Solo 401K, SD-IRA, QRP

1031 Exchange Eligible

506c for Accredited Investors

Request Midtown Ridge investor Kit

Investor Presentation (PDF)

The live presentation replay

Property Tour Video

Underwriting Walkthrough Video

The Investment Summary

The FAQ Document

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe

This is a 506c investment for accredited investors. Can I invest if I am non-accredited

Grocapitus Investments offers investment opportunities for both Accredited and non-accredited (sophisticated) investors. We follow SEC guidelines, and we only post projects for Accredited investors to our website.

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).

If you are a non-accredited investor and would like to learn more about our investment projects, please fill out an investor application and we will contact you with information about available opportunities.

OUR TRACK RECORD (OVER 7 EXITS)

%

Overall AAR

%

Overall IRR

units, 10 states

Billion value of projects*

*Based on completed value

4 Powerful Reasons to Invest in Midtown Ridge Value-Add Multifamily

Highly Discounted Price!

We are buying at 37% below our peak offers in 2022, with a 6.8% cap rate, the highest purchase cap rate we have seen.

Optimal Agency Loan

The 5 years interest only, 5.3% fixed rate agency loan has a  79% LTV (loan-to-value), with no expensive rate cap needed.

Low Inventory Market

Chattanooga is experiencing all-time high rent growth and occupancy levels, with 2024 demand projected to outpace new supply.

Higher Cash Flow

This project produces higher natural cash flow compared to typical deals today due to advantageous loan structure.

“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

Midtown Ridge: A Chattanooga Treasure

Join Grocapitus on our newest venture, Midtown Ridge—an investment opportunity nestled in the heart of Chattanooga, TN. This 193-unit property, strategically located off the I-24 & I-75 connector, promises proven value-add potential with additional upside in a high-growth market.

Take a look at the details for the latest addition to our strong portfolio:

Unit Count: 193 units of townhome-style multifamily living.

Year Built: 1984

Cost per Door: $128,000

Debt Details: Assumable 5.3% FIXED interest debt.

And even more, the city of Chattanooga, TN, showcases massive amounts of potential:

Market Vigor

Chattanooga boasts record rent growth and occupancy levels, consistently outperforming peer cities, with demand set to outstrip supply into 2024.

Gig City Advantage

Known as the “Gig City” for having the world’s fastest internet, Chattanooga attracts tech firms and startups leveraging this high-speed connectivity.

Outdoor Lovers Paradise

Chattanooga is surrounded by breathtaking outdoor opportunities that attract adventure lovers from all over the world to move to this growing city.

Midtown Ridge is a 506c investment for accredited investors. The minimum investment is $50,000 for Class A Coupon and $75K for Class B with shared back-end profits. Don’t miss out on this exciting venture in one of the Southeast’s fastest-growing markets.

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Top Reasons to Invest in Midtown Ridge

Highly Discounted Purchase Price

We’re acquiring at an attractive cap rate of 6.8%, a notable increase from the current mid-5% average and a substantial improvement from the low 4% rates observed 18 months ago.

“Steady Eddy” Market:

Rent growth in Chattanooga has remained stable, has avoided overheating, and there is no imminent threat of aggressive incoming oversupply.

Strong Value-Add Opportunity

We plan to proceed with strategic upgrades for ~40% of the units to enhance immediate appeal while preserving the potential for comprehensive renovations by future investors.

Conservative Underwriting

Midtown Ridge has maintained a 4.5% vacancy rate in the past 6 months, but our underwriting adopts a conservative estimate of 6%.

Optimal Loan and Higher Cash Flow

A fixed rate loan with 79% LTV, 5 years interest-only, and a competitive 5.3% interest rate ensures higher natural cash flow compared to similar deals

1031 Eligible

Yes you can 1031 exchange into Midtown Ridge! But we have a limited number of 1031 spots available. $250K is the minimum 1031 investment, with preference given to $500K and above.

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Midtown Ridge Strategic Business Plan

We’ve crafted a business plan focusing on both interior and exterior enhancements to elevate the resident experience and maximize returns.

Interior Renovations

Partially Renovated Units

Our value-add strategy targets the transformation of 79 Classic units, propelling them beyond the existing standards of the partially renovated spaces. With an average rent increase of $170, these spacious units set the stage for our value-add strategy.

