Cadence

A 260-home build-to-rent community in suburban Phoenix, offered as construction debt and LP equity.

Financial Highlights

Stabilised value $112.4M NOI $5.62M at a 5.0% cap

Land value $16.0M Entitled suburban parcel

Total dev cost $85.75M Land, build, finance

Interest $5.6M Financing over the build

Value created $26.7M 6.55% yield on cost vs 5.0% cap

Sources of Funds

Debt 60%

Equity 40%

Construction loan $51.45M

LP equity + GP co-invest $34.3M

Refinances to a $59.4M permanent loan at stabilisation, releasing about $8.0M back to equity.

The Ask

Loan application $51.45M Construction loan 60% LTC · refinances to a $59.4M permanent loan at 1.35x DSCR · first charge, completion guarantee, stabilisation test

Investment memorandum $34.0M LP equity About 16% net IRR · 1.95x equity multiple · 5.5% cash-on-cash · 8% preferred then a 70/30 split

Hold & exit $112.4M Stabilised value 5.0% cap on $5.62M NOI · quarterly distributions through a five-year hold