Preliminary Investor Projections

 

Average Investor Cash-On Cash: 7.0%

Net to Investor IRR: 21%  

MOIC/Equity Multiple: 2.76X

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Holding Period: Approximately 5 years

9% preferred dividend plus 75% of net profit upon disposition

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• $12,010,000 Acquisition price

• Over $1,300,000 Reserves and Capital Improvements to include:

  • Landscaping and Curb Appeal

  • Pool Upgardes and Grill Area

  • Green Energy Upgrades

  • Working Capital Reserve

  • 2 Year Bridge Loan to be Followed by Permanent Debt

  • Turn the property into the top tier working class community in the area, whiel keeping rents at the low-end of similar properties in the market

  • Offer an amentity package that is above its peers to attract the best residents

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Subject Property Executive Summary

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Tidegate Capital is pleased to offer to Accredited Investors the opportunity to acquire membership interests in a strong value-add workforce housing property well located in the fast growing Low Country area of South Carolina.

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• Formerly known as Oak Tree Village, Tidegate Capital has renamed the property Residences at Port Royal

• Year Built: 1977

• Wood frame with brick and glass exterior

• Originally renovated in 2012. Significant CapEx will be spent to renovate 80% of the units and improve the tenant profile.

• Community pool and dog park.

• Convert Inefficient Fixtures to LED lighting. 

• All units are separately metered​ for electricity and water and sewer that tenants pay themselves

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All units are currently paying well-below market rents with numerous leases held by long-term tenants. We are looking to execute rent increases via property renovations and tenant turnover in a high demand location with the potential to outperform the market.
 

The proposition reflects an excellent opportunity as a result of its superb location in a vibrant and growing region in the Low Country of South Carolina.

 

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Time Horizon

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Residences at Port Royal represents a "Value-Add Investment”, after initial CapEx renovations it is expected to produce growing cash flows over the projected 5 year holding period. 

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Surrounding Area

 

Beaufort County, South Carolina comprises the towns of Hilton Head Island, Bluffton, Port Royal, Parris Island, and the county seat: Beaufort. 

 

It is one of the fastest-growing counties in the southern United States due to development along the Broad River and the U.S. Highway 278 corridor. Additionally, the county has grown steadily as the military presence around the city of Beaufort has boosted local development, which includes the Parris Island Marine Corps Base, Naval Hospital Beaufort, and the Marine Corps Air Station (MCAS). 

 

With a thriving port in nearby Savannah, the increase of manufacturing and distribution facilities, and a growing technology sector, economic growth will be fueled moving forward. The Port of Savannah is one of the country's fastest-growing import/export terminals in the country, and the port continues to set records for monthly volume. In December 2022, Georgia Ports Authority Board approved a plan to improve the Port of Savannah’s Ocean Terminal to better accommodate its expanding container operation.

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Due to its picturesque coastal location, Beaufort County's tourism industry continues to have a strong economic impact.

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Preliminary projections, subject to revision. Real Estate investing involves risk,

including the potential for complete loss of principal.