IncomePlus Fund

Ashley Oaks

San Antonio,

TX

Total Required Equity
$4,500,000
Asset Type
Multifamily
Investment Objective
Income
IRR
12.50%
Hold Period
3+ Years
Investment Date
11/10/2020

Investment Summary

Ashley Oaks is a 462-unit, Class B multifamily commercial real estate property in San Antonio, TX. Our investment in Ashley Oaks is preferred equity financing that will occupy the capital stack of the property from 74% to 84%, meaning we have a 16% cushion to loss and get paid back before true equity holders. The asset is currently owned by Silver Point Group, who has completed common area renovations across the entire property, as well as three different tiers of in unit renovations, with most units having some level of work completed. The business plan includes standardizing the renovation scope and completing the renovations across the property.

Key Deal Points

The sponsor invested more than $9.6 million of common equity ahead of our $4.5 million investment, a nearly 18% buffer to the expected cost basis, and a discount of more than 50% to today's estimated replacement cost.

This investment provides the opportunity for a 6.0% current pay and 6.5% accrual rate throughout the hold period. Approximately 45% of the investment returns will be achieved via cash from operations.

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