Solo 401K, SD-IRA, QRP
506c for Accredited Investors
OUR TRACK RECORD (OVER 7 EXITS)
%
Overall AAR
%
Overall IRR
units, 10 states
Billion value of projects*
*Based on completed value
Introducing Park Avenue Villas
Value-Add Multifamily
The second property in the GRO Value-Add Multifamily Income Fund (GRO Income Fund)
Significant Value-Add Upside
There is massive untapped potential from the renovation of up to 98% of the units and other low hanging fruit that may increase rents.
4.4% Assumable Fixed Debt
The 4.4% fixed interest rate debt is well below market, and the 73% LTV (loan-to-value) is well above market.
Substantial 2023 Tax Benefits
Investors receive 80% bonus depreciation for ~$60K tax savings on a $100K fund investment.
Request the GRO Value-Add Multifamily Income Fund Online Investor Kit
Investor Presentation (PDF)
The live presentation replay
Park Avenue Villas Tour Video
GoFund Underwriting Walkthrough Video
The Investment Summary
The FAQ Document
Investor Portal Access
Park Avenue Villas Underwriting Walkthrough Video
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
An accredited investor, in the context of a natural person, includes anyone who:
Has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior 2 years and reasonably expects the same for the current year,
OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person's primary residence).
“Neal does wonders with investor money. The ROI with Neal beats all my projects with other firms. Besides this key aspect, I want to share a few other things.
Neal not only deploys many advanced technologies, concepts, and methods to identify opportunities, but also manages each project with unbeatable efficiency! Neal is a disruption force in his field, he has everything down to a science. He fuses the best practice of both technology and business, into his workflow. And he always seeks the truth. If you are with Neal, you are on the fastest train!”
JENNIFER F., Grocapitus Investor
Park Avenue VillaS
Partner with Grocapitus on our latest investment opportunity in the GRO Value-Add Multifamily Income Fund — Park Avenue Villas. It’s been over six months since we closed on Monarch Villas, the first project in the fund. During that time we have been diligently and patiently looking to acquire the right value-add property. We refused to purchase properties with frothy prices at the peak of the market.
As a result of our ultra-conservative property criteria, since closing on Monarch Villas we have reviewed over 1,000 deals, analyzed over 200 of the deals in our neighborhood demographics filter, and performed underwriting on 100 of the opportunities.
And now the wait is finally over! Welcome to Park Avenue Villas, the second property in the GRO Income Fund.
121 units Townhome style multifamily
Built in 1984
$128K/door
Assumable 4.4% FIXED interest debt
Park Avenue Villas is a 506c investment for accredited investors. The minimum investment is $50K for Class A Coupon and $75K for Class B with shared back end profits. The project is open to self-directed IRA’s.
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
Park Avenue Villas Strategic Business Plan
This well-maintained, one-story townhome community features ground floor private front and back entries to each unit and a very low-density site plan. There are fireplaces and private backyards for each unit.
Only two of the 121 units have been upgraded to premium units so our business plan is simple and straight forward, add significant value by renovating units. While we only need to upgrade 50% of the units to hit our strategic plan, up to 98% of the units can be renovated.
Perform strategic interior renovations for a projected $129 rent bump
- Stainless steel appliance package
- Tiled backsplash and countertop upgrade
- Updated paint
- Modern lighting and plumbing fixtures
- Fenced-in backyards for additional tenant privacy
Transform common areas
- Update the landscaping
- Modernize the branding (monument sign)
- Add a dog park
- Remove unsightly dumpsters and implement a valet trash service
- Improve the picnic/grill area
Disposition in 4-5 years
Park Avenue Villas is an ideal value-add opportunity due to the extremely large number of units that have the potential to be upgraded and better serve the needs of the tenants while commanding higher rents.
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
What We Love About PARK AVENUE VILLAS
Park Avenue Villas is a non-flashy value-add project, which is where we have achieved some of our best returns for investors.
This is the perfect investment for investors desiring cash flow AND significant backend profits from a proven and reliable business model.
This investment allows investors to take advantage of lucrative tax incentives such as depreciation and year 1 bonus depreciation. On a $100K investment, our initial estimate is that you will receive ~$60K of depreciation “paper losses” to offset other income in year one!
This property is EXACTLY what we look for in a value-add multifamily. It has a large number of units that can be renovated and a lot of low hanging fruit that will allow us to raise rents in a variety of ways without the need for risky, difficult to implement strategies.
