Magnolia Charleston Apartments

Asset type: Apartment · Location: Charleston, South Carolina

Magnolia is a 312-unit workforce housing community located in West Ashley, Charleston, South Carolina, one of the most established and convenient areas in the metro. The property is currently about 92% occupied and leasing closer to 95% , which shows strong demand for this type of housing in the area. The previous ownership has been managing the asset from out of state. That has created operational gaps that our team believes can be improved through local management and a focused renovation plan . Several members of our team live and operate in Charleston and will be closely involved in the renovation and day-to-day oversight of the property. Why This Deal Stands Out Local Execution Our asset manager and general contractor are both based in Charleston and operate minutes from the property. This allows us to stay closely involved in renovations, maintenance, and operations. In-House Construction Oversight Renovations will be overseen by Derek Hogarty, a licensed South Carolina general contractor with more than 30 years of experience. Having construction leadership inside the partnership helps control costs and keep the renovation process efficient. Strong Rental Demand Magnolia is already performing well with occupancy above 90%. The goal is not to reposition the property entirely, but to improve the product and operations while maintaining stable occupancy. Tax Advantages Because of the age of the property, investors may benefit from cost segregation and bonus depreciation , which can help offset taxable income in the early years of the investment. The Property Location: West Ashley, Charleston, SC Units: 312 Garden-Style Apartments Year Built: 1968 Current Occupancy: ~92% Average Unit Size: ~953 SF The property sits near the Highway 17 commercial corridor , providing easy access to grocery stores, retail centers, and major employment areas throughout Charleston. Downtown Charleston, the airport, and several large employers are all within a short drive. The Plan About 48% of the units have already been upgraded by the current owner. Our focus will be to finish upgrading the remaining units as leases turn over while also addressing exterior maintenance and improving the overall appearance of the community. Renovations will include: Updated flooring and finishes Kitchen and appliance upgrades Bathroom improvements Exterior and maintenance improvements Comparable renovated units in the area are renting $200–$300 higher per month , which supports the renovation strategy over the hold period. The Market: Charleston, SC Charleston continues to attract both businesses and new residents. The region has seen steady population and job growth supported by employers such as Boeing, Volvo, healthcare systems, port operations, and technology companies . At the same time, housing costs have increased significantly. The average home price in the area now exceeds $500,000 , which keeps many working professionals in the rental market. This creates consistent demand for well-located workforce housing communities like Magnolia. Investment Overview Minimum Investment: $100,000 Preferred Return: 8% to investors Projected IRR: ~18–19%* Equity Multiple: 2.27x* Average Cash-on-Cash: ~8%* Target Hold Period: ~5 years Structure: Reg D 506(c) offering (accredited investors only) ~$9M already committed. Approximately $6.7M remaining. Allocation is being filled on a first-come basis. *Projected returns are estimates and not guaranteed. The Generals (Our Team) Derek Hogarty (The Builder) : Licensed General Contractor in SC. 30+ years exp. He signs the checks for the lumber. This is your risk mitigation. Charlie Peters (The Stabilizer) : 25+ years. Proven track record of surviving 2008 with zero defaults. Conservative leverage, aggressive management. Frank Patalano (The Syndicator) : Active investor across 12 markets. Expert in value-add execution. Ted Boyle (The Neighbor) : Local Charleston asset manager. He is your eyes and ears on the ground. Douglas J. Beck (The Strategist) : Former Fortune 50 leader ensuring the business structure is optimized for growth. Together the team focuses on steady execution, conservative underwriting, and hands-on oversight of the asset. The Ask & The Timeline Minimum Commitment: $100,000 If the Magnolia opportunity looks interesting to you, the next step is simply to indicate interest with a potential investment amount starting at $100K . This is not a binding commitment . It simply lets us know you may want to participate so we can follow up, answer questions, and walk through the details with you. ~$9M already committed. Approximately $6.7M remaining. Allocation is being filled on a first-come basis. The Process Step 1 — Indicate Interest Select your potential investment amount in the portal. Step 2 — Review Materials We’ll send you the full offering materials and answer any questions you may have. Step 3 — Finalize Investment If you decide to move forward, you’ll complete the accredited investor verification and finalize your subscription through the portal. Timing We are currently gathering soft commitments as we move toward closing. Over the next 30–45 days , we will be confirming allocations with investors who have indicated interest. Once allocations are finalized, those investors will receive the full offering documents and instructions to complete their investment through the portal. Because this is a first-come review process , indicating interest earlier helps us understand potential allocations as we move toward closing. Why invest now? Charleston continues to experience strong population and job growth , while new workforce housing supply in established submarkets like West Ashley remains limited. Higher interest rates have slowed some buyers on the acquisition side, which has created opportunities to acquire quality assets at more reasonable pricing. Our goal is to purchase the property at today’s pricing , improve operations over the hold period, and position the asset for sale into a future market that may look very different several years from now. This information is for accredited investors only and does not constitute an offer to sell or a solicitation of an offer to buy securities. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results.