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
The Investment Summary
The FAQ Document
Underwriting Walkthrough Video
Where should we send your Midtown Ridge- Investor Kit Access?
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).
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 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
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.
Market Vigor
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.
Where should we send your Midtown Ridge- Investor Kit Access?
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:
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
Optimal Loan and Higher Cash Flow
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.
Where should we send your Midtown Ridge- Investor Kit Access?
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.
Partially Renovated Units
Premium Upgrades
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?
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
The U.S. Economy is Strong
Rent vs Buy
Favorable Loans
Where should we send your Midtown Ridge- Investor Kit Access?
Request Midtown Ridge investor Kit
Investor Presentation (PDF)
The live presentation replay
Property Tour Video
The Investment Summary
The FAQ Document
Underwriting Walkthrough Video
Where should we send your Midtown Ridge- Investor Kit Access?
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).
Inflation Outpaced Wage Growth For 2 Years, Now Things Are looking Up
Rising Above Inflation: A Promising Turnaround in Wage Growth
Economic Uptick
Wage vs. Inflation
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?
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
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
Where should we send your Midtown Ridge- Investor Kit Access?
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
Connectivity Core
#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.
Named “Best Town Ever”
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?
Midtown Ridge: Incredible Location Along Retail Corridor
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?
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
The U.S. Economy is Strong
Rent vs Buy
Favorable Loans
Where should we send your Midtown Ridge- Investor Kit Access?
Request Midtown Ridge investor Kit
Investor Presentation (PDF)
The live presentation replay
Property Tour Video
The Investment Summary
The FAQ Document
Underwriting Walkthrough Video
Where should we send your Midtown Ridge- Investor Kit Access?
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).
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:
Tax Benefits
130 Units
Studio, 1/2/3 BDR
Built 1969
Purchased Nov. 2022
99% occupied (Dec 2023)
121 Units
1 BDR / 2 BDR
Built 1984
Purchased Aug. 2023
92% occupied (Dec 2023)
193 Units
Studio, 1/2/3 BDR
Built 1986
Under contract
93% occupied (Nov 2023)
Investment Class Structure
Projected Class B2 Returns
16.3%
IRR
Internal Rate of Return
20%
AAR
Average Annual Return
2.0x
EM
Equity Multiple
5
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.
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
Grocapitus
CEO & Founder
ANNA MYERS
Grocapitus
COO
Value-Add Multifamily Investment BENEFITS
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 project is projected to produce early positive cash-flow, making it a great investment for cash flow 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.
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
The Investment Summary
The FAQ Document
Underwriting Walkthrough Video
Where should we send your Midtown Ridge- Investor Kit Access?
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).
STEVE A., Grocapitus Investor
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