Equity Funding Launches for Portfolio Triangle

Clinton says EquityMultiple is excited to offer the opportunity to invest starting at $10,000.

HOUSTON—An equity funding round for a seven-property multifamily portfolio consisting of 293 apartments with a total of 257,675 square feet has been launched. The portfolio includes assets in a triangle between San Antonio, Dallas and Houston, as well as East Texas. With a projected annual return of 12% cash on cash, the portfolio is currently more than 93% occupied and already generating strong cash flow. The principals of the sponsor, Twin Eagle Capital , have extensive experience in acquiring and managing multifamily properties in smaller markets, and plan to optimize the Texas portfolio’s performance through rehabilitation, rebranding and re-leasing. During the sponsor’s five-year hold, the portfolio is projected to generate a net internal rate of return to investors of 19 to 22%. EquityMultiple , an online marketplace for real estate investing, has launched the funding round. It is the first multifamily deal on the EquityMultiple platform. “We decided to pursue this deal given the portfolio’s robust in-place cash flow, stabilized occupancy at over 93% and an ownership team with more than 40 years of combined real estate experience,” said Marious Sjulsen , chief investment officer of EquityMultiple. “Four out of the seven properties in this portfolio are strategically located between three of the fastest growing markets in Texas.” The three remaining properties are located in and around Texarkana, home to the largest retail cluster in the East Texas region, as well as the Red River Army Depot, which is responsible for more than 5,000 jobs in the area. Four out of the seven properties have been renovated within the past three years. Charles Clinton , CEO of EquityMultiple tells GlobeSt.com: “Our goal is to provide individual investors with a range of real investment opportunities in compelling markets across the country. Our goal is to facilitate diversification by offering a range of project types, deal structures and risk profiles. This multifamily portfolio offers strong current cash flow driven by high occupancy and an unusually high going-in cap rate for a multifamily deal. With immediate double digit cash-on-cash returns and upside based on the business plan we’re excited to offer investors the opportunity to invest starting at $10,000.” EquityMultiple is led by Clinton, a real estate attorney who worked on major transactions for clients such as Blackstone and KKR , and Sjulsen, who previously worked in real estate private equity and development. Mission Capital executives serve on the board and as advisers to the firm. “We believe in the stability of multifamily and have seen significant interest in the asset class from investors,” said Clinton. “Even in many smaller markets, rental housing is in strong demand.”