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
The GRO INCOME Fund Is Outperforming
Our first property in the GRO Income Fund, Monarch Villas was purchased in Q4 2022 and is outperforming our projections. This 130 unit garden style Class B multifamily community sprawls 7 acres in Sandy Springs Atlanta. The renovation of 62 classic units is in progress and the early financials for the first six months of our property ownership are stellar:
Occupancy is a very strong 98.3%
Revenue is +8.3% over budget
Operating expenses are a massive 30.2% UNDER budget!
Net operating income (NOI) is +29.9% over projection
What is unique about Monarch Villas is that it is an affordable, nice place to live and tenants simply do not want to leave. In fact, many people have other family members move into the community to create multi-generational pods across apartments. We have increased rents to move towards market rents on lease renewals and the majority of people have opted to stay with no cost to turn the unit.
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
I have worked with Neal and his team at Grocapitus for four years, and I have the perspective of being a passive partner in his deals which have come full circle to completion. I also have the perspective of being a general partner in my own deals as well as a passive partner in deals with other syndicators.
Neal’s datacentric approach gives him a near oracle like insight into the vagaries of not just commercial real estate, but also macroeconomic trends as they impact microeconomic zones and industries. His ethics are beyond reproach and his interests are clearly aligned with his passive partners.
He is what you want in a partner, someone who is scanning the horizon for both threats and opportunities, someone who can hunt for the right prey at the right time, and you both get to dine on the feast together.
GURPREET P., Grocapitus Investor
THERE IS A STAGGERING POOL OF RENTERS
The Covid shock has made this the absolute worst time ever to buy a home, even worse than 2005 and 2006! As a result, the cost of ownership vs the cost of renting is completely out of whack, and has the widest gap on record:
Cost of Ownership vs Cost of Renting
In 2020, the income needed to own a starter home was ~$35K (U.S. avg)
In 2022, the income needed to own a starter home was ~$65K, up a whopping 88%
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
RENTS DO REALLY WELL IN A HIGH INFLATION ENVIRONMENT
Rent increases have averaged 3% a year over a 30 year span since the late 1980’s
During the 1974-1984 period of high inflation, avg rent increases were 3X the normal rate
Periods of high inflation correlate to higher rent growth, which is great for rental property owners like us.
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
The Housing Shortage
The gap between single-family home constructions and household formations grew to 6.5 million homes between 2012 and 2022. With U.S. housing supply under increasing pressure, it’s time to think outside the box.
WHY Florida?
We have actually been looking for value-add properties in Florida for quite some time because the Sunshine State is dominating other states with it’s real estate and economic performance.
Let’s start by looking at the unprecedented number of individuals making Florida their destination of choice.
#1 Domestic Migration
Rich States, Poor States, 2023
#2 State for Movers
U-Haul, 2022
#1 Talent Attraction
Lightcast, 2022
Florida doesn’t just shine in terms of lifestyle. Businesses thrive in Florida’s favorable climate. It was the hotspot for business development in 2022, and to top it off, it secured the prestigious #1 position for economic performance! Rest assured, Florida boasts an impressive AAA credit rating, mirroring the splendor of its beaches.
#1 Lowest Unemployment in Top 10 States
U.S. Census Bureau, 2022
#1 State for Economic Performance
Rich States, Poor States (2023)
#1 Business Development
U.S. Census Bureau, 2022
#2 State for Business
Chief Executive, 2023
#2 State to Start a Business
WalletHub, 2023
With its magnetic pull on people, businesses, and talent, Florida is the real deal, which is precisely why we are so confident in the potential for this project!
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
TaLLaHASSEE IS TERRIFIC
Steeped in rich history since its founding in 1824, Tallahassee boasts not only the prestigious title of state capital but also holds the distinction of being a thriving college town for over 150 years, hosting three prominent universities.
Renowned for its family-friendly atmosphere, plentiful events and festivals, local culinary delights, and a plethora of outdoor adventures. Tallahassee residents enjoy sun-kissed outdoor pleasures while reveling in the conveniences of urban living.
Boasting a population of nearly 200,000 and a consistent annual growth rate of 0.74%, this steady-eddy city is poised for dependable returns. Tallahassee holds impressive, investor attractive metro rankings such as:
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
TALLAHASSEE HAS MINIMAL Hurricane RISK
Tallahassee’s unique location is relatively safe from hurricane danger. Shielded by its inland location, residents and property owners enjoy a reduced vulnerability to the destructive forces of hurricanes compared to coastal cities.
