Group Commercial Properties in BelmontVillage Drive Apartments in Belmont is a Tenant in Common project (TIC) offered as a commercial real estate project by MNM partners who specifically focus on projects in the Bay Area. The current offering is Village Drive Apartments in Belmont, California, consisting of 30 units, 6 three bedroom units, 14 two bedroom units and 10 one bedroom units in four buildings. The property is located in the heart of Belmont, in a prime location close to shopping and mass transit and in one of best school districts on the peninsula. The location attracts upscale tenants who enjoy earning above average salaries from local businesses. This is a value add opportunity, the property was currently grossly mismanaged. There was not a resident manager on site as required by law. There are currently 11 vacant units and rents from units occupied are under market. MNM currently owns a 65 unit apartment building in Belmont and we know the rental market and know the market need for apartments. The sponsor is confident per the Private Placement Memorandum that they can fill the building in 6 months, then increase rents on the balance of the tenants to create a good upside cash flow from the first year on. Even with the 6 months of vacancy, they anticipate distributing cash on cash in the first year just below 3%. Cash on cash will level out at 7% per year. They anticipate selling this property in 5 years at an annualized IRR of 18% to 20%, potentially doubling the investment. The sponsor has secured a non-recourse first loan of $4M approved with First Republic Bank of San Francisco and we are rasing $4.8M in equity to give us a 46% LTV which will allow us to cash flow and distribute profits to the co-owners quarterly. The minimum purchase of $138,000 buys a 2.9% interest in the property yielding 2.9% of the positive cash flow, 2.9% of the tax advantages and 2.9% of the upside upon sale of the property. Included in the equity raise are the closing costs, financing fees, LLC formation fees, organizational fees and a $200K reserve. The sponsor intends to remedy the termite work and remodel several kitchens in order to garner top rental income for the building. We anticipate a substantial amount of cash in reserve after these improvements to save or distribute to our co-owners if it makes sense. The building has new double pane windows recently installed along with a solar water heater we intend to make operational upon close. This project is for Accredited investors. For details, please contact, tel: 1-888 879 7158
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