Gelt is excited to present to you with our next exclusive investment opportunity. We are acquiring a 352-unit apartment building in Northglenn, Colorado (Denver Area) with a tremendous opportunity to achieve stable cash on cash yields and significant equity enhancement over the hold. We are setting up a Limited Liability Company called Gelt Irma Holdings, LLC to invest in "Regatta Apartments." We are offering our investors a 7% Preferred Return on their investment. If a 7% preferred return is not achieved on an annual basis, any shortfall will accrue in each investor's account, and will be paid from future cash flows and/or refinance or sale proceeds. After a 7% preferred return is distributed to investors, remaining cash flow will be split 50/50 between investors and Gelt. Upon refinance or disposition of the property, any accrued unpaid preferred return will be paid first, then 100% of investor equity will be paid back in full. All remaining proceeds from refi or sale will be split 70% to the investors and 30% to Gelt. Conservatively, the project is expected to produce an estimated average deal level cash on cash return of 7.41% over the life of the anticipated hold period, with an estimated deal level equity multiple of 2.21X.
Including the capital expenditures budget, reserves, fees and closings costs, the property is being acquired for approximately $104.9 million, and we are obtaining approximately $59.8 million in debt. Please see page six of the Offering Memorandum for more details.
We are raising approximately $45.1 million and space is extremely limited so please reserve space as soon as possible.
All numbers are subject to change.
Click here to link to the digital copy of the Offering Memorandum: [https://docsend.com/view/z789cvrgjrueyicx]
We will share the Operating Agreement for Gelt Irma Holdings, LLC in addition to the Subscription Agreement and funding instructions as soon as they become available.
The Gelt team looks forward to your participation in the opportunity.