What do you all think about this deal?

[Jack Mi]

I have been offered to invest as LP in multifamily apartment deal.

Underwriting is supposedly conservative and based on current cap rate (4.5%) and interest rate (7%) so if interest rates go down (which may as Fed has already started cutting rates), returns can be better than the projected ones as can have more buyers for Class A property in few years with lower mortgage rates. It's a brand new lease up multifamily apartment building with 60 units.

Loan estimate 8.1 M, LTV estimate 65%. LP 4.95 M and GP 0.55 M (so GP invest 10%) - total 13.6M.

Each LP invests 70K, distributions start a year after investing as it will take time to lease up, returns 80/20 LP/GP split, 17 - 20% AAR, 1.70 - 1.80x Equity Multiple with 3-4 years hold period. Acquisition fees, refinance fees and Asset management fess are 0%. Loan guarantor fees 2% and disposition fees 2% (paid only after investor return of capital).

Appreciate any thoughts on this?