Solo 401K, SD-IRA, QRP

506c for Accredited Investors only

Investment Highlights

Preferred Equity Reduces Risk

Receive higher cash flow and robust returns with significantly reduced risk compared to common equity in our value-add projects.

Lower Risk, Faster Returns

You are higher in the capital stack – All $8.4M in investor equity would have to be lost first, for you, as a pref equity investor, to lose money or lose cash flow.

Invest in Overperforming Property

Park Canyon is our top performing property in the last several years in terms of occupancy and NOI growth.

14 -15% PREF EQUITY OPPORTUNITY Investor Kit

7 - 8% annualized cashflow on day 1, plus 7% annualized backend

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 Deck / Investment Summary

The FAQ Document

The Investor Docs Kit

The live presentation replay

Where should we send your 14 -15% Pref Equity Opportunity- 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.

Preferred Equity Returns per year

14 -15%

Annualized returns: split between cashflow and backend profits

7-8%

Annualized Cash Flow from Day 1

7%

Annualized Back End Profits

$100k

Minimum Investment

Park Canyon is the Jewel of our Portfolio

Since our purchase in Jan 2022, the property has performed far beyond the proforma, month after month, just like clockwork. As you will see below, occupancy and net operating income (NOI) are very strong every month.

In fact, we are thrilled with the performance of the property and consider it to be a unicorn.

So then why do we need to raise money for the project?  We are in the worst multifamily market since the great recession in 2008.  The unprecedented rise in interest rates, along with an unfriendly lender, has negatively affected our business plan. More on this below…

Where should we send your 14 -15% Pref Equity Opportunity- Investor Kit Access?

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

Park Canyon Occupancy
Continues to Outperform

96% average occupancy has beaten the proforma budget every month of ownership. Combined with low delinquency and turn over, this property has the most predictable operating income in our entire portfolio.

Park Canyon Net Operating Income (NOI)
Consistently Exceeds Projections

Park Canyon has consistently stood out as the top-performing community in our portfolio, demonstrating remarkable performance during both our initial ownership from 2019 to January 2022 and our current ownership.

Where should we send your 14 -15% Pref Equity Opportunity- Investor Kit Access?

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

Park Canyon Business Plan has changed

When purchasing the property, our business plan was to build 40+ new units to add significant value to the project. We were zipping along and got to the point where we were fully permitted and ready to build. Then, CoreVest, our lender, refused to offer the initial loan amount based on their updated assessment of the property value, despite it’s overperformance. This was based entirely on the increase in market cap rates over the last 18 months, not on the property’s performance.

As a result, CoreVest was requiring an additional $4M in equity just to lend us $2M for construction. These new draconian terms create an undesirable outcome for our investors so we did not consider this a viable approach. instead we are raising $2.5M in Pref equity to refinance into a fixed loan.

Where should we send your 14 -15% Pref Equity Opportunity- Investor Kit Access?

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

14 -15% PREF EQUITY OPPORTUNITY Investor Kit

7 - 8% annualized cashflow on day 1, plus 7% annualized backend

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 Deck / Investment Summary

The FAQ Document

The Investor Docs Kit

The live presentation replay

Where should we send your 14 -15% Pref Equity Opportunity- 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.

Here’s What Changed

Since our purchase 18 months ago, the Federal Funds rate has risen from 0% to 5.25%. This dramatic increase in interest rates is not favorable for ground-up development borrowing because it significantly increases the cost to finance and build.

Cap rates have risen substantially, reducing property value.

This double whammy has made construction of the new units a “no go” for the foreseeable future.

With our plan for new construction, a bridge loan made perfect sense at the time of purchase. However, it is not fixed rate and the huge increase in the mortgage payments has resulted in negative monthly cash flow, despite growing net operating income.

And since short-term multifamily exit values have declined a catastrophic 25-30%, selling now is not in the best interest of the existing investors either. Refinancing to a fixed rate loan is the highest profit / lowest risk approach, which allows the property to have hundreds of thousands of dollars in immediate annual cash flow.

Where should we send your 14 -15% Pref Equity Opportunity- Investor Kit Access?

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

A Bright New Plan

After diligently exploring all of our options, refinancing out of the current floating loan into a fixed loan is the best path forward. After the refi the property should immediately be cash flow positive.

Our new plan is to refi into a Freddie Mac 5 yr fixed loan at a rate of ~6.3-6.5% with 2 years interest only and 35 year amortization.

But in order to do the refi, we need additional $2.5M in equity, which we are raising as pref equity.

Where should we send your 14 -15% Pref Equity Opportunity- Investor Kit Access?

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

I’ve been extremely happy about the Park Canyon project. Neal, Anna and the Grocapitus team were truly professional and diligent during the entire time. They stayed on top of everything, never missed one single monthly / quarterly update (which is really amazing!). They went extra miles to ensure that the investors get the best possible return. For example, before selling the project, they even redesigned the Offering Memorandum pages by the broker to make it look more attractive to potential buyers.”

– Chong Z

How the Pref Equity Works

The new Pref Equity class ( Pref+) is a new equity tier that is senior to current shares. So, your investment has an $8.4M cushion, reducing your risk.

Pref Equity Investors Receive:

14 – 15% annualized interest, sitting above common equity in the capital stack

7-8% annualized cash flow distributions starting immediately, distributed on a quarterly basis.

7% annualized back-end return when the equity is projected to be paid back through a supplemental loan, which is expected to be in 2 years.

Where should we send your 14 -15% Pref Equity Opportunity- Investor Kit Access?

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

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

With the low leverage of the senior loan at ~60%, we believe that this Pref Equity is in a safe position for repayment.

This Pref Equity investment is an outstanding opportunity to profit from an amazing project that has to pivot due to unprecedented market conditions. We are very optimistic about our new plan with a fixed-rate loan and immediate cash flow.

For a Pref Equity investment, we believe it doesn’t get much better than this. This is an unusual chance to join us as a new investor in our crown jewel, Park Canyon.

Where should we send your 14 -15% Pref Equity Opportunity- Investor Kit Access?

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

14 -15% PREF EQUITY OPPORTUNITY Investor Kit

7 - 8% annualized cashflow on day 1, plus 7% annualized backend

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 Deck / Investment Summary

The FAQ Document

The Investor Docs Kit

The live presentation replay

Where should we send your 14 -15% Pref Equity Opportunity- 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.

Take a Quick Tour of Park Canyon

This is a stabilized property, and most units have already been rehabbed.

The Grocapitus Management Team

Neal Bawa Headshot

Neal Bawa

Development

Anna Myers

Development

Pete Levine

Development

Megan Herren

Asset Management

“Neal and his Grocapitus team are awesome! I’ve invested in 4 projects with him and after 2 years we’ve already sold one. He’s outperformed other syndicates that I’ve invested with for much longer. I love getting his monthly updates. It’s rare to have a syndicator update us so regularly.

Grocapitus is a breath of fresh air. They do things differently and way better than their competitors. Thank you Neal for being an amazing leader to your team! I couldn’t be happier with the results so far. Looking forward to investing more in the future.”

Sarah L., 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.

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