New 156 Multi-Family Unit Value-Add Project
(1,000+ units and growing!)
We delighted to announce the CalTier Fund has made a new investment with Lionel Partners. This is an incredibly exciting partnership and demonstrates CalTier's strength in providing our investors with a diverse portfolio of cash-flowing assets.
About The Vue
The Vue is a 156 unit multi-family property nestled just NNE from the center of Austin, Texas. It was built in 1999 and has a unit mix of 70% 2bd & 3bd floor plans.
The Vue is located minutes from major retail destinations such as The Domain mixed-use development and multiple employment campuses such as Tesla, Samsung, Oracle, Dell, Apple, and the University of Texas.
Rents are currently under market rate which provides for a great opportunity to take advantage of previous inefficiencies and lift rent by $75/unit to bring them to market rate. After renovations are complete, it is anticipated the rents can increase by an additional $176.
Currently, the 3 bedroom floor plans at the Vue are renting for $1373 while others in the area are currently renting for $2500-$2800, which is why the projected rent premiums are conservative and could potentially be pushed much higher.
On a 4 year hold, the Vue has a projected 21% IRR and a 2.1x equity multiple.
About Lionel Partners
Lionel Partners acquires or develops multi-family and hotel properties around the United States, often providing value-add improvements, operational efficiencies, or repurposing of the asset to create the highest possible value for its respective community and shareholders. Lionel Partners have 25+ years of combined real estate investment experience across 5,000+ units purchased, 22,000+ units managed, 3,000+ units renovated, and 150 hotels underwritten.
As we all know, a common phrase in real estate is 'location, location, location'! Austin is the fastest-growing major metro area, ranks #1 best place to live in the US, ranks #3 best metro for STEM jobs, has a 4% average annual job growth, and has had a 30% population growth since 2010.
The Business Plan
4 - 10 year hold
Increase rents by $251 per unit!
Renovate interiors and exteriors
Faux stainless steel appliances, resurfaced counters, new cabinet fronts, hardware, lighting, flooring, washer dryers, and 40ft yards.
Paint outside, replace the parking lot, add covered parking, new fencing, signage, roof and update all clubhouse and amenities.
With a new and experienced property management team and the upgrades completed the asset can be brought up to market rent demand quickly. We are extremely excited to work with Lionel Partners on this project and look forward to working with them again soon. This will bring our total units in the fund to over 1,000 units with a 65% growth for units in the fund since March 2021!
21% IRR (4-year hold)
2.1x equity multiple (4 yr hold), 3.2x equity multiple (10 yr hold)
Located across the street from Pickle Elementary School
Close proximity to major employers like Tesla, Samsung, Apple, Dell, Oracle, GM, and University of Texas
15 minutes to downtown Austin and 10 minutes to airport
Close to Colorado River, Lake Travis, Lake Austin, and Lady Bird Lake
5 miles from The Domain, a popular high-density office, retail, and residential center