Advertisement

New Tokenized Real Estate Investment Is Targeting A 14.9% IRR

A new tokenized real estate investment will be available soon as blockchain technology continues to expand in the real estate crowdfunding industry.

The latest offering is for The Madison, a 180-unit garden-style multifamily property 30 minutes outside downtown Houston in the Bear Creek suburb. The complex features multiple amenities, including a swimming pool and sundeck, fitness and business centers, a playground and an outdoor cafe seating area, among others.

The offering is available for pledges on the HoneyBricks investment platform where the offering will soon go live.

The deal sponsor sees significant upside with this investment. Though the occupancy rate is currently 100%, within each of the units are outdated classic interiors causing lease rates to fall behind the market. The project operator, Lone Star Capital, will be looking to capitalize on the value-add potential of the property by implementing a substantial renovation program.

ADVERTISEMENT

Every unit on the property will receive interior upgrades including quartz countertops, black appliances, tile backsplashes, washer and dryer units, lighting fixtures and cabinets. Each unit will also receive smart-home locks and climate-control panels. Additionally, 65 carports will be added to the property. With these implemented upgrades, Lone Star Capital projects an average rent premium of $187, taking rents from $1,015 to $1,202 over a 24-month period.

  • Minimum Investment: $1,000

  • Target internal rate of return (IRR): 14.9%

  • Target equity multiple: 1.5x

  • Target cash yield: 4.1%

  • Target investment term: three Years

The owner and operator of the offering is Lone Star Capital, a New-York based real estate company that deals exclusively in Texas property. One of the fastest-growing real estate investment firms, Lone Star has extensive experience in the multifamily value-add sector of Texas real estate.

Since the firm’s inception in 2018, the company has had over $350 million in acquisitions and 30%-plus returns across its nearly 3,000 owned units. Currently under management are six multifamily properties consisting of 1,650 units, including the Timberwalk Apartments next door to The Madison.

Learn more about HoneyBricks’ offerings or browse other passive real estate investment opportunities on Benzinga’s Real Estate Offering Screener. 

 

Photo source: Madison at Bear Creek website

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.