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The Crest on Colorado
A unique 98 unit Built-to-Rent investment opportunity in Lafayette, Louisiana
Property Details
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98 Unit Built-to-Rent development
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Southeast projected growth of 1.8 million renters
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Near highly desirable Ridge Elementary School – Rating 8 out of 10 (Zillow)
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Close to major retailers - Whole Foods, Costco, Walmart, Target, Starbucks. Proximity to Acadiana Mall
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10 Miles from Lafayette, LA via I-10
The Story Behind the Opportunity
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Looking at BTR projects in Southeast (Southeast projected growth of 1.8 million renters)
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Noticed bigger developers (DSLD and DR Horton) and institutional investors were going into secondary and tertiary markets
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Our developer partners, Derek Alexandrenko and Chris Ventre of Hammerhead Capital, have strong community ties in the area
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Met with city officials and they loved our idea for a BTR development
Our Experience
In this market, you need to rely on an experienced team of commercial real estate syndicators. Clive Capital and its partners have been working to syndicate build-to-rent and multifamily investment opportunities since the early 2000s and through the 2008 recession, leading to a combined 60+ years in experience. Click here for more information.
$1.2B+
3000+
$400M+
60+
ASSETS UNDER
MANAGEMENT
UNITS
EQUITY RAISED
YEARS OF EXPERIENCE
Have a question for our team? Schedule a call now to ask us anything.
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Videos
The Crest BTR in Lafeyette, LA
The Crest BTR in Lafeyette, LA
The Crest - Intro
Why BTR?
The Crest - Investment
Investment Thesis
IRR: 17.5%
Riskiest portion of development is complete and underwritten rents have been achieved
Hold Period: 4 years
Yield on Cost: 7.8%
Equity Multiple: 1.86x
Vertical Buildout Contingency Reserve: 13%
Conservative build out rate - 6 homes per month to complete construction by
May 2024
Rate Cap: 9.75%
Bonus Depreciation
Exit Rate Cap: 80 bps above current market cap rate
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 Crest, feel free to register your soft commit. Or visit our Learn More page, view our blogs, or sign up for our weekly newsletter.
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 5 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 5 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.
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