Offering Summary
Caliber is offering up to 800,000 shares of Series AA Cumulative Redeemable Preferred Stock at an offering price of $25.00 per share, for a maximum offering amount of $20,000,000.
The Caliber Series AA Preferred Stock offering is open to non-accredited and accredited individual investors, providing a unique opportunity to earn steady, predictable income through fixed, cumulative dividends. This investment offers real estate exposure with lower volatility, granting access to a high-performing portfolio without the risks of direct property ownership. As a non-traded preferred equity position, it enhances portfolio diversification, making it an attractive addition to an investment strategy. Backed by Caliber’s experienced asset management team with a proven history of creating value across market cycles and delivering consistent investor returns. This offering presents a compelling passive income opportunity. As a private, limited offering, shares are not publicly traded, and there are no plans to list them on an exchange or over-the-counter market, making it an exclusive investment for those seeking long-term value.
Earn steady, predictable income through fixed, cumulative dividends, offering reliable cash flow without the complexities of direct property ownership.
Gain access to Caliber’s high-performing real estate portfolio while avoiding the risks of market volatility, making it an attractive alternative investment.
This non-traded preferred equity investment is not publicly available, with no plans for exchange listing, ensuring a unique, limited-access opportunity for investors seeking stable, long-term returns.
Offering Highlights
| Type of Security | Preferred Stock |
| Registration Type | Reg A+ (Tier 2) |
| Investor Suitability | Non-Accredited and Accredited |
| Maturity Date | 3-Years from CUSIP Issuance |
| Distribution Frequency | Monthly |
| Cash Dividend | 9.5% per Annum |
| Tax Form | 1099-DIV |
| Trading | Electronic (DTC); check/app (Direct) |
Investment Details
Investment Description
Canyon FundCo, LLC Project is an office-to-multifamily conversion opportunity located in Phoenix, Arizona. The properties were purchased at what is believed to be a significant discount to replacement value. The acquisition was for ±17.99 acres of land which includes two separate Class-A, multi-story office buildings totaling ±311,706 square feet, two multi-story parking structures, and the option to purchase a ±6.41-acre vacant land parcel within the regentrifying Metrocenter/Villages I-17 submarket. The properties are also located in an Opportunity Zone and are classified as a Qualified Opportunity Zone Business which makes it available for investment from Opportunity Zone Funds.
The primary focus of the project is the adaptive reuse of 2510 and 2512 West Dunlap Avenue into multi-family apartments. Additionally, the vacant 2518 parcel will be developed for either sale or further build-out, and the parking structure at 2512 will be redeveloped to include additional studio units. The predevelopment for the Project will require new zoning, a density variance, and building permits.
Property Details
| ADDRESS | 2510, 2512 & 2518 West Dunlap Avenue, Phoenix, AZ 85021 |
| ASSET CLASS | Multi-family |
| YEAR BUILT | Estimated Completion Date Q1 2027 |
| ACRES | Vacant Land Parcel ±6.41 |
| BUILDING SIZE | 2 Buildings totaling ±311,706 sq. ft. |
| NUMBER OF BUILDINGS | 2 |
| BUILDING NAME/PURPOSE | 2510 W. Dunlap Avenue ±133,894 sq. ft. 2512 W. Dunlap Avenue ±177,812 sq. ft. |
| OCCUPANCY | N/A |
Market Overview
| Demographics | 5-Mile Radius |
| Population (2024 Estimate) | 455,944 |
| Median Age | 35.90 |
| People per Household | 2.50 |
| Growth Projection (2024-2029) | 7.08% |
| Unemployment | 2.96% |
| *Source: CoStar |
Comparison Properties
| Property Name | Address | City | Property Type | Year Built | SF | % Leased | Sale Date | Purchase Price | Price Per SF |
|---|---|---|---|---|---|---|---|---|---|
| N/A | 2525 W Townley Ave | Phoenix | Office | 2019 | 99,918 | 0% | 1/5/24 | $15,225,000 | $152.37 |
| Dunlap Executive Offices | 2301 W Dunlap Ave | Phoenix | Office | 1985 | 41,572 | 25% | 11/16/23 | $2,750,000 | $66.15 |
| Arizona Business Park | 16001 N 28th Ave | Phoenix | Office | 1998 | 107,482 | 0% | 10/30/23 | $8,750,000 | $81.41 |
| N/A | 11839 N 28th Dr | Phoenix | Office | 1985 | 32,568 | 0% | 10/5/23 | $3,758,000 | $115.39 |
| *Source: CoStar |
Business Plan
General Business Summary
This development involves the conversion of two Class A office buildings into multifamily apartments, along with the addition of new units within and atop one of the existing structured parking garages. The project will be completed in two phases: Phase I will include 2512 W Dunlap Avenue and its associated parking garage, while Phase II will focus on 2510 W Dunlap Avenue. Upon completion, the project is expected to deliver approximately 376 residential units.
