Hamilton Point Garden Park Apartments

Hamilton Point Garden Park Apartments

[This offering is fully subscribed. This is provided as an example of one of the offerings our affiliates have recommended to clients in the past.]

Description:

Hamilton Point's Garden Park Apartment DST is a 246-unit class-A property on 9.96 acres of land in Fayetteville, AR. Fayetteville is the 15th fastest growing metropolitan statistical area and was ranked 19th in the 2012 Forbes Magazine Best Places for Business. The complex includes a pool, tennis, basketball, and volleyball courts, grill, and a clubhouse with a business center, billiards, and coffee bar. The apartments underwent an extensive, $7.3 million renovation prior to being offered to investors. It was acquired for 40% below replacement cost---and less than the previous owner's mortgage amount. The apartments were leased up to 97% in a market with a vacancy rate of 2%. The total capitalization was $14,950,000, made up of a loan in the amount of $9,150,000 and equity in the amount of $5,800,000 (61.2% LTV).


Tax-Benefits:

The investment was structured as a Delaware Statutory Trust (DST) designed to qualify as a replacement property in a 1031 exchange. Depending on each investor's tax basis at the time of invesment, many investors were also able to utilize depreciation to defer the taxes on a portion of the income derived from the investment.


Goals:

  1. Consistent cash flow, collateralized by value-oriented multifamily asset.
  2. Capital gains tax deferral as a 1031 replacement property option.
  3. An option for income-tax deferral via depreciation.
  4. Potential long-term upside, either due to a sale or to increasing rental income.


Status:

Investment performance has been consistent with projections up to the present, providing steady cash flow for 1031 and cash investors. Individual investors in the program have been able to avail themselves of the income-tax deferral gained through the depreciation allowed for commercial real estate.


Cash Flow:

Year2013
Projected7%
Actual7%
Variance0.00%


[Past performance does not guarantee future results. This offering’s results are not necessarily indicative of future recommended offerings. Real Estate Investing is subject to risk, including, but not limited to potential disruptions in cash flow, loss of principal, illiquidity, etc.]


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