SkyVue Apartments | San Antonio, TX

Asset type: Apartment · Location: San Antonio, Texas

LP equity investment in SkyVue, a 232-unit apartment community in Northwest San Antonio, Texas. Investors would invest alongside Coulton Creek Capital ("CCC") in partnership with Cooper Street Capital ("CSC"), an experienced multifamily operator. The opportunity SkyVue is about 91% occupied. Its existing loan faces a significant interest rate reset and cannot be refinanced at current valuations, and the senior lender is running the sale at a price equal to the loan balance. The business plan is to buy in-place cash flow with accretive leverage, then improve operations through CSC's in-house property management and light capital improvements. Highlights Purchase price of $17.0 million ($73k per unit), about 30% below the 2022 valuation All-in cost of $89k per unit ($115 per SF) Anticipated interest rate of about 5.5% against a 6% going-in cap rate; 7.5%+ stabilized yield $1.58 million capex budget focused on common areas, durable repairs and unit turns Located less than one mile from UTSA, near The RIM and The Shops at La Cantera Pro forma terms and returns (not guaranteed) Current return: 12.0% gross / 10.0% net to investors, paid quarterly Total return: 19.7% gross IRR / 1.41x; 17.1% net IRR / 1.35x to investors Estimated 2-year hold, with an exit at a 6.50% cap rate; alternative plan to refinance and hold 2% asset management fee to CCC, paid quarterly 100% to investors until a 10% IRR, then 95/5 to investors and CCC until a 17% IRR, then 80/20. Total effective splits including CSC are 66.5/33.5 and 56/44. Capitalization $20.65 million total: $13.0 million senior debt under an executed Wells Fargo term sheet, $7.15 million CCC equity and $500,000 GP equity. Sponsor Founded in 2012, CSC is vertically integrated and has acquired and exited 70 properties worth $870 million in aggregate sales price. Projected returns are pro forma and actual results may differ materially. Investing involves a high degree of risk, including possible loss of capital. This listing is not an offer to sell or a solicitation of an offer to buy securities; any offering will be made only through the offering documents. Intermezzo may be compensated by Coulton Creek Capital in connection with this offering.