What We Love About This Project
Out of the gate, this investment opportunity should provide steady cashflow. Financials have been trending upwards, despite COVID-19, which signifies the strength of the market
- All-in cost basis is ~$15k+ per door LOWER than comparables
This opportunity is in a highly desirable area of north Macon with proximity to several major employment centers
- Cherry Tree Hill is a property with a tremendous framework to build upon and improve
- The value-add plan will consist of best-in-class amenity upgrades and interior renovations such as installing new appliances, flooring, and fixtures
- We will be performing a cost segregation analysis within year one
Inspiration image. Subject to change.
Tour The Property
Cherry Tree Hill is a 152-unit, class B- garden style apartment community completed in 1983. It is situated on 12.66 acres, offering 1- and 2-bedroom units.
Offering Details At A Glance
Projected Investor Returns
Leverage our vast experience, financial sponsorship strength, and capital aggregation to invest in otherwise unobtainable, high-value apartments with high returns.
Enjoy the potential for tax advantages such as depreciation, accelerated depreciation/cost segregation, passive income tax treatment, IRA investing, and death tax benefit.
Through the life cycle of the syndication, rental income from the property pays down debt service. Upon the sale of the property principal reductions will be returned to investors.
Limited Partners (LPs) are passive investors want to put their money to work by investing in safe, cash flowing assets, but may not have the time, expertise, or desire to buy an apartment community by themselves.
Regardless of the economy, people still need a place to live. Rental properties have done historically well in past recessions.
The investment is protected by real estate, a tangible asset
Georgia, Land of Opportunity
24,000+ jobs were created across all regions of GA by economic development projects during the first three quarters of fiscal year 2021 totaling more than $8.43 billion in new investments, representing a 67% increase in new investments compared to the first nine months of the previous fiscal year.
Companies access global markets through seamless air, sea, rail, and highway networks, including 4th largest and fastest growing container seaport in North America and the busiest, most efficient passenger airport in the world.
#1 State in U.S. for business (CNBC, Site Selection, and Area Development)
#1 Best State for workforce in the U.S. (CNBC)
#1 Labor climate in the U.S. (Area Development)
#2 Infrastructure and global access in the U.S. (Area Development)
GA’s workforce of 6 million+ is constantly refreshed by growing population along with 90,000 graduates from 80 colleges.
Frequently Asked Questions
A syndication is simply a pooling of resources to invest in something as a group.
A real estate syndication allows passive investors (known as “Limited Partners” or “LPs”) to invest in a project that is larger than they would be able to purchase as individuals.
Passive investors don’t do any of the work to manage the project. Deal sponsors (also known as the “General Partners” or “GPs”) are the ones dealing with the day-to-day operations of the property. They are the boots on the ground. Our sponsors have decades of combined experience and run the project, end-to-end.
As a passive investor, you invest your money, then sit back and start receiving returns. You reap the financial benefits of real estate investment without the time commitment and hard work. – no need to worry about tenants, termites, or toilets. Our team takes care of all that and provide you regular updates as the project progresses.
Most projects plan for a 5-year hold, so you should plan to have your money in the investment for at least 5 years. During this time, you will receive regular cashflow returns, but your initial investment cannot be withdrawn.
That being said, we know that 5 years can be a long time, and life happens. If a major life event happens and you need out, we will do everything in our power to help you get out of the investment, including buying out your shares ourselves if need be.
While exact percentages will vary from one investment to the next, you will receive the same TYPES of returns across the board. Cash on cash returns are paid out throughout the lifecycle of each investment. You will also receive a portion of the profits from the sale of the asset at the end of the project.
You will be a limited liability owner of the property which comes with all the benefits like depreciation and cash flow, meaning the property is owned by a “Property LLC” for which that property is the only asset (reduces liability). You in turn will be a direct shareholder in this Property LLC so in essence you are part owner of the company that owns the property. This allows for a direct flow-through of cash flow, depreciation, and allows you upon sale of the asset to realize long term capital gains.
An accredited investor is someone who meets certain requirements regarding income and net worth, based on Securities and Exchange Commission (SEC) regulations. This is so that the SEC can ensure proper protection for all investors.
To be an accredited investor, you must satisfy at least one of the following:
1. Have an annual income of $200,000, or $300,000 for joint income, for each of the last two years, with expectations of earning the same or higher income this year.
2. Have a net worth exceeding $1 million, not counting your primary home
Yes. You do not have to be an accredited investor, but accredited investors are welcome.
Although multifamily properties are among the safest commercial real estate investments you can make, there is always a risk in any investment. To mitigate risk, our strategy is to buy apartments “below market” and hire the very best property management team available to increase income and reduce expenses. Since strategies are pretty straightforward, success is often determined by the competence of the team executing the plan. Our team manages the property manager, making sure execution is being performed as we intended.
Commercial real estate assets like apartment buildings and self-storage operate independently of the stock market. In fact, they tend to fare better in recessions, because more people tend to downsize. They also tend to be safer investments than single family homes because if one tenant moves out, you still have the others to pay down the mortgage.
We take significant measures to mitigate risk in every project, and when something unexpected happens, we let you know immediately and work closely with our team to resolve the issues as quickly as possible.
Our #1 priority is always to protect your investment, first and foremost.
The exit strategy for these investments is generally five years, although it may vary depending on the property and specific business plan being executed. During the holding period, quarterly or monthly payouts (“mailbox money”) are sent to investors, as the project proceeds on-plan.
Changing economic circumstances can also affect the original hold time, so passive investors do need to place a certain level of trust in the management team to make decisions that will maximize all investor’s returns. Original timelines will be adhered to as much as is possible to protect everybody’s investment.
We won’t want to sell in a down market. The goal would be to continue to pay the preferred return minimum and hold on until the market is healthier to achieve a better price at sale. Class B/C value add properties tend to hold up much better in downturns because folks need a place to stay and rents are more in line with the market / service economy demographic that is typically still employed in downturns versus the class A renter making $100K/yr. whose jobs are more at risk.
Typically, 8% is what I see most. This favors the limited partner. It essentially means that the first 8% return on an investment (distributions from cash flow or capital events such as refi proceeds or sale) will go entirely to the limited partner, nothing to the general partners. This is not a guarantee but the next best thing.
No. By their nature, real estate investments have a longer-term time horizon than that of liquid stocks or bonds.
Funds can be wired directly into the subscription account of the fund or sent by check. The funds are typically held in an escrow account in the name of the LLC until the closing of the property. Madison Investing, LLC never takes possession of your funds.
Similar to a 1099, a K-1 form is an accounting of the tax income for the year. Each investor receives one per investment. K-1 forms are most commonly used in partnerships and in real estate ownership.
The split is investment returns that go to the investors in the portion of the split. So, if the split is 70% to the limited partner and 30% to the general partner, after the preferred return is paid (if there is one), then the partners split all other proceeds from distributions or capital events 70/30. That split can change if a certain hurdle (or waterfall) is achieved. Example: A split could be 70/30 then go to 50/50 once the IRR hits say 18%. Any returns higher than 18%, will then be split 50/50 LP/GP. That is a waterfall.
Yes. You can click on the “webinar” button to sign up for our next live webinar and the replay.
Click on the “Soft Reserve” button below and register with our investor portal. You will gain instant access to our full investment summary and other deal documents.
Please note that the soft reserve serves to hold a spot for you in the deal but does not lock you in. If you decide later that you’ve had a change of heart, there’s no penalty for backing out. However, if you decide to increase your investment down the road, just know that there may or may not be room for that additional amount. So, if in doubt, reserve an amount now, take time to review all the materials, then adjust down later as needed.
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.