MID-MARKET INVESTMENT FOCUS
Target Deal Size is $1M to $25M | Investment Time Frame Range is 3 to 10 Years
MID-MARKET STRATEGIC ADVANTAGES
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- Increased Deal Flow: More properties available for consideration
- Opportunity: Capital requirements exclude most individual investors
FOCUSING ON DEALS WHERE WE ADD VALUE
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- Inefficiencies in Mid-Market
- Market Dynamics: Inefficiencies and mispriced assets
- Opportunity: Purchase undervalued properties in major markets
BENEFITS FOR INVESTORS
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- Vertical Integration: Benefit from our in-house control
- Diversification: Access to larger assets not attainable individually
VERTICAL INTEGRATION ADVANTAGES
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- In-House Control
- Essential Processes: Brokerage, property management, and general contracting
- Operational Efficiencies: Add value to mismanaged properties
4 WAYS TO INVEST WITH SOUTHWEST URBAN
(1) RESIDENTIAL VALUE-ADD FLIP FUND
Acquires dated upscale single-family homes in the high-growth markets of Phoenix and Tucson. The homes are immediately improved and sold. We have 10 years experience and a proven track record in this market.
INVESTMENT FOCUS
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- Investment in moderately distressed upscale homes for improving and selling
- High-growth markets of Phoenix & Tucson
INVESTMENT STRATEGY & VALUE PROPOSITION
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- Value Creation: Addresses need for newly updated upscale housing
- High-Quality Renovations: Transact quicker and have greater profit margins
- In-House General Contracting (Design) and Brokerage: Integrated planning and execution
INVESTMENT HIGHLIGHTS
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- 10 years’ experience in this market
- Acquisitions Strategy: On-market, off-market, direct from homeowner, property wholesalers, and other real estate industry partners
FUND DETAILS
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- $3M Capital Raise: $25,000 per unit, minimum 2 units ($50,000), with a $1M minimum tranche
(2) NEW BUILD SFR RENTAL FUND
Acquires new construction single family homes in the high-growth markets of Phoenix and Tucson. The homes are leased and subsequently sold at the end of the investment term of 3 to 5 years. Addresses the need for affordable single family housing. New homes have lower maintenance costs with included builder and home warranties.
INVESTMENT FOCUS
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- Investment in newly built, never lived-in single-family homes for leasing
- High-growth markets of Phoenix & Tucson
INVESTMENT STRATEGY & VALUE PROPOSITION
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- Value Creation: Addresses need for affordable single-family housing
- High-Quality Rental Housing: Leased to highly-qualified tenants
- In-House Property Management: Ensures seamless leasing and portfolio management
INVESTMENT HIGHLIGHTS
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- Acquisitions Strategy: Leverage cash, bulk purchases, and builder incentives to for better pricing
- New Home Advantage: Better rental quality, lower maintenance costs and higher resale value
FUND DETAILS
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- $5M Capital Raise: $25,000 per unit, minimum 2 units ($50,000), with a $1M minimum tranche
(3) INDIVIDUAL INVESTMENTS
We sponsor individual multifamily syndications, development projects, opportunistic acquisitions, and historic renovation projects of varying size, asset class, and investor requirements. These deal structures allows investor capital to be leveraged into significantly larger properties and development opportunities, with reduced capital required per deal than possible if the investment was made on an individual basis. Plus all our deals are professionally managed and 100% passive investments for our investors.
DIVERSE INVESTMENT OPPORTUNITIES: Mid-Market Real Estate Private Equity
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- Deal Range: Multifamily, Residential, Commercial Development
- Variety: Diverse sizes, asset classes, and investor requirements
CAPITAL EFFICIENT: Diversifying Investor Capital
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- Benefits: Larger properties and developments to diversify cash flow
- Reduced Capital: Compared to a private individual investment in the same property
DEAL STRUCTURES & PROPERTY TYPES
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- Stabilized Properties: Legacy Assets with A+ location in supply-constrained markets command higher average price per square foot with added risk reduction
- Value-Add: Opportunity: Purchase at a reduced price due to below market rent and/or significant deferred maintenance yielding a higher return when renovated and leased up
- Ground Up Development: New mid-market projects under $25M total project cost
(4) GENERAL PARTNER FUND
Focuses on general partner (GP) development and acquisition opportunities as a co-GP investment partner. This allows investors to get in on the GP side for a modest commitment and take advantage of new market conditions affecting these types of projects.
Prospective assets are identified through a network of commercial real estate brokers, development partners, and industry-level data sources. For each project under consideration, we identify a set of assumptions that are critical to the pro-forma analysis. Due diligence is focused on these individual assumptions to create greater certainty of an unbiased pro-forma assessment.
This structure provides investors the opportunity to co-invest in the GP position of the capital stack with a lower equity requirement and higher potential return through carried interest.
INVESTMENT FOCUS
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- Focus: All types of Southwest Urban Capital projects, including developments and acquisitions
- Role: Co-GP investment partner for diversified investment opportunities
INVESTOR BENEFITS
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- Investment Access: Participate in all acquisitions / developments throughout the fund’s life cycle
- Investment Diversification: Multiple projects at various stages of the real estate investment cycle
- Potential For Higher Returns: Profit split with LP investors could enhance return
FUND STRUCTURE
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- Investment Range: This fund plans to invest 5%-60% of total equity requirement in future acquisitions and developments
- Capital Sources: GP capital, LP capital, and debt
- Profit Split: Once LP preferred returns are met, profit is split for the returns above the preferred level and contribute to GP funds total return
