Weyland Apartments
Investment Summary
Total Amount Reserved: 5%
-
- Rising Rent Growth: Effective rents increased from $704 to $1,184 since 2018.
- Strong Market Fundamentals: Charlotte attracts young professionals and corporate relocations.
- Strategic Location & Expert Management: Near Uptown, airport, employment hubs; managed by Ginkgo Residential (2,800+ units within the submarket).
OVERVIEW
GinkgoVest is offering an opportunity to invest in the recapitalization of Weyland Apartments, a 200-unit multifamily asset located in the Ashley Park neighborhood of West Charlotte, North Carolina. The property benefits from Charlotte’s thriving economy, ongoing public investments, and significant migration to the Sunbelt region. Built in 1951, Weyland Apartments offers stable cash flows, and with recent enhancements, it remains well-positioned to deliver additional value through further premium upgrades. Since acquiring the property in June 2018, Ginkgo has invested over $7.6 million in capital expenditures, improving the asset’s infrastructure, amenities, and unit interiors. Half of the units have undergone extensive renovations, and the community has a occupancy rate of 94%, with rents increasing by 68% over the past five years. This recapitalization provides investors with access to a consistently performing asset in one of the fastest-growing cities in the United States.ABOUT THE MANAGER
Ginkgo REIT OP LP is the general partner of Weyland Apartments. The property manager, Ginkgo Residential LLC, has a proven record of providing safe, affordable housing and delivering returns to investors. From 1997 to 2007, the Advisor, formerly known as BNP Residential Properties, Inc., achieved a 394% return for investors, compared to the S&P 500’s 286%, making it the second-best performing multifamily company during its public listing. In 2010, the team shifted focus to acquiring and upgrading older properties through “value-add” workforce housing projects. From March 2011 to June 2024, Ginkgo acquired over 9,000 apartments in North Carolina, South Carolina, and Virginia, with more than 4,392 units fully recapitalized or contributed to Ginkgo REIT.FINANCIALS
The recapitalization of Weyland Apartments offers investors a chance to participate in a stable, income-generating asset with significant value-add potential. The property’s proven performance, strategic location, and alignment with Charlotte’s growth trends ensure sustainable returns.Key investment metrics include:
- Purchase/Recapitalization Price: $26.7 million ($133,500 per unit)
- Capital Expenditures: $2.0 million
- Projected Net Investor IRR: 15.8% (levered)
- Levered Multiple: 2.14x
- Exit Cap Rate: 5.5%
5-Year Deal Level Targeted Cash Flows:
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total | |
Initial Investment | ($100,000) | ||||||
Projected Cash Flow | $5,272 | $7,037 | $7,825 | $8,370 | $8,971 | $37,474 | |
Net Sale Proceeds | $170,900 | $176,370 | |||||
Total | $213,844 |
Based on projected performance, actual performance results may vary.