Premium Upgrades

In preparation for sale, we’ll elevate select units to a premium level with granite/quartz countertops and stainless steel appliances, demonstrating additional value and potential for higher returns.

Exterior Renovations

We are strategically directing substantial capital towards enhancing the property’s curb appeal through a series of exterior improvements.

These include rebranding, refurbishing the pool area and furnishings, revitalizing interior common areas and walkways, power washing the brickwork, and upgrading the landscaping. Such visible enhancements are vital in justifying premium rents across all units.

Where should we send your Midtown Ridge- Investor Kit Access?

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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

Why It Is FINALLY A Great Time To Buy Multifamily

Rates Will Fall

Interest rates have peaked and are on their way down in 2024, with many top institutions forecasting significant interest rate cuts for 2024.

Massive Discounts

Huge discounts are being offered on multifamily due to recent ultra-high interest rates, even though rates appear to have peaked and have already started to move down.

The U.S. Economy is Strong

Our economy has avoided a recession and is doing phenomenally well. The FED has orchestrated a soft landing and wage growth has finally surpassed inflation.

Rent vs Buy

The monthly purchase cost now exceeds rent by a whopping 50%. For most people, it is better to rent than to buy a home.

Favorable Loans

Buying properties with fixed interest rate interest only loans is better than ever.

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe

Request Midtown Ridge investor Kit

Investor Presentation (PDF)

The live presentation replay

Property Tour Video

Underwriting Walkthrough Video

The Investment Summary

The FAQ Document

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe

This is a 506c investment for accredited investors. Can I invest if I am non-accredited

Grocapitus Investments offers investment opportunities for both Accredited and non-accredited (sophisticated) investors. We follow SEC guidelines, and we only post projects for Accredited investors to our website.

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).

If you are a non-accredited investor and would like to learn more about our investment projects, please fill out an investor application and we will contact you with information about available opportunities.

Inflation Outpaced Wage Growth For 2 Years, Now Things Are looking Up

Rising Above Inflation: A Promising Turnaround in Wage Growth

Economic Uptick

The U.S. added 216,000 jobs, maintaining the unemployment rate at a near-record low of 3.7%

Wage vs. Inflation

After 2.5 years where inflation consistently eclipsed wage3 increases, the trend is reversing.

Real Gains

Employees are finally seeing ‘real’ wage growth. July 2023 marked a peak with wages growing at 5.1% annually, staying above inflation rates.

Economic Implications

The robust jobs report diminishes the need for further stimulus. Previous expectations for Federal Reserve rate cuts have cooled, with a reduced likelihood from 100% to about 70%.

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe
I was an investor in Neal and Anna’s Equinox at Knight Atlanta apartment project and couldn’t be happier with the results.
Not only did Grocapitus navigate us through the Covid pandemic and the unprecedented rise in interest rates, they exceeded expectations by doubling my investment within four years.  They were also able to offer a 1031 exchange option at the end of the investment.

I’ve always been impressed with Neal’s knowledge of the market, and now I’m even more impressed with his team’s on-time communications and thorough explanations of the financials and strategies being employed. I will definitely invest with the Grocapitus team again.

BRIAN H., Grocapitus Investor

Tennessee IS ON THE RISE

The state’s winning formula of affordability, low business costs, strategic location, and a skilled workforce has positioned it as a premier investment destination.

International companies, such as Volkswagen in Chattanooga, have been instrumental in shaping Tennessee’s economic success. Boasting over 1,000 foreign-based businesses, the state has attracted investments surpassing $47 billion, fostering employment for more than 161,900 Tennesseans.

The statewide surge in business filings, particularly in populous counties like Davidson, Shelby, Knox, and Hamilton, signifies a robust environment for job creation, income growth, and state revenue. Tennessee’s resilience is highlighted by its December unemployment rate of 3.8%, reflecting consistent recovery from the pandemic’s impact.

#5 State for Movers

Uhaul, 2023

5.8% 2023 Manufacturing Growth

IBIS World

9.2% Population Growth over the Last Decade

U.S. Census Bureau

As Tennessee continues to shine as a beacon of economic resilience and diversity, the excitement around investing in the state reaches new heights. Beyond the automotive sector’s successes, the vibrant business ecosystem, skilled workforce, and strategic advantages propel Tennessee to the forefront of investment opportunities. With consistent growth, low unemployment, and a business-friendly environment, now is a thrilling time to be part of Tennessee’s flourishing landscape.

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe

Investing in Chattanooga means more than financial gains—it’s a gateway to a thriving city where economic resilience meets natural charm. In the bustling heart of the Southeast, Chattanooga beckons investors with its strategic advantages and economic vitality.

Nestled within a 2-hour drive to key Southeast markets, Chattanooga offers abundant opportunities for business growth and employment with its strategic location.

Chattanooga beckons with strategic advantages—an ideal proximity to key markets, diverse industries, and logistical excellence. As the #1 Fastest Growing City in Tennessee, it blends economic vitality with Southern charm.

Industry Diversity

From healthcare to manufacturing, the city’s diverse industry landscape creates a conducive environment for economic prosperity.

Connectivity Core

Chattanooga’s logistical prowess ensures superior distribution capabilities, making it an ideal hub for efficient market reach.

#1 Fastest Growing City in Tennessee

And even beyond strong economic indicators and consistent growth, the people and natural environment of Chattanooga make this city a true gem in the South:

#1 Best Place to Retire In the South

Southern Living, 2023

#4 Friendliest City In the U.S.

Study Finds, 2023

Named “Best Town Ever”

Outdoor Magazine, 2022

Invest in Chattanooga and become part of a narrative where success and prosperity converge in the scenic heart of the Southeast.

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe

Midtown Ridge: Incredible Location Along Retail Corridor

Discover the unparalleled convenience of Midtown Ridge, nestled in the heart of the coveted Brainerd neighborhood in Chattanooga. This vibrant community, boasting a staggering 36.6% home value appreciation, provides a prime location just four miles southeast of Downtown Chattanooga. With seamless access to Interstates 24 and 75, Midtown Ridge ensures quick connectivity for your daily commute.

The neighborhood’s allure extends beyond mere accessibility, with an array of attractive shops and boutiques along Brainerd Ave, proximity to the Hamilton Place Mall. Brainerd offers the perfect blend of urban convenience and suburban tranquility, placing tenants just steps away from the bustling energy of downtown and the boundless outdoor adventures that await.

Asset Living: Industry-Leading Property Management

Asset Living is a true third-party property management firm with decades of experience delivering exceptional value to partners across the nation and is a recognized industry leader. This is the 4th property we are working with Asset Living, and one of those properties is only 30 minutes away in Dalton, GA.

37+ Years of Experience

125,000+ Beds Under Management

200,000+ Units Under Management

#1 NMHC's Top 50 Manager For Multifamily

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe
“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

Why It Is FINALLY A Great Time To Buy Multifamily

Rates Will Fall

Interest rates have peaked and are on their way down in 2024, with many top institutions forecasting significant interest rate cuts for 2024.

Massive Discounts

Huge discounts are being offered on multifamily due to recent ultra-high interest rates, even though rates appear to have peaked and have already started to move down.

The U.S. Economy is Strong

Our economy has avoided a recession and is doing phenomenally well. The FED has orchestrated a soft landing and wage growth has finally surpassed inflation.

Rent vs Buy

The monthly purchase cost now exceeds rent by a whopping 50%. For most people, it is better to rent than to buy a home.

Favorable Loans

Buying properties with fixed interest rate interest only loans is better than ever.

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe

Request Midtown Ridge investor Kit

Investor Presentation (PDF)

The live presentation replay

Property Tour Video

Underwriting Walkthrough Video

The Investment Summary

The FAQ Document

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe

This is a 506c investment for accredited investors. Can I invest if I am non-accredited

Grocapitus Investments offers investment opportunities for both Accredited and non-accredited (sophisticated) investors. We follow SEC guidelines, and we only post projects for Accredited investors to our website.

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).

If you are a non-accredited investor and would like to learn more about our investment projects, please fill out an investor application and we will contact you with information about available opportunities.

The 3 Property GRO Value-Add Multifamily Income Fund

The GRO Value-Add Multifamily Income Fund (GRO Fund) is designed to prioritize capital preservation and risk mitigation for our investors. As the third and final addition to the Gro Fund, Midtown Ridge is the perfect final investment to complete a wonderful trifecta of sunbelt properties.

