deck

2. Pitch Deck (15 slides)

Slide 1 - Cover (LAVisions layout)layout: title_hero · 16:9
Cadence
A 260-home build-to-rent community in suburban Phoenix.
Slide 2 - Problem (LAVisions layout)layout: problem_split · 16:9
the problem
A widening gap in family-sized rental
01
Households priced out of ownership
Home prices and mortgage rates in metro Phoenix have moved past what most working households can carry, so more of them rent, and rent for longer.
02
Apartments do not fit families
Most new supply is stacked garden apartments. Families want a yard, a garage and a front door, and little of that gets built for rent.
03
Older rentals show their age
The scattered single-family rentals that do exist are aging, owned one house at a time, with no shared amenity and no professional management.
$2,925
Blended average rent across the 260 homes, below the monthly cost of owning a comparable house in the same submarket.
Rent versus own
Slide 3 - Solution (LAVisions layout)layout: solution_image_left · 16:9
the solution
A managed community, not scattered houses
Cadence is 260 detached cottages and townhomes with yards and garages, built for rent around a shared pool and clubhouse and run by one operator. A single site lets residents rent a house without buying one, with amenity and service that no one-off landlord can match.
Slide 4 - Product (LAVisions layout)layout: product_split · 16:9
the product
One community, four home types
01
1-bed cottages
70 homes at 720 square feet, renting at $2,095 a month. The entry price point that fills first and holds occupancy through the cycle.
02
2-bed cottages
90 homes at 1,050 square feet, renting at $2,810 a month. The core of the community and the largest single share of the rent roll.
03
Townhomes and detached
78 three-bed townhomes at $3,500 and 22 detached homes at $3,995. The premium tier for families that want more room.
Blended rent runs about $2,925 a month. Parking, pet rent and lease fees add other income across all 260 homes.
Slide 5 - How it Works (LAVisions layout)layout: how_it_works · 16:9
Develop to core
From groundbreak to stabilised income
Step 01
Build
Horizontal work first, then vertical construction in phases at 60 percent loan to cost. Total development cost is $85.75M.
Step 02
Deliver
Homes come online as each block finishes. Residents move in while later phases are still under construction.
Step 03
Lease up
Marketing and pre-leasing carry the community to about 94 percent occupancy. The rent roll builds toward stabilised NOI of $5.62M.
Step 04
Refinance
At stabilisation a $59.4M permanent loan retires the construction debt and returns about $8.0M to equity, sized to a 1.35x DSCR.
Step 05
Hold and exit
The community pays quarterly distributions through the hold, then sells at a 5.0 percent cap in year five near $112.4M.
One sequence, from raw land to core income, with debt sized down at every step.
Slide 6 - Value Proposition (LAVisions layout)layout: value_prop · 16:9
The alternatives
How families rent in the submarket today
Current Solutions
Garden apartments
  • Plentiful new supply
  • Stacked, no yard
  • Shared walls, no garage
  • Not built for families
For-sale houses
  • Space and a yard
  • Down payment out of reach
  • Mortgage above rent
  • Priced out for now
Scattered rentals
  • A whole house to rent
  • One-off landlords
  • No shared amenity
  • Aging, no management
  • House rental, no purchase
  • Yards and garages
  • Pool, clubhouse, amenity
  • One professional operator
Each alternative gives up something families want. Cadence pairs a house and a yard with amenity and management. It fills the gap the others leave open.
Slide 7 - Features (LAVisions layout)layout: product_split · 16:9
The community
What residents get for the rent
01
Private yards and garages
Every home has its own entrance, outdoor space and parking. The features a renter cannot get from a stacked apartment.
02
Amenity core
A central pool and clubhouse anchor the community. Shared amenity supports rents and keeps residents renewing.
03
Four home types
Cottages, townhomes and detached homes from 720 to 1,750 square feet. Rents run $2,095 to $3,995 a month.
04
Other income
Parking, pet rent, and application and lease fees add income beyond base rent across all 260 homes.
05
Professional management
One operator runs leasing, maintenance and renewals across the whole community, which scattered single-home rentals cannot do.
Why here, why now
Phoenix demand is structural, not cyclical
01
People keep moving to the Sun Belt
Phoenix keeps drawing residents and employers from higher-cost states. Job and population growth feed steady household formation.
02
Renting for longer
Higher home prices and mortgage rates keep would-be buyers renting. Demand for a house without a purchase keeps building.
03
Institutions want core income
Stabilised build-to-rent has become a core holding for institutional owners. Buyers stay active for well-run communities at a 5.0 percent cap.
