IncomePlus Fund

Star Metals

Atlanta,

GA

Total Required Equity
$6,356,212
Asset type
Multifamily
Investment Objective
Income
IRR
13%
Hold Period
2.8 Years
Investment Date
1/18/2019

Investment Summary

Star Metals is a multifamily development in the West Midtown submarket of Atlanta, GA. The property will feature 409 Class A apartment units and 16,200 square feet of ground-floor retail space. The development is expected to be completed in 2021. Origin’s investment in Star Metals is preferred equity financing that will occupy the capital stack of the property from 68-74%, meaning we have a 26% cushion to loss and get paid back before true equity holders.

Key Deal Points

The preferred equity investment has an annualized accrual interest rate of 15%.

When the Sponsor refinances the property upon completion of construction, the repayment priority will start with the senior construction loan paid in full, then our preferred equity accrued interest paid in full and, finally, residual cash flow will go to the Sponsor equity holder.

The preferred equity investment will occupy the capital stack from 68% to 74%, sitting behind $88 million of senior bank financing and ahead of $34 million of equity provided by the sponsor, The Allen Morris Company.

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