55-Unit Value Add Success

[Nate Shields]

Closed on a 55-Unit Apartment Complex!

Hey BP family,

I’m excited to share a major win with you all! Our team at Missional Capital Group just closed on The Timbers Fund—a 55-unit apartment complex located in Alabama. 🎉

This deal came with several benefits that we believe set it apart from traditional syndications:

1. Low Leverage & Investor Protection: We’ve committed to a low-leverage strategy to protect our investors, which we believe adds an extra layer of security in today’s market. We’ll only consider additional debt when it maximizes liquidity or improves risk-adjusted returns. For this particular deal, we put down 55%. When it makes sense to refinance in the future, we'll take advantage of that.

2. Attractive Investor Returns: With an 80/20 LP/GP split for cash flow and upside, we've projected a 12-16% IRR over a 5-10 year hold period. We also offered a unique 85/15 split for investors who commit $250K+ (Missional Shares), including an 8% preferred return. Plus, we've given $1,000 to a charity of choice for every Missional share purchased!

3. Local Market Growth: Florence is part of the growing Shoals area, with 39%+ population growth since 2000 and proximity to Huntsville, one of the fastest-growing MSAs in the U.S. The area’s economic development is strong, supported by tech sector growth and proximity to several major cities like Nashville and Birmingham.

4. Added Value: Since we've invested in this market for the past 6 years, we have incredible property management in place. The biggest opportunity we saw with this property was operational and management efficiencies. Some of the rents were as low as $800 and we've successfully brought those up to market ($1,000+). There were also a number of vacancies. As of this post, all 55 units are occupied. This has all been accomplished in just a few short months.

5. Tax Benefits & Investor Alignment: We’ve lined up cost segregation studies, allowing our investors to benefit from bonus depreciation in Year 1. Additionally, the Missional team has committed more than $500,000 of our own capital into the fund, aligning our interests with our investors’.

This win marks another step in our mission to deliver stable, long-term real estate investments while making a positive impact. If you’re curious to know more or share similar experiences, we'd love to connect!

Stay invested!

P.S. Huge shoutout to BiggerPockets and the community! We got our start back in 2016 with a single family foreclosure and now own 95 units. Upward and onward!

[Sean Graham]

Quote from @Nate Shields:

Closed on a 55-Unit Apartment Complex!

Hey BP family,

I’m excited to share a major win with you all! Our team at Missional Capital Group just closed on The Timbers Fund—a 55-unit apartment complex located in Alabama. 🎉

This deal came with several benefits that we believe set it apart from traditional syndications:

1. Low Leverage & Investor Protection: We’ve committed to a low-leverage strategy to protect our investors, which we believe adds an extra layer of security in today’s market. We’ll only consider additional debt when it maximizes liquidity or improves risk-adjusted returns. For this particular deal, we put down 55%. When it makes sense to refinance in the future, we'll take advantage of that.

2. Attractive Investor Returns: With an 80/20 LP/GP split for cash flow and upside, we've projected a 12-16% IRR over a 5-10 year hold period. We also offered a unique 85/15 split for investors who commit $250K+ (Missional Shares), including an 8% preferred return. Plus, we've given $1,000 to a charity of choice for every Missional share purchased!

3. Local Market Growth: Florence is part of the growing Shoals area, with 39%+ population growth since 2000 and proximity to Huntsville, one of the fastest-growing MSAs in the U.S. The area’s economic development is strong, supported by tech sector growth and proximity to several major cities like Nashville and Birmingham.

4. Added Value: Since we've invested in this market for the past 6 years, we have incredible property management in place. The biggest opportunity we saw with this property was operational and management efficiencies. Some of the rents were as low as $800 and we've successfully brought those up to market ($1,000+). There were also a number of vacancies. As of this post, all 55 units are occupied. This has all been accomplished in just a few short months.

5. Tax Benefits & Investor Alignment: We’ve lined up cost segregation studies, allowing our investors to benefit from bonus depreciation in Year 1. Additionally, the Missional team has committed more than $500,000 of our own capital into the fund, aligning our interests with our investors’.

This win marks another step in our mission to deliver stable, long-term real estate investments while making a positive impact. If you’re curious to know more or share similar experiences, we'd love to connect!

Stay invested!

P.S. Huge shoutout to BiggerPockets and the community! We got our start back in 2016 with a single family foreclosure and now own 95 units. Upward and onward!

Good work Nate! Glad to see the investors are receiving those depreciation benefits 

[Nate Shields]

Thanks @Sean Graham!

[Andrew Syrios]

Looks like a great deal Nate, congrats!