Inland Private Capital Corporation believes that an investment in the Parent Trust offers the following benefits:
- Strong locations in two large Florida metropolitan areas: Jacksonville and Tampa
- The Properties provide easy access to employment centers and major interstates
- Value-add potential with planned unit upgrades at both Properties to grow rental income
- Inland has extensive property management expertise
- Experience in all aspects of acquiring, owning, managing and financing multifamily properties
- Each Property is, or will be, financed with a separate loan with no cross-collateralization
- Each Loan has, or will have, a 10-year term, with fixed interest rates and amortizing principal
The market dynamics are anticipated to be sustainable throughout the hold period, providing the Property Manager the opportunity to maintain or increase occupancy and to increase rental rates at the Properties. In conjunction with rental growth, the operational strategy includes monitoring and controlling expenses, and utilizing reserves effectively. To maximize property performance, a state-of-the-art computerized revenue management program will be instituted to analyze market and submarket data and establish optimal unit pricing based on a number of factors including inventory, days on market, move-in date and location.
In addition, the Property Manager intends to introduce, and/or monitor the recovery of, other income and fees, such as utility costs, trash removal fees, administrative fees, application fees and pet rent. In an effort to retain residents, the Property Manager intends to implement a lease management system that seeks to limit the number of monthly lease expirations to approximately 10 percent of the Apartment Units. Programs will also be put in place to enhance the online rating scores on apartment rental sites as well as multiple search engines, which are critical in today’s technology-driven market.
Regular meetings will be held between the Asset Managers and Property Managers to review performance, discuss new leasing activity, and improve tenant retention as well as other topics. The Property Manager also expects to host regular Resident functions to foster a sense of community and help to increase tenant retention.
An annual property tax review and appeal program will be put in place and annual property insurance reviews will be conducted. Finally, the Asset Managers will leverage economies of scale in order to provide the most cost effective pricing structure on contractor and vendor services.
Each Property is, or will be, separately financed with a first mortgage loan (each, a Loan and together, the Loans), as described below. Investors should note that the financing terms for the Riverview Loan have not been finalized as of the date of the Memorandum, and remain subject to change. The Parent Trust is offering (the Offering) to sell to qualified, accredited investors pursuant to this Memorandum, 100 percent of the beneficial interests in the Parent Trust. The Offering is designed for accredited investors seeking to participate in a tax-deferred exchange as well as those seeking a quality, multiple-owner real estate investment. Only accredited investors may purchase interests in this Offering. For more information, see “Summary of the Offering” and “The Offering” in the Memorandum.