The project is expected to generate an annualized return of roughly 20%, 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 352 unit apartment home community in Glendale, AZ officially closed early March 2021. This property is being rented as an apartment home community nestled in the heart of Maricopa County. Rose Lane Park, fantastic local eateries, and abundant shopping venues are all just minutes away.
During the first half of 2021, Caltier's and its partners focus continues to be adding value through active management of the rent roll. The on-site management team at Solano Vista has been proactive in effectively communicating to the tenants community policies, including timely rent payments which has been very effective. During the past few months the team has successfully renovated 22 units. The team has also begun exterior renovations of the courtyards and front of the property to enhance the curb appeal and tenant experience.
Although the cash position in Solano Vista is growing, the plan is to conserve cash for the time being in order to maintain adequate reserves and continue property improvements.
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.