This favorable positioning provides a sense of stability and reassurance for multifamily investors, as their properties are less susceptible to the potential damages and disruptions that hurricanes can bring. In fact, out of four major metros in Florida (Tallahassee, Miami, Orlando, and Tampa) Tallahassee is the ONLY metro area with ZERO documented hurricane incidents since 1850!
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
Tallahassee Rent Growth Is Strong
Tallahassee rent growth is increasing at a strong pace. It has an impressive monthly growth rate of +2.4% and a year-over-year increase of +4.7%. These figures signify a surge in rental demand, making Tallahassee an ideal choice for real estate investors seeking solid returns.
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
Park Ave Micro Neighborhood Popularity
The Park Ave micro neighborhood is within minutes from a variety of delicious eateries, shops, exceptional schools, and parks. Downtown Tallahassee is only 10 minutes away, perfect for the business professional working in the city or the night owl looking to get out and explore the town.
Stable, high-paying jobs, on top of easy accessibility, make the Park Ave neighborhood an excellent place for renters to call home.
72% of the neighborhood's employees working in white-collar positions
Strong job growth rate of +4.7%
85% of employment opportunities located within a convenient 30-minute commute
Astonishing 12.4% income growth rate over the last year!
This remarkable growth has positioned the neighborhood as the nation’s leader in income growth, providing its residents with unparalleled financial opportunities and stability.
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
Managed by the Best
By entrusting efficient management, investors can alleviate a significant amount of stress, knowing that every intricate aspect that contributes to tenant satisfaction is expertly handled. The correlation is evident: contented tenants result in reduced turnover and a more stable cash flow.
Because of this, we’re incredibly excited to announce that we have one of the best in the property management business, Bryten Real Estate, running Park Avenue Villas. This collaboration ensures that our property will be managed by true titans of the field, bringing their unrivaled expertise and experience to deliver exceptional results. A brief look at their track record shows the following:
Management of 200+ Properties
50,000+ Units Under Management
$8B+ Assets Under Management
1,200+ Team Members Across 10 States
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
“I always wanted to get involved in real estate investing, but never wanted the headaches that can be associated with being a landlord. I also knew that I lacked the knowledge needed to make informed investment decisions. Fortunately, a friend told me about Neal, Anna and the Grocapitus team. I was impressed with the ease of onboarding, detailed due diligence of opportunities to aid decision making, and great communication via monthly project updates. I was so impressed with their organization that in the last 2 1/2 years, I have invested in a total of seven projects. Our first project together, Greenfill Storage Depot, recently had an early exit that far exceeded our expected return! A true home run! Thank you Grocapitus!”
STEVE A., Grocapitus Investor
the GRO Value-Add Multifamily Income Fund
In our continued focus on capital preservation and risk mitigation for our investors, Park Avenue Villas is the second property in the new GRO Value-Add Multifamily Income Fund (GRO Income Fund).
Let’s take a look at a few of the advantages you have when you invest in the GRO Income Fund.
Portfolio Diversification
Diversification of your investment across multiple projects, and an increased level of exposure to investments in a variety of markets and asset classes.
Perfect Balance of Risk vs Return
By spreading out your investment across multiple properties you can expect your returns to be more stable. Funds are a great way to mitigate risk without sacrificing returns.
Diversified business plans
The opportunity to invest in different project business plans and that include various hold periods and cash flow potential.
Cash flow and back end profits
Class B investors in the GRO Income Fund may receive cash flow and will also have the chance to participate in the back end price appreciation upon sale, refinances, and supplemental loans.
Tax Benefits
More tax benefits, including 1031 exchange opportunities and potential accelerated depreciation.
Streamlined Investor Process
When you invest in the GRO Income Fund, you only have to sign one set of docs to spread your equity across multiple properties.
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
GRO VALUE-ADD Multifamily INCOME FUND
INVESTMENT CRITERIA
Class A & B Multifamily
100+ unit projects built in 1970-2010, with $20-50 million total capitalization per property.
High-Growth Sunbelt Markets
3-5 value-add multifamily properties in highly targeted, premier growth areas of top sun belt metros.
In-Place Cash Flow
Under performing or distressed value-add projects with cash flow and significant upside potential via cosmetic rehab.
