Solo 401K, SD-IRA, QRP
506c for Accredited Investors only
Short-Term Investment Highlights
Higher Cash Flow With Lower Risk
Receive higher cash flow and robust returns with significantly reduced risk in a short-term investment compared to common equity in our value-add multifamily projects.
Preferred Returns
Pref equity is higher in the capital stack so all $16.5M in investor equity would have to be lost first, for you, as a Pref Equity investor, to lose money or lose cash flow.
Lease-up and Stabilization
Pref Equity for The Falls at Crismon Commons is predominently needed for working capital during lease-up and stabilization of this gorgeous, brand new Class A apartment community.
14 - 16% Pref Equity Opportunity Investor Kit
The Deck / Investment Summary
The FAQ Document
The Investor Docs Kit
The investor presentation
IMPORTANT NOTE: We are raising the pref equity in tranches. The first tranche for $3.5M sold out quickly. We just opened the next traunch for $1.8M and expect it to go quickly as well. New investors will be accepted on a first come first serve basis, determined by document submission timestamp. You can access the investor portal containing the docs from the investor kit.
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).
Where should we send your 14 - 16% Pref Equity Opportunity- 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).
Short-Term Preferred Equity Returns (Per Year)
14 -16%
Annualized returns: split between cashflow and backend profits
7-8%
Annualized Cash Flow from Day 1
7-8%
Annualized Backend Profits
$100k
Minimum Investment
The Unique Benefits of Pref Equity
Take a Quick Tour of this Stunning New
Class A Apartment Community
Why This Could Be One of Our Lowest Risk Offers Yet
Safer Than LP Equity
The Pref Equity is senior to ~$16.5M of invested equity and has priority for both equity and cash flow
Short-Term Investment Timeframe
2-year investment timeline with high annualized interest returns
Immediate Guaranteed Cash Flow
Pref Equity quarterly cash flow starts immediately, and has priority over regular equity
Located in High Growth Market
Maricopa County is the fastest growing county in the U.S. and Phoenix-Mesa was ranked #2 best multifamily market in 2024 by Berkadia
Brand New Class A Apartment Community
This property is a highly desirable Class A asset in a great location near tons of amenities
Project History | The Story of The Falls
The project originated in 2017 when our highly experienced development partners, Overland Group, secured a contract for the land and embarked on pre-construction activities to build 240 units with 255,611 total rentable SF. Major milestones include:
2017: Initial Contract and Planning
2020: Official Approval, Permitting and Financing
The project gained unanimous approval from the planning commission. A short time later building permits were secured and the construction loan was arranged, setting the stage for physical development.
2021: Groundbreaking and Construction
Q1 2024: Phase 1 Completion
The clubhouse and the first major building of 164 units are finalized, marking a milestone in the project’s timeline, and lease up begins.
Final Phase:
Construction on the remaining building of 76 units progresses, with completion targeted for the third quarter of 2024.
Our Top Ranked Metro
Maricopa County has maintained its status as the nation’s fastest-growing county for three consecutive years, according to the U.S. Census Bureau, an incredible feat! This trend and its many other accolades showcases the region’s attractiveness, bolstered by a favorable climate, robust economy, and high quality of life.
#1 Population Growth, Maricopa County
Census, 2023
#1 Net Migration, Maricopa County
Census, 2022
#1 Best Cities for Retirement, Scottsdale
Niche, 2023
#1 Top Markets for Talent Attraction, Maricopa County
Lightcast, 2022
Wall Street Journal, 2023
#4 in U.S. for Small Business Job Growth, Phoenix Metro
Paychex, 2023
Phoenix-Mesa, AZ, within Maricopa County, is a prime investment choice due to its status as the nation’s top county for population growth.
Phoenix-Mesa Housing and Multifamily Markets
In the Phoenix-Mesa region, the astounding mismatch between housing availability and population demand presents a compelling case for investment in multifamily properties.
An analysis by Hines from January 2024 indicates the area is facing a shortfall of approximately 120,000 homes, which is ~6.5% of its total housing inventory.
#2 Best Multifamily Market in in 2024
Thanks to strong recent population and employment growth, a rise in supply and demand, Berkadia forecasts Phoenix-Mesa will earn the second spot in the nation this year.
