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Investment Highlights
The financial returns from investing in The Charleston will differ depending on when you invest your dollars, with each phase providing a projected return on investment. Click here to view the investor returns by phase.
The Story Behind the Opportunity
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Looking at BTR projects in Southeast
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DR Horton recently developed BTR project in Foley one of the markets on our radar
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Doubled down on Foley, we already had a relationship with the seller
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Met with city officials and they loved our idea for a BTR development
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Building moratorium in place that will limit further supply from being added to the market
Facts about
Foley, AL
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Baldwin County (where Foley, AL is located) has been the fastest growing county in AL since 2010 (source: U.S. Census Bureau)
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52% growth in total assessed property values from 2012-2020
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69% of all assessed property value in Baldwin County is located within municipal limits
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55.2% of all assessed property value within municipal limits is located in Gulf Shores and Orange Beach.
Unit Mix
How to Invest
No matter where you are in your investment path, we’re here to help. If you're ready to find out more information about The Charleston, feel free to register your soft commit. Or visit our Learn More page, view our blogs, or sign up for our weekly newsletter.
Proposed Capital Stack
The proposed capital stack requires minimum equity contribution from limited partners.
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6% senior debt up to 65% LTC
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15% mezzanine debt up to 85% LTC
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16-18% preferred equity up to 95% LTC
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Preferred equity to collateralized
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5% GP equity contribution up to 100% LTC
Returns-on-Investment
The financial returns from investing in The Charleston will differ depending on when you invest your dollars, with each phase providing a projected return on investment.
Next Steps
The Charleston project is currently open to limited equity investment participation until the capital needs are met. Contact us to find out more information.
FAQs
Here are the most common questions we receive around this opportunity. Don't see your question? Just send us a question below or schedule some time to chat.
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Question: Can I sell at any point or do I have to stay in this investment opportunity for 10 years? Answer: We have been able to provide early exits for our LPs in the past without any problem but we provide no guarantees. We recommend that when making your decision, you assume you will hold for the 10 year period.
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Question: How will you handle a dynamic environment where interest rates and labor / material pricing is always fluctuating? Answer: Fluctuating Interest rates are definitely something we’re keeping in mind and rate caps are a potential solution to the problem. We also make sure to have enough in interest reserves to handle increasing rates and plan on converting our floating rate construction loan to fixed rate agency debt upon stabilization. But the best solution for this is our relationship with our lenders and our ability to work with them to come to a solution that works for everyone. We don’t want to foreclose on the property and the bank does not want the headache of managing an unfinished development so I know that we will work together on a solution that benefits all. For labor and material pricing, we have a 15% $3M vertical construction contingency and we buy our materials and labor in bulk for better pricing.
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Question: Will there be refinances along the way? Answer: We do plan on refinancing out of the bridge debt for the horizontal infrastructure and may refinance additional investor capital out of the opportunity once we have stabilized the development. This way we return investor capital tax free before we hold until the 10 year period. We did not include refinances in our underwriting projections and do not recommend you take refinances into account when making your decision. Any decisions we make we will keep our passive investors’ best interests at heart.
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Question: Have you decided on an exit strategy? Answer: Our exit strategy is to hold the investment for 5 years. At this point we will either sell or in order to establish a Legacy as is our mission, buy out existing investors who no longer wish to hold to see the profitable cash flow and instead want a capital event, and hold for a longer period of time.
Still have questions?
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