Jacksonville, FL, October 08, 2017 --(PR.com
)-- Initially investors were set to receive a 10% annual yield in profits from the Camden Crossing townhome community in north Jacksonville. It’s a typical return, but New Leaf Communities, the real estate firm developing the multifamily units, is so confident in their project they’ve upped the ante considerably, making this opportunity quite difficult to pass up.
New Leaf Communities is seeking $4,500,000 in Preferred Equity. The sponsor is offering a 10% preferred return with 8% as a current pay and 2% accrued. RealtyeVest, who is exclusively housing the offer on their crowdfunding platform, will raise the capital in a series of Class A, B and C stocks of $1.5 million each.
It’s first come first serve as the tranches will close once the total for each is raised. Participants in the Class A tranche will receive an 80/20 waterfall participation after the 10% preferred return. The Class B tranche will receive a 70/30 waterfall participation after a 10% preferred return. Lastly, the Class C tranche will receive a 60/40 waterfall participation after a 10% preferred return.
The return parameters were changed because New Leaf Communities wanted investors to have a chance to profit from a flourishing market in Northeast Florida. Recently approved by the Jacksonville City Council, Camden Crossing is set to fulfill a dire need in the growing area that is New Berlin road. The area just recently saw the opening of the Amazon fulfillment center which brought 1500 jobs to the First Coast.
The units are being constructed with special concrete technology called SCIP that as of late, will be the first of its kind used in the construction of residential multifamily homes in Northeast Florida. The structural concrete insulated panels are supposed to drive energy costs down for every unit. Using this innovative framework, which according to Gulf Concrete Technology boasts lightness and quick instillation, soundproof capabilities, and is hurricane, fire, and earthquake resistant. Tenants can expect electric expenses to be less than $100.00.
Construction is slated to begin March 2018. The first renters are expected to occupy the first completed building by July 2018. All buildings are expected to be completed and occupied by December 2018.
The townhomes are being developed by Lee Arsenault, owner of New Leaf Communities. Lee Arsenault is also the current serving President of the Northeast Florida Home Builders Association. Arsenault, along with partner, John Latshaw, Jr., a Ponte Vedra, Florida Tax Attorney, developer, and development consultant specializing in small multifamily projects, formed New Leaf Communities when market trends indicated more and more people were choosing to delay house purchasing or downsizing, and instead opting to rent.
In a promotional YouTube video Arsenault says, “We decided to embark on a search for infill locations where we can build small-scale apartment complexes. Camden crossing is the result of this search, and will be the launch of this venture with funding’s sourced by people like you who want to earn an above market rate return.”
The 3-bedroom, two and-a-half-bath townhomes of Camden Crossing each have a one-car garage, and each unit is 1497 square feet. The monthly rental costs for each unit is $1495 and will be located less than 2 miles from the bustling River City Marketplace and Jacksonville International Airport (JIA).
Investors should note, this preferred equity investment has a 5-year term, with deal level returns as follows: 19% IRR and an equity multiple of 1.60x. Interest checks will be sent monthly. 8% of the 10% preferred return will be a current payout, 2% will accrue annually.
New Leaf Communities will close on long-term financing at the end of the second year and will repay the investors capital. Cash flow distributions and sales proceeds will continue until the end of the 5-year term.
Visit RealtyeVest for more information about the Camden Crossing townhome community.