We are Acquiring and developing a diversified portfolio of multi-family properties. The first block is a 5-asset, 679-unit, garden-style portfolio across GA, FL, AR, and KS. This portfolio was sourced directly from the lender at note value.

The first portfolio acquisition is a result of existing owners being unable to service escalating debt service costs. This portfolio was sourced directly from the lender due to strength of our robust management platform coupled with our long-standing and successful relationship. We have negotiated a fixed 7% interest rate (significantly lower than paid by existing owners) and no prepayment penalty to further mitigate the downside risk.

The latter - no prepayment penalty - is critical as it can allow the Sponsors to capitalize on improving market conditions while retaining the flexibility to target refinance into a permanent debt structure. The portfolio has been stress-tested to work in the current climate of higher interest rates and negative economic sentiment. Selling into a positive sentiment market in a few years can be highly accretive. The potential for a quicker refinance is not underwritten into the base case to maintain conservatism.

There is ample upside opportunity as the assets are being acquired for debt value and portfolio-wide the assets are underperforming relative to other Boardwalk assets of a similar vintage and demographic makeup. As a bonus, the investors are projected to receive 1:1 depreciation to investment ratio to further bolster their overall returns. The depreciation benefits are not underwritten in the base case in order to maintain conservatism.

The Fund offers the double benefits of equity growth and tax benefits, de-risked by acquiring assets at a significant discount to appraised values. This is THE distressed opportunity that savvy multifamily investors have been waiting for.