The project is expected to generate an annualized return of roughly 15.1%, net IRR by CalTier Fund I LP partners.
Disclaimer: The realized return on an individual project may vary significantly from your portfolio-level return as a CalTier investor.
The CalTier Fund investment in the 194 unit, 1,156 bed student housing complex at Brigham Young University officially closed late March 2021. The property was sourced off-market through a proprietary relationship with the owner. This property, located adjacent to the 36,000+ student campus, provides students with great amenities and a positive living environment.
With extensive renovations, CalTier's partners will raise rents to bring them in line with the market. Our JV partner Redstone Residential manages over 6,000 beds in the BYU market and has extensive experience in student housing throughout the United States.
The property management team has now transitioned the onsite employees onto Redstone's systems, and are gearing up to complete the renovations this summer. We will continue to be in touch with updates! We expect the fund to receive the first distributions from this property in July 2021.
CalTier FAQ: How does this addition impact your portfolio?
This investment was structured as equity, i.e. the fund has ownership interest in the property and entitled to a share of rental income and any profits from the sale that may occur when the time is right.
Since the closing, the rental income received will be contributed to quarterly distributions. The future increased value of the property will be captured in quarters’ adjustments to the CalTier Realty Fund I LP’s net asset value (NAV) per share. As always, if you have any questions or feedback, please reach out to us at investors@CalTierRealty.com.