Sources & Uses
Uses | Budget | Per Unit | |
Purchase Price | $26,700,000 | $133,500 | |
Total Buyer Closing Costs & Credits | 1,000,500 | 5,003 | |
Cash Required to Close With Seller | 27,700,500 | 138,503 | |
Working Capital | 299,988 | 1,500 | |
Acquisition Repairs & Improvements | 2,000,000 | 10,000 | |
Total Acquisition Budget | $30,000,488 | 150,002 | |
Sources | |||
First Mortgage Loan | $17,500,000 | $87,500 | |
Surplus Cash on Balance Sheet | 1,199,952 | 6,000 | |
35% | Limited Partner Equity | 3,955,188 | 19,776 |
65% | Sponsor | 7,345,348 | 36,727 |
Total Required at Closing | $30,000,488 | $150,002 |
PROPERTY OVERVIEW
Weyland Apartments is located at 2811 Marlowe Avenue, Charlotte, NC, within 5 minutes of Uptown Charlotte, South End, and the Charlotte International Airport. The 18.07-acre community consists of 200 units distributed across 61 buildings. Originally constructed in 1951, the property has undergone extensive renovations to maintain its competitive edge. The property achieved a 94% occupancy rate as of 2024, driven by a combination of well-maintained amenities and attractive unit interiors. The renovation strategy implemented by Ginkgo Residential has increased tenant retention and rent potential, further enhancing the asset’s value. The property consists of a mix of two- and three-bedroom units, with renovated units commanding higher rents. The table below summarizes the unit distribution and rental performance:Unit Type | Count | Avg. Size (SF) | Pre-Reno Rent | Post-Reno Rent |
2-Bedroom | 175 | 715 | $1,183 | $1,232 |
3-Bedroom | 25 | 925 | $1,196 | $1,276 |
PERFORMANCE OVERVIEW (2018-2024)
Weyland Apartments has experienced steady growth across key performance metrics. Effective rents have increased by 68%, from $704 in 2018 to $1,184 in 2024. Total revenue grew by 64% during the same period, reaching $2.66 million, while NOI expanded by 58%, now totaling $1.33 million. Operating expenses have risen proportionately with revenue growth, ensuring the property remains financially sustainable.Metric | 2018 | 2024 | Growth |
Occupancy | 94% | 94% | 0% |
Effective Rent | $704 | $1,184 | 68% |
Revenue | $1.62M | $2.66M | 64% |
Expenses | $0.78M | $1.33M | 70% |
NOI | $0.84M | $1.33M | 58% |
- Clubhouse Addition Featuring Fitness Center
- Recent Pool Renovation
- New Outdoor Amenities: Dog park and grill areas
- Exterior Enhancements: Roofing, siding, sidewalks, and signage
- Interior Renovations: New appliances, flooring, and plumbing upgrades
RENOVATION STRATEGY
Ginkgo has renovated 50% of the units, upgrading them to a “Premium” standard. Premium units feature a comprehensive interior makeover, including:- Stainless Steel Appliances
- Quartz Countertops and Tile Backsplashes
- White Shaker Cabinets and Modern Lighting Fixtures
- Faux Wood Flooring
- Washer/Dryer Installations
MARKET OVERVIEW – CHARLOTTE, NC
Charlotte is one of the top-performing real estate markets in the U.S., supported by rapid population growth, a strong job market, and corporate relocations. Major employers in the area include Bank of America, Wells Fargo, and Truist, as well as multiple Fortune 1000 companies that have established headquarters in Charlotte since 2018. The city’s cost of living remains lower than many other major metropolitan areas, contributing to the steady migration of young professionals. Public investments, such as the $72 million Corridors of Opportunity initiative and infrastructure expansions like the Silver Line light rail, further solidify Charlotte as a desirable place to live and work.FEES & RETURN STRUCTURE
Investment Fees | |
Asset Management: | greater of $24k or 0.5% of LP equity |
Property Management: | 3% plus allocated costs |
Construction Management: | 6% of the capital plan |
Acquisition Fee: | 1.5% of purchase price |
Tier | Hurdle Rate (Up to) | Type | Members | Promote |
Tier 1 | 10% | IRR | 100% | 0% |
Tier 2 | 14% | IRR | 80% | 20% |
Tier 3 | Thereafter | 60% | 40% |
KEY DATES
Estimated Project Timeline- Target Investment Hold Period: 5 years
- Target Closing Date: December 12, 2024
- Offers Due Date: December 10, 2024
- Funds Due Date: December 12, 2024
CONCLUSION
Weyland Apartments presents a compelling investment opportunity for those seeking exposure to a well-managed, high-demand asset in the rapidly growing Charlotte market. With a strong track record of performance and significant investments already made, the property is positioned to deliver attractive returns through continued value-add initiatives. Ginkgo Residential’s deep expertise in the local market and proven management model further enhance the investment’s potential. This offering memorandum highlights the stability, growth potential, and strategic advantages of investing in Weyland Apartments. Investors will benefit from predictable cash flows, long-term appreciation, and the ability to capitalize on one of the most dynamic real estate markets in the United States.DOCUMENTS
Investor Packet [BEING DRAFTED]
- Private Placement Memorandum
- Operating Partnership Agreement
- Subscription Agreement