U.S. Residential Real Estate Portfoli - High-Performing Portfolio Acquisition
Investment Summary:We offer a unique opportunity to acquire a high-performing residential
portfolio of 65 buildings, featuring a total of 1,680 units that have been upgraded to Class A
standards. Located in strategic areas of Chicago’s South and West sides, this investment is
predominantly secured by US Government subsidies, covering 80% of the rental income.
Investment Structure: U.S. LLC
Investment Sought: $186,500,000 + 3% buyer’s fee
Key Highlights:
Renovations: $15,000 per unit has been invested in significant upgrades to modernize properties to Class A standards.
Occupancy: Maintains a high occupancy rate of 97%, largely supported by the CHA subsidy
program which provides stability during economic fluctuations, including the recent COVID-19
pandemic.
Collection Rate: Demonstrates a strong collection rate of 94% with rent subsidies primarily
provided by HUD, ensuring timely and reliable payments.
Government Subsidies: With 80% of the income secured by government subsidies and rental
increases tied to the US inflation index, a predictable and stable revenue stream is guaranteed.
Financials:
Net Operating Income (NOI): $12.8 Million per year.
Current Debt: $110 Million, with an option to assume an existing loan featuring a favorable
3.75% fixed interest rate for the next seven years.
Equity Requirement: $76,500,000
Use of Capital: Funds will be employed to complete the acquisition of these fully renovated and
strategically located residential units.
Project Highlights:
Capital Deployed: Extensive investment in renovations aimed at raising living standards and
property value.
Robust Tenant Base: Benefitting from government-subsidized rent, ensuring minimal default
risks and stable cash flow.
Note: This investment provides an excellent opportunity to secure a substantial real estate
portfolio with government-backed income, making it an attractive proposition for long-term
investors seeking reliable returns.
