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Type: Equity, Direct

Edgewater Village Apartments

Investment Summary

    • Closing scheduled for April 23, 2026.
    • Equity Raise: ~$6.9MM
    • Target IRR: ~26.3%
    • Target Equity Multiple: ~2.6x
    • Hold Period: 5 Years

Overview

Edgewater Village Apartments (“Edgewater” or the “Property”) is a 483-unit value-add multifamily community located in Greensboro, North Carolina. The investment represents an opportunity to acquire a well-located, institutionally scaled asset at a significant discount to replacement cost, with multiple levers to drive NOI growth.

The business plan focuses on operational improvement, capturing loss-to-lease, and executing targeted capital upgrades on an already improved asset.

  • Equity Raise: ~$6.9MM (Sponsor Equity: $1.66M)
  • Strategic Partner Equity: $8.0MM commitment
  • Total Capitalization: ~$47.3MM
  • Loan-to-Cost: 67%
  • Target IRR: ~26.3%
  • Target Equity Multiple: ~2.6x
  • Hold Period: 5 Years

The Opportunity

Edgewater presents a compelling opportunity to acquire a cash-flowing asset with embedded upside driven by both operational inefficiencies and mark-to-market rent potential.

Key Highlights

1. Basis at a Deep Discount to Replacement Cost
The Property is being acquired at approximately 42% of estimated replacement cost, providing strong downside protection and attractive long-term positioning.

2. Operational Turnaround Opportunity
The asset has historically been managed by an out-of-state operator, resulting in underperformance relative to comparable assets in the submarket. Transitioning to a local operator platform is expected to improve leasing, expense management, and tenant experience.

3. Proven Demand with Recent Occupancy Recovery
Occupancy declined into the low-80% range due to management issues but has since rebounded to approximately 92%, demonstrating strong underlying demand.

4. Mark-to-Market Rent Upside
In-place rents are approximately $35 below recent leasing levels, providing near-term revenue growth as leases roll.

5. Significant Prior Capital Investment
The current owner has invested $12MM+ in renovations, materially reducing execution risk and providing a strong physical foundation.

6. Defined Value-Add Program
The business plan includes approximately $6.3MM–$6.5MM of targeted CapEx (~$12.5K/unit) focused on interior upgrades, efficiency improvements, and property repositioning.

Business Plan

The strategy focuses on “value creation through the basics”—driving revenue and reducing expenses through disciplined execution.

Revenue Growth Initiatives

  • Capture loss-to-lease (~$35/unit/month)
  • Improve leasing velocity and pricing strategy
  • Reposition asset branding and marketing
  • Complete remaining interior unit upgrades

Expense Reduction Initiatives

  • LED lighting retrofit to reduce electricity costs
  • Low-flow plumbing installation to reduce water usage
  • Repair and optimize water submetering system
  • Improve water cost recovery (currently ~45% vs. ~90% portfolio benchmark)

Property Overview

  • Property: Edgewater Village Apartments
  • Location: Greensboro, NC
  • Units: 483
  • Year Built / Renovated: 1974 / 2024
  • Occupancy: ~91.9%
  • Average Unit Size: ~844 SF

The Property offers a diversified unit mix with a weighted average rent of approximately $983/month, with clear upside through renovation and operational improvements.

Location & Market Dynamics

Edgewater is located near the Piedmont Triad International Airport, one of the region’s primary economic drivers and a hub for aerospace, logistics, and advanced manufacturing.

Key Demand Drivers

  • FedEx Mid-Atlantic Hub
  • HondaJet
  • HAECO
  • Boom Supersonic (planned ~2,400 jobs)
  • JetZero (planned large-scale employment)
  • Proctor & Gamble
  • Syngenta

The broader Greensboro market benefits from:

  • Strategic location along I-40 and I-85 corridors
  • Continued job growth in manufacturing and logistics
  • Strong in-migration trends across North Carolina

Financial Overview

Capitalization

  • Equity Raise: ~$6.9MM (Sponsor Equity: $1.66M)
  • Strategic Partner Equity: $8.0MM commitment
  • Total Capitalization: ~$47.3MM
  • Loan-to-Cost: 67%

Returns Profile

  • Target IRR: ~26.3%
  • Equity Multiple: ~2.6x
  • Exit Year: Year 5
  • Exit Cap Rate: ~5.75%

Going-In Metrics

  • T-12 Cap Rate: ~7.24%
  • Year 1 Cap Rate: ~6.03%

Capital Structure & Terms

  • Minimum Investment: $50,000
  • Structure: Special Purpose Entity (SPE)
  • Investor Class: Class A (Limited Partners)

Distribution Waterfall

  • Return of capital + 10% preferred return
  • 75/25 split until 14% IRR
  • 60/40 split thereafter

Transaction Timeline

  • Subscriptions: Completed by April 23rd
  • Capital Call: April 27th (82% of commitment amount)

Documents

Investor Packet: