iintoo
Login
Share this offer

For deal financials, please contact your licensed investment specialist. Please note: Per FINRA Rule 2210, we are no longer permitted to enclose IRR estimates, as of July 2020.

Investment Highlights
1. Expecting Strong Post-COVID Market Dynamics

The deal asset is located in Tampa’s University submarket – the #1 Tampa submarket in terms of projected post-COVID rent growth (2022-2024) according to Axiometrics, at 4.5% per year.[1] A recent PWC report ranked Tampa #6 in overall real estate prospects and #2 for investment in the multifamily sector among the 80 markets surveyed [2], and our deal submarket is the only Tampa submarket with no new multifamily inventory deliveries expected through 2024.[1]


2. Seasoned Sponsor with Proven Local Track Record

The Sponsor has an extensive track record managing multifamily assets in Florida, having owned 6,129 units and managed 696 units across the Sunshine State.[1] Recently, the Sponsor operated, renovated and sold a similar property located about a mile from the deal asset.


3. Significant Value-Add Opportunity

The Sponsor expects to increase monthly rents from $943 to $1,090 via an extensive value-add renovation plan. This plan covers both interior upgrades and strategic enhancements to common area amenities, and the Sponsor has successfully achieved post-renovation rent premiums of $150 for other similar properties in the past.[1]



[1] According to Sponsor

[2] PwC, “Emerging Trends in Real Estate® United States and Canada 2021”

Market Overview
Tampa is a Magnet Market with a COVID-Resistant Economy

Tampa’s multifaceted advantages have made it one of the most popular cities in the U.S.; Forbes ranks Tampa as among the best places for business and careers/job growth, and the city also received high ratings from U.S. News & World Report in terms of overall desirability, value, job market, and quality of life.

Since the onset of COVID-19, the best performing markets have offered a good combination of economic diversity and affordability. Tampa’s Economic Development Council found that Tampa’s high-growth industries largely consist of sectors that have been fueled by the pandemic, such as healthcare, IT, distribution and logistics.[1] As a result, Tampa’s local economy is much less reliant on industries that have suffered the most from the pandemic.

As a testament to this fact, the Bureau of Labor Statistics reported that unemployment in the Tampa-St. Petersburg-Clearwater metro region was -4.3% as of August 2020 (well above the national average of -7.0%), which indicates faster job growth in the region. Going forward, RealPage forecasts the area's job growth to be ~5.0% in 2021 and 2.3% each year from 2022 to 2024.[2]


Tampa’s Multifamily Market

Tampa’s steady job growth, population growth and business expansions are resulting in rapidly rising demand for housing in Hillsborough County, where Tampa is located. In a recent report by PwC on U.S. “Magnet Markets”, Tampa ranked in the top 10 for overall real estate prospects[3], and the majority of economists and real estate experts surveyed by the Tampa Bay Times last year expect Tampa’s real estate market to outperform the national average in 2021. [4] As the Tampa Bay Times reports, pent-up demand and low inventory is making it difficult for first-time home buyers to compete.

Tampa’s median home prices grew 9.1% from 2019 to 2020, and the bullish housing market is helping drive demand for rental properties in the Tampa metro area.[5] As a result, there is a persistent need for rental housing options that provide several benefits of homeownership in a convenient, cost-accessible format. This demand for high-quality multifamily housing has resulted in consistent rent growth for over a decade in Tampa. The city’s annual effective rent growth has averaged 2.7% year-over-year since 1996 and rent prices in our deal submarket, University, have grown even more rapidly at 3.2% y-o-y over the same period.[2]

Going forward, the submarket’s effective rent growth is forecasted to average 4.1% from 2021 to 2023, and this demand is further bolstered by the fact that University is the only Tampa submarket with no new multifamily inventory deliveries expected through 2024.[7]



[1] Tampa Bay Economic Development Council

[2] RealPage, “Tampa-St. Petersburg-Clearwater Market Performance Summary Q32020”

[3] PwC, “Emerging Trends in Real Estate – United States and Canada 2021”

[4] Tampa Bay Times, “Hot Tampa Housing Market Leaves Some Buyers in the Cold”

[5] Berkadia, “Tampa Market Overview”

[6] According to Sponsor

Sponsor Track Record

Praxis Capital has an extensive track record managing multifamily assets in Florida, and in addition to this deal the Sponsor has owned 6,129 units and managed 696 units across the Sunshine State. The Sponsor recently managed, renovated then sold another Tampa property named Turtle Creek Apartment Homes, which is similar to the deal asset and located about a mile away.


Turtle Creek Apartment Homes (Comparable Asset)
  • 232-unit multifamily property (built in 1985)
  • Purchased by the Sponsor for $18.58M on August 28, 2017
  • Sold by the Sponsor for $30.6M on August 14, 2020


Capital Stack

Deal Structure

Operational Performance from Ongoing Cashflows through Project Cycle

Estimated Project Cashflow from Operations

Legal Structure

Ownership

The iintoo investor entity is expected to hold a 37.54% stake in the special purpose entity that own the asset. Ownership of the asset is via a two-tiered designated SPV held by investors.

The principal of the Sponsor provides a personal undertaking of the obligations of the Sponsor under the JV agreement. iintoo will oversee and monitor the project until its completion and provide investors with quarterly progress reports. See Private Placement Memorandum for further details.

Buyout

Starting at 18 months until 36 months from the project start date, the Sponsor is entitled to a buyout right that should amount to a cash sum that represents a return equal to the projected IRR of 18% plus 7% of iintoo’s capital contribution.

Please refer to page 3 of the Summary of Key Terms in executed JV Formation Agreement, which describes the mechanism for buyout at 36 months.

For deal financials, please contact your licensed investment specialist Please note: Per FINRA Rule 2210, we are no longer permitted to enclose IRR estimates, as of July 2020.

* When we refer to “Equity Protection” we are referring to an arrangement where iintoo epiic GP LLC, the general partner of each covered issuer (“Covered Issuer”), promises that, even in the event the underlying project is not profitable or records a loss, the investor in the Covered Issuer shall receive a specified amount equal to the original principal investment he/she/it provided (less other amounts already received by such individual investor during the course of the investment) subject, however, to significant limitations including but not limited to repayments for losses in the Covered Issuer are only made up to a maximum amount of funds available from the retention account and the policy (where such policy limit may be less than the total amount invested), repayments are on a first come, first serve basis, and losses are aggregated across Covered Issuers subject to the same retention account and policy. Iintoo epiic GP LLC, and not investors, is a party to the policy with Everest Insurance®. As a result, investors have no direct legal rights under the policy. In addition, beyond use of the Equity Protection proceeds from the retention account and the policy, neither iintoo epiic GP LLC nor the Covered Issuer has any obligations to indemnify investors for losses. For more information, please see “Business of the Company—Equity Protection” and “Risk Factors—Risks related to the Equity Protection” in any of our issuers’ private placement memoranda.

About iintoo

The above may contain forward-looking statements. Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in the above depending on a variety of factors. All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable laws, we undertake no obligation to update any information contained above or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of the publishing of the above.

Private placements of securities accessible through the iintoo™ social network real-estate investment platform (the “Platform”) are intended for accredited investors. Such private placements of securities have not been registered under applicable securities laws, are restricted and not publicly traded, may be subject to holding period requirements, and are intended for investors who do not need a liquid investment. These investments are not bank deposits (and thus are not insured by the FDIC or by any other federal governmental agency), are not guaranteed by and iintoo Investments Ltd. (“iintoo”) or any third party working on our behalf, and may lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the Platform. Investors may lose heir entire investment.


Equity securities are offered through Dalmore Group LLC. ("Dalmore"), a registered broker-dealer and member of FINRA (www.finra.org), member of SIPC (www.sipc.org). Any real estate investment accessible though the Platform involves substantial risks. Any projections as herein stated, are hypothetical in nature, are based on methodology deployed regarding the likelihood of various investment outcomes, do not reflect actual investment results and are not guarantees of future results, and iintoo makes no representations or warranties as to the accuracy of such information as herein stated and accepts no liability whatsoever.

Investors should always conduct their own due diligence, not rely on the financial assumptions or estimates displayed herein, and should always consult with a reputable financial advisor, attorney, accountant, and any other professional that can help them to understand and assess the risks associated with any investment opportunity. Any investment involves substantial risks. Major risks, including related to the Equity Protection and/or the potential loss of some or all principal, are disclosed in the private placement memorandum for each applicable investment.

Neither iintoo nor its affiliates nor Dalmore Group LLC makes investment recommendations nor do they provide investment advisory services, and no communication, including herein or through the Platform or in any other medium should be construed as such. iintoo, its employees and affiliates are not insurers or insurance brokers, and do not offer insurance services, advice or information to new or existing investors.

Insurance is provided to Iintoo epiic GP LLC (and placed through Cobbs Allen, a licensed insurance intermediary) by Everest Insurance®, subject to all of the terms and conditions of the applicable insurance policy, to support iintoo’s equity protection undertaking as further specified and described in the confidential offering materials of iintoo. Everest Insurance® is not a sponsor or promoter of any offering described herein.

The Terms of Use regulating your use of the Platform can be found at: https://www.iintoo.com/terms-of-use/

The Platform's Privacy Policy can be found at: https://www.iintoo.com/privacy-policy/

By accessing this site and any pages thereof, you agree to be bound by our Terms of Use and Privacy Policy.

Everest Re Group, Ltd. is a Bermuda holding company that operates through the following subsidiaries: Everest Reinsurance Company provides reinsurance to property and casualty insurers in both the U.S. and international markets. Everest Reinsurance (Bermuda), Ltd., including through its branch in the United Kingdom, provides reinsurance and insurance to worldwide property and casualty markets and reinsurance to life insurers. Everest Reinsurance Company (Ireland), provides reinsurance to non-life insurers in Europe. Everest Insurance® refers to the primary insurance operations of Everest Re Group, Ltd., and its affiliated companies which offer property, casualty and specialty lines insurance on both an admitted and non-admitted basis in the U.S. and internationally. The Company also operates within the Lloyd's insurance market through Syndicate 2786. In addition, through Mt. Logan Re, Ltd., the Company manages segregated accounts, capitalized by the Company and third party investors that provide reinsurance for property catastrophe risks. Additional information on Everest Re Group companies can be found at the Group’s web site at www.everestre.com