The project, once delivered, will be operated as for-rent multifamily apartments. Caliber will utilize a third-party property manager to manage the project.
Business Plan Assumptions
Net Operating Income (NOI)
| Combined – Phase I & II | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 |
|---|---|---|---|---|---|---|---|
| Total Revenue | $405,480 | $974,097 | $6,980,279 | $10,016,089 | $10,340,176 | $10,650,382 | $10,969,893 |
| Operating Expenses | $0 | $556,021 | $2,540,049 | $3,430,047 | $3,570,019 | $3,693,572 | $3,821,655 |
| NOI | $405,480 | $418,077 | $4,440,230 | $6,586,042 | $6,770,158 | $6,956,809 | $7,148,238 |
| NOI Growth (% YOY) | 0% | 3% | 962% | 48% | 3% | 3% | 3% |
| Expense Ratio | 0% | 57% | 36% | 34% | 35% | 35% | 35% |
| Debt Service | $264,359 | $3,648,939 | $5,507,667 | $4,233,428 | $3,853,868 | $3,853,868 | $3,853,868 |
| Debt Service Coverage Ratio | 1.53x | 0.11x | 0.81x | 1.56x | 1.76x | 1.81x | 1.85x |
Exit Strategy
The exit strategy for the Canyon Village asset is focused on either the sale or recapitalization of the asset. This will provide a liquidity event for investors, with the goal of maximizing returns. The exit is currently projected for Years 5-7 from the start of the project.
Assumptions*
| At Sale (Year 7) | |
|---|---|
| NOI | $7,148,238 |
| Occupancy | 92% |
| Cap Rate | 5.25% |
| All in Cost / Sale Price | $139,896,101 |
| Price per Unit | $372,064 |
| Average Rent $/SqFt | $2.75 |
*These numbers are valid assumptions as of December 19, 2024 and are subject to change.
Financial Plan
Capital Plan
| Capital Sources | |
|---|---|
| Equity | $26,000,000 |
| Debt | $67,023,788 |
| TOTAL SOURCES | $93,023,788 |
| Capital Uses | |
|---|---|
| Parcel 3 Option | $1,000,000 |
| Acquisition Costs | $23,824,936 |
| Pre-Development | $974,511 |
| Soft Costs | $9,945,670 |
| Hard Costs | $47,764,373 |
| Financing Costs | $6,855,560 |
| Equity Fee Reserve | $2,658,738 |
| TOTAL USES | $93,023,788 |
Investment Option & Terms
Option: Series AA Cumulative Redeemable Preferred Stock
Maximum Raise *
$20,000,000
Minimum Investment
$5,000
Anticipated Hold Period
3 years
Cash Dividend
9.5%
per annnum
Price Per Share
$25.00
An investment in our securities is highly speculative and involves a high degree of risk. Investments can lose their entire value, are illiquid and are speculative. Please refer to the Offering Circular for a more detailed discussion of risk factors.
Key Dates
Construction timeline
Phase I Construction Start
Q1 2025
Phase II Construction Start
Q4 2025
Phase I Construction Completion
Q2 2026
Phase I Stabilization & Phase II Construction Completion
Q1 2027
Phase II Stabilization
Q4 2027
Sale of Building 2510 & 2512
Q3 2031
Executive Team
Our executive team brings extensive experience in scaling businesses, having grown Caliber to $2.9 billion in assets under management, serving over 2,000 customers with more than 80 employees. With broad expertise in strategy, capital raising, real estate investing, product development, and capital markets, they are entrepreneurial leaders with a growth mindset and a contrarian approach. Aligned with shareholders, the team holds approximately 50% stock ownership, including the Co-Founders, ensuring their interests are fully aligned with investors.
CEO
Chris LoefferAs CEO, Chris oversees all acquisitions, manages investment funds, and builds strategic partnerships.
PRESIDENT, CO-FOUNDER & DIRECTOR
Jennifer SchraderJennifer is in charge of daily operations at Caliber and provides hands-on direction for all new construction and redevelopment projects across the company’s portfolio.
CHIEF FINANCIAL
OFFICER
Jade LeungAs CFO, Jade Oversees corporate financial planning, reporting, operational optimization, and risk management across Caliber’s business units.
CHIEF DEVELOPMENT OFFICER
Roy BadeRoy is responsible for sourcing and analysing potential properties for the company, seeking ways to maximize returns on existing properties, and managing construction and development activity.
