Mountain View Village

Class B+ Asset

 

 

 

 

 

 

Offering Details

Property Type
Multifamily

Target Raise
$5,985,608

Investment Type
Equity

Projected IRR at Ten Years Holding
19.03%

Equity Multiple
4.26x

Investment Summary

This offering presents investors an opportunity to invest in 180-unit multifamily apartment buildings in Rapid City, SD. The opportunity consists of assuming the existing HUD loan and then obtaining a refinance (A7) at month four of acquiring the property to save more than $150,000/year by reducing rates. The set plan is to hold for 10 years, or a sale at year 5 with the prepayment penalty being at 3%.

The property’s superior infrastructure gives Tzadik the ability to focus on amenities. One of the amenities that will be added are package lockers in the front office. In the spirit of providing a safe environment during the time of COVID-19, these lockers give residents the ability to get their package in a swift manner without much interaction. Beyond packages, the outside mailbox area will be given a covering for residents to be able to get their mail without being affected by rain, or snow. Other exterior amenities planned on being added will be a track to the perimeter of the property, and a BBQ area.

Tzadik Management is an experienced real estate investor that currently manages 7500+ units nationwide with a core focus on multifamily investments.  Tzadik Management specializes in direct investments in middle market multifamily real estate and has operational experience in this market.

Portfolio Summary

  • B-class neighborhood that sits on the border of Rapid City and Box Elder. Close to most major employers including the Ellsworth Airforce base. This is a developer owned property being sold for the first time. The property currently lacks a decent landscaping plan, package lockers, hang out areas for the young adults who live here which will be included in our cap ex plan.

Market Summary

WHAT MAKES RAPID CITY SO SPECIAL?

Diverse and robust employment. More than two million people visit annually, making Rapid (as locals call it) their home base for explorations to Mount Rushmore, Deadwood, Custer State Park, the Badlands, and more. Rapid City’s robust local economy and abundant natural resources have proven attractive to a diverse group of industries. Taking advantage of renewable energy resources, Midwestern utility and energy giant Black Hills Corporation chose Rapid City as its headquarters… South Dakota has no corporate or personal income tax, and when the Tax Foundation last measured overall state and local tax burdens in 2012, South Dakota’s ranked second-lowest, just behind Alaska.

Rapid City never had any eviction moratoriums and thus has continued to collect well. We currently collected on our existing 244 units 99% of collection in April and May.

South Dakota’s workforce is solid too. College graduates make up a larger share of the adult population than nationwide. The state ranks near the top in the percentage of adults with high school diplomas and associate degrees, as well as in literacy rate. Also, it has among the highest labor-force participation rates and lowest unemployment rates in the country; especially during previous recessions. During the last 08/09 recession while unemployment went to 14% nationwide Rapid City never went above 5%.*

*Rapid City Currently has 3.5% unemployment for April 2020.

https://dlr.sd.gov/localoffices/rapidcity/default.aspx

 

Offering Documents

Portfolio Location

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Sponsor Info

Adam Hendry

CEO

PORTFOLIO:

  • 7,500+ units Owned and Managed in Florida, Georgia, Texas, South Dakota, North Dakota, Oklahoma and Nebraska
  • Managing Member of all Entities
  • 215 Employees
  • Industry leading Employee Retention

MICHAEL DAVALOS

Executive Vice President

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