Renter demand
Deep demand for family-sized rental
TAMSAMSOM
$16BMetro Phoenix annual rent
Roughly 700,000 renter households across the metro
The full pool of renter demand across greater Phoenix, growing with in-migration and new jobs each year.
$2.4BFamily-sized rental
Detached and townhome rentals in the target submarkets
The slice that wants a yard and a garage. The most undersupplied part of the market and the fastest growing.
$9.49MCadence gross income
260 homes at a blended $2,925 a month, plus other income
Stabilised gross income of $9.49M, less vacancy and operating cost, leaves NOI of $5.62M.
Slide 9 - Business Model (LAVisions layout)layout: business_model · 16:9
business model
Yield on cost above the exit cap
Main income
Income on cost
260 homes produce stabilised NOI of $5.62M on total cost of $85.75M. That is a 6.55 percent yield on cost, held for income.
Unit economics
The development spread
Building to a 6.55 percent yield and valuing at a 5.0 percent exit cap is a 155 basis point spread. That gap is the value the development creates.
Slide 10 - Go To Market (LAVisions layout)layout: product_split · 16:9
Lease-up and operations
Fill the community and keep it full
01
Pre-leasing
Leasing opens before the first homes deliver. Early demand carries occupancy up as each phase comes online.
02
Marketing
Local search, listing sites and an on-site leasing team bring renters to the community at a steady cost per lease.
03
Property management
One operator handles leasing, maintenance and rent collection across all 260 homes, holding opex near 37 percent of income.
04
Retention and renewals
Amenity, service and a full community keep residents renewing. A renewal costs far less than filling a vacant home.
05
Ancillary income
Parking, pets, and application and lease fees add income on top of base rent across the community.
Slide 11 - Team (LAVisions layout)layout: team_grid · 16:9
The team
Builders and operators, under one roof
Daniel Reyes
Managing Partner
Twenty years developing rental housing across the Sun Belt. Has taken more than 4,000 homes from land through stabilisation, and runs the capital stack from the construction loan to the permanent refinance.
4,000+ homes delivered 20+ years Sun Belt build-to-rent Land through stabilisation In-house operations Full development cycle
The wider team
  • Karen Whitfield · Partner, Finance
  • Miguel Santos · Head of Development
  • Alicia Nguyen · Head of Property Management
  • Robert Cole · Advisor, Capital Markets
  • Susan Park · Advisor, Legal
Slide 12 - Competitive Advantage (LAVisions layout)layout: competitive_matrix · 16:9
Positioning
What competing supply cannot match
The open quadrant is full amenity plus true house-style product
01
A single 260-home site at scale, entitled and under one operator. Hard to assemble again nearby.
02
Detached and townhome product with yards and garages that garden apartments cannot offer.
03
An amenity core and professional management that scattered single-home rentals cannot provide.
04
Built new to a 6.55 percent yield on cost, above where stabilised communities trade today.
Amenity and management
House-style product
Garden apartments
Class A apartments
Scattered rentals
Cadence
Slide 13 - Roadmap (LAVisions layout)layout: roadmap_3phase · 16:9
Development plan
Five years, develop to core
Year 0 to 2
Phase 1
Build and deliver
Close land and construction loan
Horizontal work, streets and utilities
Vertical construction in phases
First homes delivered, leasing opens
Total development cost $85.75M
Year 2 to 3
Phase 2
Lease-up and refinance
Lease up to about 94 percent occupancy
Reach stabilised NOI of $5.62M
Refinance to a $59.4M permanent loan
Return about $8.0M to LP equity
Begin quarterly distributions
Year 3 to 5
Phase 3
Hold and exit
Stabilised income, full occupancy
Quarterly distributions at 5.5 percent
DSCR held at 1.35x
Sell at a 5.0 percent cap
Exit value about $112.4M
Slide 14 - Forecast (LAVisions layout)layout: forecast_kpi_chart · 16:9
Stabilised cashflow
The stabilised picture
Stabilised NOI$5.62Mat stabilisation
Yield on Cost6.55%vs 5.0% exit cap
Cash-on-Cash5.5%stabilised yield
DSCR1.35x1.35x cover
NOI stabilises at $5.62M on total cost of $85.75M, a 6.55 percent yield on cost. After the permanent loan, the community pays a 5.5 percent cash-on-cash return at a 1.35x DSCR, and values near $112.4M at a 5.0 percent cap.
Slide 15 - Ask (LAVisions layout)layout: ask_kpi_charts · 16:9
The ask
$51.45M of construction debt and $34.0M of LP equity
The Ask$51.45M + $34.0MConstruction loan at 60% LTC, plus LP equity
Hold5 yearsDevelop, stabilise, hold, exit
Income fromYear 3Stabilised income, about 16% LP net IRR
Use of funds · %
Cost allocation