hold:
- Total Raise: $1,400,000
- Gross Revenue: $940,743
- Expenses: $452,019
- Net Operating Income: $455,724
- Investor Cash flow average: $32,592/quarter
- Investor average cash on cash: 9.31%
- Investor total profit upon sale: $1,353,758
- Investor ROI: 19.3% Investor IRR: 16.4%
Key Highlights
- Purchase and renovate non-renovated units to achieve maximum rents and occupancy.
- Hold property for 5-7 years
- Neighboring properties have appraised up to $57,600/unit, we are purchasing at $40,833/unit after renovation.
- Ashland apartments an 84 unit community owned by Venture D Properties (Todd Dexheimer, CEO) and partners, will allow for strategic collaboration and efficiencies.
Ownership Structure: Lexington Investors, LLC
General Partner: Lexington Capital, LLC maintains a 30% ownership with a 2% asset management fee on the gross revenue and a 2% acquisition fee
Limited Partners:
- shall maintain 70% ownership
- 8% preferred return
- 70/30 split after the preferred is paid
- 7% year 1 preferred return
- Payments made quarterly