1031 Exchange Eligibility
Some properties will be 1031 exchange eligible.
GRO INCOME FUND
TARGETED GROWTH MARKETS
GRO INCOME FUND
VALUE-ADD STRATEGY
Acquire Strategic Properties
Target properties built in 1970-2010, with cash flow in-place.
Increase Cash flow
Cosmetic rehab over 24 months. No major overhaul required.
Utilize Leverage
Use leverage to finance projects to increase returns.
Disposition
Once target property NOI is achieved, sell asset to capture resulting value appreciation.
MULTI-TIER GRO INCOME FUND STRUCTURE
CLASS A & B
GRO INCOME FUND TARGET RETURNS
CLASS B
(Based on a 5 yr hold)
13-18%
IRR
Internal Rate of Return
16-19%
AAR
Average Annual Return
5-7%
CoC
Cash on Cash (excluding sale)
1.5-1.9x
EM
Equity Multiple
Request the GRO Value-Add Multifamily Income Fund Online Investor Kit
Investor Presentation (PDF)
The live presentation replay
Park Avenue Villas Tour Video
GoFund Underwriting Walkthrough Video
The Investment Summary
The FAQ Document
Investor Portal Access
Park Avenue Villas Underwriting Walkthrough Video
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
An accredited investor, in the context of a natural person, includes anyone who:
Has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior 2 years and reasonably expects the same for the current year,
OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person's primary residence).
“I invested in Park Canyon with Grocapitus. Neal, Anna and team are both excellent at what they do and return better than predicted returns. For this particular project I received a 2.4 gross equity multiple return in less than 3 years. This way exceeded expectations.
What impresses me about Grocapitus is their quality research on every aspect of the market, their excellent communications and updates to investors, and their ability to add value to every property they touch.
I also appreciate their personal care about their investors and that they are accessible to discuss investments and concerns in a prompt manner. I highly recommend them for real estate investment.”
MARK C., Grocapitus Investor
How Grocapitus Selects Markets
Rent Growth
The 5 year rent growth forecast is one of our key indicators. We use a powerful proprietary method to calculate this value.
Sales Trends
We continuously monitor local sales to compute cap rates and determine whether our cap rates are on target to reach our projections.
Employment
Supply And Demand
INTRODUCING THE GRO INCOME FUND
MANAGEMENT TEAM
NEAL BAWA
Grocapitus
CEO & Founder
ANNA MYERS
Grocapitus
COO
PETE LEVINE
Grocapitus
Acquisitions & Dev Director
MEGAN HERREN
Grocapitus
Asset Management Director
GRO INCOME FUND BENEFITS
Diversification
Investor equity is invested over multiple acquisitions in multiple markets, with individual property business plans and hold periods.
Risk mitigation
Investment over multiple projects offers the ability to reduce risks while offering the potential for higher returns.
Leverage
Leverage our vast experience, financial sponsorship strength, and capital aggregation to invest in otherwise unobtainable, high-value apartments with high returns.
Tax-Advantaged INVESTING
Enjoy the potential for tax advantages such as 100% bonus depreciation, accelerated depreciation/cost segregation, passive income tax treatment, 1031 exchange, IRA investing, and death tax benefit.
Cash Distributions
The Grocapitus Value-Add Multifamily Income Fund is projected to produce positive cash-flow starting in year 1, making it a great investment for cash flow investors.
Capital Appreciation
Increased property value through physical and operational improvements that increase the value of the property by increasing Net Operating Income (NOI).
Principal Reduction
Through the life cycle of the syndication, rental income from the property pays down debt service. Upon the sale of the property principal reductions will be returned to investors.
Recession & Inflation Resistant
Regardless of the economy, people still need a place to live. Class A and B rental properties have done historically well in past recessions and in periods of high inflation.
Request the GRO Value-Add Multifamily Income Fund Online Investor Kit
Investor Presentation (PDF)
The live presentation replay
Park Avenue Villas Tour Video
GoFund Underwriting Walkthrough Video
The Investment Summary
The FAQ Document
Investor Portal Access
Park Avenue Villas Underwriting Walkthrough Video
Where should we send your GRO Value-Add Multifamily Income Fund- Investor Kit Access? PAV
An accredited investor, in the context of a natural person, includes anyone who:
Has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior 2 years and reasonably expects the same for the current year,
OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person's primary residence).
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