This is an amazing opportunity to come into the GRO Fund at an optimal time, right as it is closing. It’s ideal because from the moment you invest your money, 100% of it will be deployed immediately. The two previous projects, Monarch Villas and Park Ave Villas were purchased over the past year. This is your chance to sneak into the GRO Fund as it is closing, but the opportunity won’t last long.

By investing in Midtown Ridge through the GRO Fund, investors take on a wide range of benefits like the following:

Portfolio Diversification

Spread your investment across multiple projects, gaining exposure to diverse markets and asset classes.

Diversified Business Plans:

Invest in projects with different business plans, including varied hold periods and cash flow potential.

Tax Benefits

Unlock more tax benefits, including 1031 exchange opportunities and potential accelerated depreciation.
N

130 Units

N

Studio, 1/2/3 BDR

N

Built 1969

N

Purchased Nov. 2022

N

99% occupied (Dec 2023)

N

121 Units

N

1 BDR / 2 BDR

N

Built 1984

N

Purchased Aug. 2023

N

92% occupied (Dec 2023)

N

193 Units

N

Studio, 1/2/3 BDR

N

Built 1986

N

Under contract

N

93% occupied (Nov 2023)

Investment Class Structure

Projected Class B2 Returns

join us for the presentation to see the projected returns across all classes!

16.3%

IRR
Internal Rate of Return

20%

AAR
Average Annual Return

2.0x

EM
Equity Multiple

5

Year Hold
 
“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.

g

Employment

We look for metros and submarkets that are adding a significant number of high-paying jobs, resulting in a stable local economy.

Sales Trends

We continuously monitor local sales to compute cap rates and determine whether our cap rates are on target to reach our projections.

Supply And Demand

We monitor the supply of local units carefully to ensure it will not spike the vacancy rates and negatively impact rents.

INTRODUCING THE MANAGEMENT TEAM

Neal Bawa Headshot

NEAL BAWA

Grocapitus
CEO & Founder

Neal Bawa Headshot

ANNA MYERS

Grocapitus
COO

Value-Add Multifamily Investment BENEFITS

Z

Leverage

Leverage our vast experience, financial sponsorship strength, and capital aggregation to invest in otherwise unobtainable, high-value apartments with high returns.

Z

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.

Z

Cash Distributions

The project is projected to produce early positive cash-flow, making it a great investment for cash flow investors.

Z

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.

Z

Capital Appreciation

Increased property value through physical and operational improvements that increase the value of the property by increasing Net Operating Income (NOI).

Request Midtown Ridge investor Kit

Investor Presentation (PDF)

The live presentation replay

Property Tour Video

Underwriting Walkthrough Video

The Investment Summary

The FAQ Document

Where should we send your Midtown Ridge- Investor Kit Access?

Privacy Policy: We hate spam and promise to keep your email address safe

This is a 506c investment for accredited investors. Can I invest if I am non-accredited

Grocapitus Investments offers investment opportunities for both Accredited and non-accredited (sophisticated) investors. We follow SEC guidelines, and we only post projects for Accredited investors to our website.

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).

If you are a non-accredited investor and would like to learn more about our investment projects, please fill out an investor application and we will contact you with information about available opportunities.
“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

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© Copyright 2024 · Grocapitus Investments · All rights reserved · Privacy Policy

The information contained in this excel model / projection and in the described materials (“the information”) is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. We advise all parties to do their own research and obtain independent financial, legal and professional advice before making any investment and business decisions. Your personal individual financial circumstances must be taken into account before you make any investment decision. Grocapitus, its directors, office holders, presenter(s), its authorized distributors, promoters and licensees, their employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. The information supplied is always subject to alteration without notice. Grocapitus, Urbanist, its authorized distributors, promoters, licensees, associates and employees may hold shares and/or obtain fees and/or other benefits from the companies presented and promoted in the described materials. To the extent permitted by law, Grocapitus gives no warranty and make no representation as to the accuracy of excel model / projection and accept no liability for any loss which may be suffered by any person who relies either wholly or in part upon the information presented. All parties must only rely upon the contents of any legal agreements, formal disclosure statements and their own research and enquiries in relation to any property to be acquired and/or contracts entered into.