Post House Apartments

Asset type: Apartment · Location: Evansville, Indiana

Post House Apartment 159 Unit, Class A, Core Plus, Fully Stabilized and Cash Flowing at 95% Occupancy Strong Projected Returns Cumulative Preferred Return: 8% Return of Capital Before Profit Split: 100% Average Annual Return (cash flow and profit on sale): 21%+ Internal Rate of Return: 17-18% Average Cash-on-Cash Return (cash flow during holding period): 10 - 10.75% Equity Multiple: 2.0 - 2.1x It’s located in a strong, economically diverse economy. Evansville, Indiana, the third largest city in Indiana, is home to many national and international corporate headquarters, the Toyota manufacturing facility that is adding a $1.4 Billion battery electric vehicle expansion, has a strong medical hub, and numerous colleges and universities. Evansville ranks third in the nation for cities adding the most hi-income earning households. It's located in an area experiencing strong population growth. Downtown Evansville, where Post House is located, has experienced over 25% population growth since 2010. It is located in an area that has strong demographics. Downtown’s median home value is twice that of the overall city. The total assessed values downtown are more than four times the citywide value. 15% of the total citywide employment is downtown. Purchased at the right price. We purchased Post House at less-than replacement cost, at a 7.14% cap rate, which is virtually unheard of for a fully-stabilized, 95% occupied Class A apartment complex. We have identified value-add strategies. We are implementing strategies to increase the net operating income, the cash-flow that our investors receive each quarter, and significantly increase the overall value of the properties, targeting ~$1 Million in additional Net Operating Income by the end of Year 3. We have identified an added feature to ensure strong profits. Prosperity CRE purchased the property directly from the developer. As an incentive to build Post House, the developer obtained from the City of Evansville a municipal bond that essentially offsets the property tax. When we acquired Post House, we also acquired the municipal bond. That bond pays us ~$7.35 Million over the course of the next 16 years. This is in addition to the income generated by the property, and essentially offsets the annual property tax. Post House will provide significant tax benefits. In addition to the strong projected average annual returns of over 20% (including ongoing cash flow paid quarterly, and profits on sale), Post House will provide significant tax benefits, ideal for investors looking to offset other income. We have conducted a cost segregation study and are accelerating the depreciation paper tax loss. The depreciation loss is passed on 100% to our investors.