Altitude Residential Portfolio
Portfolio Financials
| Price | $52,749,587 | AVG Occupancy | 98.86% |
| NOI | $3,051,060 | Cap rate | 5.78% |
| Min. investment | $25,000 | Max. investment | $52,749,587 |
| Start date | 24 Aug, 2020 | Deadline | 24 Jan, 2021 |
| Soft Cap | $3,000,000 | Hard Cap | $52,749,587 |
Altitude Residential Series, LLC is offering a Multifamily Portfolio. It allows qualified individuals to invest in multimillion-dollar residential buildings without breaking the bank. Investors will receive tokens (digital shares) that represent fractional ownership of the portfolio and gain dividends based on the cash generated by the properties.
Altitude Residential will acquire real estate listed in the next section upon a successful capital raise. It will start executing purchase agreements one month after the soft cap of $3,000,000 is reached. If the full amount ($52,749,587) is raised before the deadline, the offering will be closed.Altitude Residential reserves the right to replace any property showcased in this portfolio with a similar one if it becomes unavailable during the fund raise.
Portfolio
- Location: Dekalb, IL
- Year built: 1962-1987
- Year renovated: 2014-2019
- Lot size (acres): 3.69
- Buildings: 7
- Units: 70
- Buildings size: 89,904 SF
- Occupancy: 100%
- Cap rate: 6.82%
- Opportunity Zone: yes
- All apartments and all town homes units are leased for the 2019/20 season. These are professionally maintained buildings with a great rental income, and a great rental history.They are located close to Northern Illinois University. All buildings feature on-site parking spaces and have been renovated from 2014 to 2019. The upgrades feature security systems, new floors, furniture, freshly painted exterior, roofing, heaters, air conditioning and more.
- Location: Bend, OR
- Year built: 2019
- Lot size (acres): 1.3
- Buildings: 6
- Units: 20
- Buildings size: 29,820 SF
- Occupancy: 100%
- Cap rate: 4.71%
- These town home style apartments are beautifully designed with vaulted ceilings and laminated wood in main living area. These 3 bedroom 2.5 bath units boast a light and bright open floor plan featuring a nicely appointed kitchen with Alder cabinets and solid surface counters. stainless steel appliance suite, and a walk-in pantry All bedrooms are located upstairs. Each unit has a private two-car garage, patio, A/C, some unit shave gas fireplaces. Easy access to shopping,main post office and charming downtown Bend.
- Location: Fresno, CA
- Year built: 2015
- Lot size (acres): 1.34
- Buildings: 14
- Units: 54
- Buildings size: 75,000 SF
- Occupancy: 97%
- Cap rate: 5.68%
- Opportunity Zone: yes
- The property comprises 14 residential buildings located near major employers such as Regional Medical Center, US Courthouse,Fresno City and County Government Centers,Internal Revenue Services as well as Amazon and Distribution Centers. The buildings feature spacious one, two, and three-bedroom floor plans with an average size of 796 square feet. This project is subject to an RDA Agreement requiring 23 units to be rented to residents making at or below 120% of the Adjusted Median Income (AMI).
- Location: Chico, CA
- Year built: 2017
- Lot size (acres): 1.59
- Units: 32
- Buildings size: 35,000 SF
- Occupancy: 100%
- Cap rate: 5.41%
- Opportunity Zone: yes
- This premier property consists of 32 luxury units located near downtown Chico. Apartments feature granite counters, wood style plank flooring, stainless appliances and washer/dryers in each. Units have kitchens equipped with range, microwave, stove and refrigerator. Some units have pet rent or parking premiums. Rent renewals and new leases will increase scheduled rent effective 8/1/2020. A handful of units are limited by the City of Chico’s rent cap ordinance which is expiring 11/2020.
- Location: Stockton, CA
- Year built: 1970
- Year renovated: 2017
- Lot size (acres): 2.2
- Units: 64
- Buildings size: 44,790 SF
- Occupancy: 98%
- Cap rate: 5.28%
- Opportunity Zone: yes
- This is an apartment community located in a nice residential neighborhood in north Stockton. The property is a rent-restricted and reserved for residents whose income does not exceed 80% of AMI; 20% of the units are reserved for 50% AMI residents. This feature provides for up to 100% property tax abatement. Over the past two years, over a million dollars of capital improvements have been invested. Improvements include flooring, dual-pane windows, landscape,sidewalks,, all new roofs, gated access, and solar system installation.
- Location: Syracuse, NY
- Year built: 1965
- Lot size (acres): 1.07
- Buildings: 3
- Units: 135
- Buildings size: 78,009 SF
- Occupancy: 97%
- Cap rate: 6.95%
- Opportunity Zone: yes
- The property works equally well for student housing and for long-term stay. It has on-site fitness center and laundry facilities. Exterior entrance (majority) eliminates tenant interaction and increases tenant satisfaction and tenure. Each floor plan offers a unique look, including cream ceramic tile floors,modern oak cabinets, customized mini blind sand elegant mirrored accents. All units come standard with all basic utilities, including cable TV and internet. Covered parking is available for an additional fee, while ample open parking is accessible to all residents.
