Investment Overview
The Sponsors are seeking $3,900,000 as a Limited Partner (“LP”) equity investment in the 101-unit multifamily portfolio. For this, the LP investor is projected to receive an 22% Internal Rate of Return (“IRR”) which equates to a 2.04x Multiple on Invested Capital (“MOIC”).
Value Creation & Market Dynamics
Aries Capital Investments with 11 Capital Partners and Blue Lion Equity Partners will acquire a 101-unit multifamily portfolio in the Longview/Kilgore, East Texas market—a region known for its stability, blue-collar demand, and affordable rents. Secured at $5.6 million ($55,500 per unit, $71 PSF), this off-market opportunity has built in equity with 28% discount to comparable sales. The portfolio offers a rare, full-property value-add opportunity with significant upside and robust downside protection.
Value Creation & Market Dynamics
- Comprehensive Renovations: $1.9M+ allocated for targeted upgrades, including $15,000–$20,000 per unit in interior and exterior enhancements, designed to drive immediate rent growth and operational efficiency.
- Rent Growth: In-place rents are poised for significant increases post-renovation, leveraging the submarket’s affordability gap and strong demand from local employers.
- Downside Protection: Conservative underwriting, a low-cost basis, and prudent leverage (LTV in line with market standards) provide strong risk mitigation and resilience across cycles.
- Market Strength: East Texas’ diversified employment base, proximity to major distribution hubs, and limited new supply support long-term rental stability.
Financial Performance
- Acquisition Price: $5,600,000
- Equity Raised: $3,900,000
- Minimum Investment: $100,000 (accredited investors)
- IRR: 22%
- Equity Multiple: 2.04x
- Avg. Annual Cash Flow: 9.04%+
- Year 1 Cash Flow: 5%, increasing to 12%+ by Year 4
- Day 1 Working Capital: $380,000+ earmarked for downside protection
- Preferred Return: 8%
- Hold Period: 4 years
- LP/GP Split: 70/30
Why It Matters
This East Texas portfolio exemplifies ACI’s ability to identify and execute on institutional-quality, off-market opportunities with substantial value-add potential. By acquiring well-located assets at a steep discount, deploying a proven renovation strategy, and maintaining conservative financial controls, we deliver strong, risk-adjusted returns for our investors—even in a shifting market environment.
Looking Ahead
Our investment approach is purpose-built for accounting and compliance professionals seeking predictable passive income, portfolio diversification, and tax efficiency. As part of the CPA Wealth Collective, you gain priority access to future offerings, exclusive market intelligence, and a network of high-caliber peers.
Investments are open to accredited investors only. Past performance is not indicative of future results. Please consult your advisor before investing.