Documents & Resources
Canyon FundCo, LLC
Other Canyon FundCo Documents
Articles & Press Coverage
Office space near Interstate 17 and Dunlap Avenue in Phoenix to become apartments
Assumptions & Risks
Below are selected risk factors associated with an investment in Series AA Cumulative Redeemable Preferred Stock. Investments in Caliber securities can lose entire value, are illiquid and are speculative.
- Investment involves high degree of risk; limited liquidity; no public market; suitable only for sophisticated investors;
- Investment strategy is speculative; returns are not guaranteed and no assurance objectives will be achieved;
- May pay distributions and fund redemptions from borrowings, offering proceeds, or asset sales with no limits on amounts it may pay from such sources;
- May invest in securities that involve a higher degree of risk or have valuations that fluctuate dramatically;
- Access to debt financing may be limited and subject to rate increases, restrictive covenants, or untimely repayment obligations;
- Involves unique risks associated with real estate investment, including competition for tenants, interest rate risk, occupancy issues, insurance risks, inflation risk, among others.;
- Offering is not contingent on a minimum capital raise;
- Multiple conflicts of interest, including compensation arrangements, incentive fee structures, positions held with affiliated entities, co-ownership arrangements, and the purchase of and allocation of investment opportunities.
- For a more complete discussion of risk factors, please refer to the Series AA Cumulative Redeemable Preferred Stock offering circular.
Disclosures
The material herein does not constitute an offer to sell nor is it a solicitation of an offer to purchase any security. Offers will only be made through an offering circular and where permitted by law. Investments in any security are not suitable for all investors. Investments in securities involve a high degree of risk and should only be considered by investors who can withstand the loss of their investment. Prospective investors should carefully review the “Risk Factors” section of the offering circular which is filed with the United States Securities and Exchange Commission (the “SEC”). Investors should perform their own investigations before considering any investment and consult with their own legal and tax advisors.
The above includes statements concerning the Company’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance, or growth and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, readers and the audience can identify these forward-looking statements through the use of words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could,” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update the information contained in any forward-looking statements to reflect developments or circumstances occurring after the statement is made or to reflect the occurrence of unanticipated events. The Company’s expectations, beliefs, and projections are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that management’s expectations, beliefs, or projections will result or be achieved or accomplished. Factors that may cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, factors affecting the Company’s ability to successfully operate and manage its business, including, among others, title disputes, weather conditions, shortages, delays, or unavailability of equipment and services required in real estate development, property management, brokerage and investment and fund operations, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; changes in costs of operations; loss of markets; volatility of real estate prices; imprecision of property valuations; environmental risks; fluctuations in weather patterns; competition; inability to access sufficient capital from internal and external sources; general economic conditions; litigation; changes in regulation and legislation; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities, acts of war, cyber attacks, or pest infestation; increasing costs of insurance, changes in coverage and the ability to obtain insurance; and other presently unknown or unforeseen factors. Other risk factors are detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission. In addition to financial measures calculated in accordance with generally accepted accounting principles (“GAAP”), this presentation contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures are useful because they provide an alternative method for assessing the Company’s operating results in a manner that is focused on the performance of the Company’s ongoing operations, for measuring the Company’s cash flow and liquidity, and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures prepared in accordance with GAAP. This information does not constitute an offering of, nor does it constitute the solicitation of an offer to buy securities of the Issuer. This information is provided solely to introduce the Issuer to the recipient and to determine whether the recipient would like additional information regarding the Issuer and its anticipated plans. Any investment in the Issuer or sale of its securities will only take place pursuant to an appropriate, private placement memorandum and a detailed subscription agreement. This information is confidential and may not be distributed to any other person without prior written consent. An investment is suitable only for persons of substantial net worth that are willing, and have the financial capability, to bear the economic risk of an investment for an indefinite period of time. Past performance is not necessarily indicative of future results and there is no assurance that the offering will achieve its objectives or avoid significant losses. There is no public market for the securities and the Issuer is not required to redeem the units. Investors should consult their own financial professional for advice specific to them. Circumstances may exist where potential conflicts of interest exist between the Investor, Advisor, Sponsor, and affiliates in connection with the management and operation of the offering. This offering may be subject to volatility of public securities that may impact the net asset value (NAV) and total return due to market risk. The use of borrowed funds to leverage investments involves a higher degree of financial risk and may impact performance. Also, the ability to obtain financing or adverse economic/property conditions impacting debt strategies can affect returns. Direct and indirect purchase of real property and commercial real estate involves significant risk, including, market risks, risks related to the sale of land, risks specific to a given property, principal risk and liquidity risk. These Real estate risks included, but are not limited to regulation and zoning, economic conditions, financial resources of tenants, changes in interest rates and availability of mortgage funds, casualty losses, decreased property values, development and construction risks, and acts of God.
Securities offered through ARKap Markets, LLC (Member FINRA/SIPC)