New Investment Opportunity: Austin MSA - San Marcos 46 Acre - 311 Unit BTR Development with a Projected 25.25% AAR & 2.01X Multiple on a 4-Year Hold Period:
American Ventures is thrilled to announce our newest investment opportunity in the Austin MSA, adjacent to the investment mentioned above. We are raising $7.8MM in equity with an 8% preferred annual return, followed by a 60% - 40% profit split between investors and the sponsor. Approximately 65% of the profits from the deal will be distributed to investors. The Offering Memorandum is attached to this email. If you are interested in participating in this opportunity, please let us know or
SUBMIT YOUR SOFT RESERVE. We anticipate that this deal, like our last six closings, will be oversubscribed. We appreciate your timely commitment.
Offering Memorandum: Investment Deck
Business Plan:
American Ventures plans to acquire the site and, upon annexation into the City of San Marcos, will establish CD4 Zoning for approximately 39 acres. This will allow for about 311 Build-To-Rent lots. The remaining ~7 acres will be commercially zoned and put on the market for sale as an early capital event to supplement development costs. This strategy allows us to minimize the equity we raise, potentially offering a larger IRR to investors. Upon this acquisition, the Sponsor will have accumulated a total of 146 contiguous acres in the area. A combined 146-acre Urban Community located within, what the City of San Marcos is calling their “Second City Center”, gives American Ventures economies of scale. This allows for reduced project costs across the entire development in one of the top US real estate markets – the “Austin – San Antonio growth corridor”. The Sponsor has assembled a development team with extensive entitlement and development experience. The Civil Engineering and Architectural team, having worked with high-profile clients on developments such as this one, has been an integral part of the Sponsor's current 100-acre development, contiguous to this site. The predevelopment and planning phase is estimated to take 6-9 months. Development applications and permits expected to take an additional 9-12 months. Vertical construction will then proceed over the next 15-18 months. The projected exit for investors is at month 48.
Location Highlights:
For detailed information, please refer to page 12 of the Offering Memorandum. The location map includes clickable links to existing and future developments in this neighborhood. We have also provided all relevant links to some of the points mentioned below:
- A $267,000,000 studio project is currently under development, consisting of 820,000 sf. Construction is set to commence in April of this year. Hill Country Studios will house 12 soundstages, workshops, and a production office, focusing on virtual production. Filming could begin as early as this year, according to Austin American Statesman and with most of construction anticipated to be completed by 2025.
- The site boasts a prime location just off IH 35 and E McCarty Lane, blocks away from McCarty Commons, a 249-unit Class A apartment complex built and stabilized in 2020. The same developer has broken ground on another 249 Class A apartment complex – The Dylan.
- The Amazon SAT2 facility, employing ~4400 employees, is located blocks away from our land.
- Trammel Crow Company plans to build an industrial complex on a 105-acre site directly across the street from our land, with future R&D, warehouse, and distribution facilities.
- E McCarty Lane, also known as Loop 110, where our sites are located, is part of a master transportation corridor that TxDOT Austin has been developing with Hays County. TxDOT Austin and Hays County have officially broken ground on the FM 110 North Project. Upon completion in 2024, the project will create an east-side loop that serves as an alternative to I-35, enhancing the desirability of our property’s location.
- Hays County is among the fastest-growing counties in the US.
Investment Structure & Next Steps:
- Investors (LPs) will earn an 8.00% annualized return on the invested capital, there after 60% of profits. Projected returns for the investment are 25.25% AAR and a 2.01x equity multiple, net of fees & promote, over a 4-year investment period.
- Investors will be given the first right of refusal to participate in future horizontal and vertical development phases, should they choose to participate.
- A confidential offering memorandum is attached; we are raising approximately $7.8MM in equity for the initial land closing and entitlement phase.
- We aim to purchase the land on or before March 15, 2024.
- We are accepting direct investments from accredited investors, providing an opportunity to be part of this rare investment venture. This is a 506(b) offering.
- The initial round of commitments are due by February 21, 2024, with funds to be wired by March 8, 2024.
Our team is eager to set up a call to walk you through the deal in detail and answer any questions you may have. Please
SUBMIT YOUR SOFT RESERVE.
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