As a result of the housing shortfall, there is a compelling case for multifamily to fulfill this gap and cater to the region’s housing needs.
Existing housing units relative to population demand in the Phoenix metro area
Annually; 1982-2022
14 - 16% Pref Equity Opportunity Investor Kit
The Deck / Investment Summary
The FAQ Document
The Investor Docs Kit
The investor presentation
IMPORTANT NOTE: We are raising the pref equity in tranches. The first tranche for $3.5M sold out quickly. We just opened the next traunch for $1.8M and expect it to go quickly as well. New investors will be accepted on a first come first serve basis, determined by document submission timestamp. You can access the investor portal containing the docs from the investor kit.
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).
Where should we send your 14 - 16% Pref Equity Opportunity- 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).
Why is Pref Equity Needed?
Rising interest rates have had a large impact on project costs, as a result, the anticipated annual interest on the construction loan has increased.
There has been an increase in supply of units in the Phoenix rental market, so we are being conservative with our rental rates, and we are increasing our expected lease-up period from 10 months to 12 months.
The Phoenix multifamily market has a forecast for rent growth resurgence in mid-2024. By mid-2025 robust rent increases of 4% are forecasted.
Our Business Plan
We have refinanced from the current high interest rate construction loan to an interest-only 3-year variable loan. We will be monitoring the following criteria closely to achieve an optimal exit, which is when Pref Equity will exit:
Market cap rates
Class A assets in the Phoenix-Mesa market remain a solid investment with cap rates projected to stay below 5% and trend downward.
Phoenix rent rates
We will be watching for rents to rebound in Phoenix, which may happen in 2024 or 2025.
Lease-up and stabilization
We plan to go through initial lease up, followed by renewal of first leases to bring rents to market rates.
– Munaf Z
How the Pref Equity Works
The Pref Equity class is a new equity tier that is senior to current shares. Therefore, your investment has a $16.5M cushion, reducing your risk.
Pref Equity Investors Receive:
14 – 16% annualized interest, sitting above common equity in the capital stack
7 – 8% annualized cash flow distributions starting immediately, distributed on a quarterly basis.
7 – 8% annualized back-end return when the equity is projected to be paid back when the project is sold, which is expected to be in 18 – 24 months.
Benefits for Pref Equity Investors
Although the upside is capped for new Pref Equity investors, there are many benefits that make it a great choice for many investors:
It is higher in the capital stack and is paid back PRIOR to any regular equity getting paid, giving it a lower risk profile.
Pref Equity investors receive their cash flow prior to any regular equity cash flow
This Pref Equity investment is an outstanding opportunity to profit from an outstanding Class A apartment community that has faced higher costs due to unprecedented market conditions. We are very optimistic about our plan to exit the property in 18-24 months.
This is an unusual chance to join us in a short-term lower risk, higher cash flow investment in one of our flagship construction projects.
14 - 16% Pref Equity Opportunity Investor Kit
The Deck / Investment Summary
The FAQ Document
The Investor Docs Kit
The investor presentation
IMPORTANT NOTE: We are raising the pref equity in tranches. The first tranche for $3.5M sold out quickly. We just opened the next traunch for $1.8M and expect it to go quickly as well. New investors will be accepted on a first come first serve basis, determined by document submission timestamp. You can access the investor portal containing the docs from the investor kit.
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).
Where should we send your 14 - 16% Pref Equity Opportunity- 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 Falls at Crismon Commons Management Team
Neal Bawa
Grocapitus
CEO & Founder
Anna Myers
Grocapitus
COO & General Partner
Dave Holman
Overland Group
President of Construction
Michael Holman
Overland Group
VP, Development and Finance
Rudy R., Grocapitus Investor
This material does not constitute an offer or a solicitation to purchase securities. An offer can only be made by the Private Placement Memorandum (PPM).The PPM and its exhibits contain complete information about the Property and the investment opportunity. The information contained herein is not a substitute for an investor’s complete review of all of the information attached to the PPM as part of their own due diligence regarding this investment opportunity and its suitability for their investment portfolio.
