Transcendent Electra, the joint venture between Transcendent Investment Management and Electra America have launched a private equity offering on the real estate investment platform CrowdStreet to fund the purchase of 101 single-family rentals throughout selective Sunbelt markets.
The newly-built homes are located in Florida, Georgia, North Carolina, South Carolina, Alabama, Tennessee and Texas–markets that are outpacing the U.S. averages in terms of population, rent and home value growth rates.
The properties are under contract at an aggregate purchase price of $26,116,515. The total purchase price will be equal to $26,381,314, inclusive of appliances. The company is raising up to $9,892,105 through the CrowdStreet offering.
Investment Highlights
The US is experiencing a massive shortage in home supply, with Freddie Mac having the deficit pegged at 3.8 million homes just over a year ago. The shortage is even more drastic in Sunbelt markets where migration trends have caused high growth rates in the population.
The shortage, along with record-high home values, is causing a strong demand for rental units, which isn’t expected to slow down anytime soon. This demand has caused single-family rental portfolios to become an attractive asset class among institutional investors, which is likely to create a competitive buyer pool at the end of this investment’s target holding period.
- Minimum investment: $25,000
- Target IRR: 17%
- Target equity multiple: 1.6x
- Target average cash yield: 2.6%
- Target hold period: 3 years
Deal Sponsor
Transcendent Investment Management is a private equity real estate investment firm and vertically integrated manager that focuses on the acquisition, development and management of single-family homes and attached townhome rentals. The company has completed over $1.25 billion in transactions and has a strong track record of positive returns on realized investments.
Photo: Courtesy of CrowdStreet
