Portofino Club
230 Units | 1986 Construction | A+ Location | Jacksonville, FL
8%
Preferred Return
17.6%
IRR
2.12x
Equity Multiple
22.5%
Annualized Return
EXECUTIVE SUMMARY
B-class asset in outstanding location primed for growth in the medium term
$50,000
Minimum LP Investment
5 Years
Target Hold Period
25th June 2024
Funding Deadline
1st July 2024
Target Close
Attractive basis, being purchased off-market, $8.5M below original broker guidance and 23% below recent comps
Assumable debt – 49% LTV, 4.99% interest rate
Job growth outpacing the country historically (2.85% versus 1.35%) and projected 2024 – 2028 (0.65% versus 0.39%)
Limited supply going forward – only 265 units to be delivered in next 8 quarters (Townhome product, not directly comparable)
Median Income in census-tract is $82.2k. Average HH income in zip code is $111.2k
Watch the Investment Webinar Recording
JACkSONVILLE HIGHLIGHTS
Population Growth
$1.713M1 (23%1 population growth since 2013, Estimated 10% growth to 20342 )
Increase in Real GDP
From 2017 to 2022, Jacksonville has seen a 23.8% increase in real GDP compared to the national real GDP growth of 12.0%
Employment Growth
From 2020 to 2021, employment in Jacksonville grew at a rate of 3.86%, outpacing the national average of 1.09%, and Jacksonville is expected to continue to outpace the national average in 2024.
Increase in Household Income
2024 Median Household Income: $83K (+38% increase in last 5 years)
VALUE-ADD OPPORTUNITY
Following value-add opportunities that will increase rents and Net Operating Income.
Interior Improvements
The upgrades to the kitchen and floors will provide the most visual impact and return on investment:
Interior renovations include upgrading 175 units to the signature level. Renovations will feature stainless steel appliances, quartz countertops, new cabinet fronts, fresh paint, vinyl flooring, and subway tile backsplashes.
Renovations will be phased over three years, targeting an average rental increase of $292 per unit.
Additionally, the Property can generate ancillary income through the introduction of reserved, covered parking, and washer/dryer fee.
Exterior Improvements
The upgrades to the kitchen and floors will provide the most visual impact and return on investment:
The immediate exterior improvement plan includes adding fresh mulch, completing concrete repairs, and installing new dumpster enclosures.
Major exterior projects include clubhouse renovations and fitness center upgrades. Clubhouse upgrades will re-energize communal spaces and generate appeal to prospective active lifestyle residents.
30 carport structures in need of repair. Improvements encompass fixing the damaged metal and painting the structures. HVAC & water heater replacements also are included on an as-needed basis.
Post Acquisition Expectations
Financial Reports
You will receive monthly updates informing you about operational and financial performance of the property
Distributions
You will receive monthly distributions, beginning after one quarter after takeover (Accrues from Day 1).
Communication
We will clearly and quickly communicate status including any challenges
NEXT STEPS
Disclaimer: This is not a general solicitation. Please do not forward the email you receive with investor document instructions.
1. Complete
Review and complete Investment Packet containing the Offering Documents
2. Sponsor Review
Sponsors review and accept Investment Packet
3. Wire Fund
Deadline for wiring funds is: Tuesday 25th June 2024
4. Close Purchase
Disclaimer: This is not a general solicitation. Please do not forward the email you receive with investor document instructions.
SPONSORSHIP TEAM
Harry Nima Zegarra, MD
Nima Equity
Harry is a full-time pulmonary and critical care physician and has over 6 year of experience in residential and commercial Real Estate. Owns and manages a 11 SFH and small multifamily portfolio in DFW. He is involved in Acquisitions, Sourcing Capital & Asset Management in multifamily syndications. Nima Equity was founded at the beginning of 2021 and to date is co-sponsor in over 1100 apartment complex units in MO, GA, TX, AZ and FL with over $ 90 million of assets under management. Nima Equity focuses also on financial and real estate education for physicians and runs a YouTube Channel of the same name.
Ryan Webster
Equity Yield Group
Ryan is a NHBA award winning home builder, experienced real estate professional, and entrepreneur. Ryan is the founder of Equity Yield. Ryan has over a decade of experience owning and operating a Midwest based construction, and development company, with a wide range of experience managing projects from groundup development, value add renovations, new property lease up, and building master planned communities.
Warren Dresner
Equity Yield Group
Warren has 24 years’ experience in finance, insurance and real estate in the USA, UK and Australia, with a focus on deal management, deal execution and project management. He began investing in real estate in 2010 and has experience in both Single-Family Homes and Multifamily Apartments. He is a Managing Partner of Equity Yield, LLC and has invested as a GP and LP in over 4,000 units.
ABOUT NIMA EQUITY
Nima Equity currently holds $90M+ in assets under management and is co sponsor in over 110 apartment units in MO, GA, TX, AZ, FL and SD.
Nima Equity is a real estate investment firm founded by doctors for doctors; with an investment thesis of finding value add properties across business friendly states and partnering with full time experienced real estate operators.
We aim to have a longstanding relationship with our investors and friends; and proud ourselves of our transparency and fluid communication.
ABOUT Equity Yield Group
Equity Yield Group currently holds $200M+ in assets under management and has helped over 300 investors to reach their investment goals.
We are a real estate investment firm specializing in institutional grade multifamily assets, in great markets, sourced, qualified, and managed by an experienced team.
We strive to deliver a superior investor experience with transparent and consistent monthly investor reporting, access to our responsive investor relations team, as well as our diligent acquisitions and asset management team.
IMPORTANT FAQS
What is the minimum investment required for an LP in the Portofino Club project?
The minimum LP investment is $50,000
What are the key return metrics for the Portofino Club investment?
The preferred return is 8%, the equity multiple is 2.12x, the annualized return is 22.5%, and the internal rate of return (IRR) is 17.6%.
What is the target hold period for the Portofino Club investment?
The target hold period is 5 years
What are the projected tax benefits for investors in the Portofino Club?
The estimated depreciation per $100,000 investment is $40,000 in the first year and $75,000 over the life of the deal
When is the funding deadline and the target close date for the Portofino Club investment?
The funding deadline is June 25, 2024, and the target close date is July 1, 2024