- Location: Houston, TX
- Year built: 2018
- Lot size (acres): 0.24
- Units: 6
- Buildings size: 13,284 SF
- Occupancy: 100%
- Cap rate: 6.15%
- The units are three-story with one room downstairs on the ground level; two rooms,kitchen and living area on the middle story;and an attic on the third story with roof access that acts as a patio. The property has very few common elements beyond the automatic gate,driveways and some landscaping. As a result,expenses are extremely low making this a high-NOI investment opportunity. The property is located in the Washington Avenue Coalition of Houston, one of the best places to live in Texas, according to rentometer.com
Statistics Summary
| Year Built | Year Renovated | Class | |
| Property 1 | 1962-1987 | 2014-2019 | B,C |
| Property 2 | 2019 | N/A | C |
| Property 3 | 2015 | N/A | A |
| Property 4 | 2017 | N/A | A |
| Property 5 | 1970 | 2017 | B |
| Property 6 | 1965 | N/A | C |
| Property 7 | 2018 | N/A | A |
| Average (portfolio) | 1994 | 2016 | B |
| Lot Size,AC | Building Size. SF | Units | |
| Property 1 | 3.69 | 89,904 | 70 |
| Property 2 | 1.3 | 29,820 | 20 |
| Property 3 | 1.34 | 75,000 | 54 |
| Property 4 | 1.59 | 35,000 | 32 |
| Property 5 | 2.2 | 44,790 | 64 |
| Property 6 | 1.07 | 78,009 | 135 |
| Property 7 | 0.24 | 13,284 | 6 |
| Total Average | 11.43 | 365,807 | 381 |
Financial Summary
| Price | NOI | Cap Rate | Occupancy | |
| Property 1 | $6,989,587 | $476,562 | 6.82% | 100% |
| Property 2 | $7,920,000 | $373,400 | 4.71% | 100% |
| Property 3 | $9,350,000 | $530,706 | 5.68% | 97% |
| Property 4 | $7,865,000 | $425,373 | 5.41% | 100% |
| Property 5 | $9,845,000 | $519,400 | 5.28% | 98% |
| Property 6 | $7,810,000 | $542,967 | 6.95% | 97% |
| Property 7 | $2,970,000 | $182,652 | 6.15% | 100% |
| Total/Average (portfolio) | $52,749,587 | $3,051,060 | 5.78% | 98.86% |
Financial Projections
Assuming NOI growth rate = 1.5%, inflation rate 2.53%, exit cap rate of 5.7%, and disposition at year 5.Management fees vary from property to property and are accounted for in the NOI calculation. 100% of the NOI will be distributed to investors.
Expected Performance Based on the financials presented on the previous page, this is what investors can expect
if they invest: $25,000
Increase in value: $2,329. Total dividends:$7,450.
If they invest $100,000
Increase in value: $9,317. Total dividends: $29,801.
Market Overview
According to Newmark Knight Frank, multifamily cap rates rose nationally to 5.47% in the first quarter of 2020. This increase was led by a 16 basis point increase in non-major market cap prates and a 9 basis point increase in major markets quarter-over-quarter. The cap rate of this portfolio is above the market average at 5.78%.
Both major and non-major markets saw price accelerate year-over-year, up 17.5% and 8.6% respectively. Compared with the fourth quarter of 2019, major market pricing increased 13.3 %while pricing in non-major markets declined. The national average price per unit fell 7.1% quarter-over-quarter to $175 thousand in the first quarter of 2020.
Over the last 12 months, annual effective rent growth remained flat at 3%, while quarterly rent growth rose 130 basis points to 0.5% in the first quarter of 2020 compared with the fourth quarter of 2019. Since the uncertainty from COVID-19 might limit rent growth, we assume a conservative 1.5% yearly NOI growth rate when calculating financial predictions for this portfolio.
Dividends and Ownership
Altitude Residential is offering fractional ownership of multifamily real estate in the US in the form of digital shares (tokens). Dividends are distributed to token holders every quarter in USD. Investors can also choose to receive dividends in stablecoins. The company offers a pure equity portfolio of stabilized income-producing real estate in the USA. This way investors can individually decide if they want to leverage their tokens for debt and higher ROI or keep it as is for lower risk.
The properties included in this portfolio represent the assets that Altitude Residential intends to buy upon successful capital raise. In case one or more of the properties become unavailable during the raise, Altitude Residential is responsible for finding an asset with comparable parameters (size, income,location, return, etc).
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Team and Partners
Altitude Residential Series, LLC is facilitating the deal. It will start acquiring the properties listed in this portfolio once the soft cap is raised. It is responsible for replacing any property that cannot be acquired with an equivalent. Altitude Residential will own 3% of this portfolio.
Altitude Residential will use the services of Bravo Capital Advisors for portfolio management. The latter will communicate with local property managers to collect rental fees and supervise asset maintenance.
REINNO is the technology provider for the offering. It created digital shares (tokens) that represent fractional ownership of this portfolio.
Bull Blockchain Law provides legal structure and advice for this deal.
For information regarding the escrow provider, please refer to the Purchase Agreement.
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DISCLAIMER
There are risks associated with investing in securities.Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods. The information contained in this file has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. This offering has been prepared by Altitude Residential Series, a series of Reinno Series, LLC (the Company). The Company excludes unequivocally all inferred or implied terms, conditions and warranties arising from this document and excludes all liability for loss and damages arising there from.
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. All potential buyers are advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.The investment opportunity referred to on this Site may not be suitable for all investors and they should seek professional investment advice before making a decision to invest in the offering. The offering is only available to accredited investors in the U.S. and abroad.To the extent that this offering contains any information regarding past performance, such information is not a reliable indicator of future performance and should not be relied upon as a basis for an investment decision. Past performance does not guarantee future performance and the value of investments and the income from them can fall as well as rise. No investment strategy is without risk and markets influence investment performance. Investment markets and conditions can change rapidly and investors may not get back the amount originally invested and may lose all of their investment.
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* Some equity offerings might not provide dividend payments and offer higher capital gains instead. Please check the offerings to understand their respective terms.