Multi-Family | Opportunistic Growth
Let’s build generational wealth together.
How It Works
Who We Are: Caliber provides high net-worth individuals and the investment advisers who serve them access to sophisticated, private real estate investments that have been traditionally reserved for institutions.
Current Market Conditions*: SouthPointe Apartments** is in the Phoenix Valley, considered one of the strongest multi-family markets in the U.S. that is fueled by a favorable ‘supply and demand dynamics’ due to the number of employers and people relocating to Arizona. Over the last five years, commercial multi-family leads sales by total volume, compared to other asset classes.
Capitalizing on Market Opportunities: Caliber is repurposing its hotel into a contemporary apartment tower and developing the surrounding acreage into a low-density, master-planned, build-to-rent multi-family housing community.
Objective: Access to middle-market assets, with a 4 – 6-year holding period on investment.
About the parcels: Upon completion, SP 10 features a conversion of the existing hotel tower to high density units and ground-up development of the surrounding land to low density, for-rent units.
- 104 high density units in the tower
- 84 low density surface units
The hotel tower includes studio, one-bedroom and two-bedroom units. The surrounding low-density units offer one to three-bedroom units, some with attached garages.
Target Audience: Investors seeking portfolio diversification and long-term capital growth opportunities using commercial real estate, particularly focusing on multi-family assets.
Investment Terms
Target raise: $17,200,000
Minimum investment: $100,000
Hold period: 3-5-years
Equity multiple: Potential doubling of returns from original investment***
Management fee*: 1.5%
Initial price per unit: $1,000
Expiration Date: The term of the Fund will continue perpetually until the Return Threshold of the Investor Members has been achieved. Under the LLC Agreement, there is no required termination date of the Fund.
Key Benefits
Long-Term Capital Growth: With a 3-5 year holding period, investors can add a longer-term growth component to their portfolio. This duration aligns well with individuals seeking to build generational wealth and take advantage of market opportunities in the underserved middle-market.
Preferred Status: The preferred equity structure of the investment, with prioritized dividend payments and asset distribution, enhances investment protection over common stockholders. This feature can be appealing for those looking to balance risk with steady returns.
Portfolio Diversification: Investing in SP 10 can help diversify a portfolio by introducing commercial multi-family real estate assets, a unique asset class with the potential for attractive returns. This asset class can complement traditional investment vehicles like stocks and bonds, reducing the correlation with broader market movements.
Real Estate Exposure: Real estate is a valuable component of portfolio diversification. Caliber’s focus on the opportunistic multi-family asset, in the thriving Phoenix Valley market, offers investors the opportunity to participate in the growth of this specific sector, which may behave differently from other real estate segments or traditional investments.
Middle-Market Assets: SP 10 targets middle-market assets, creating an opportunity for investors to diversify their portfolio with investments in properties that are often less volatile than high-end luxury assets. This focus can provide a balance in the portfolio’s risk-return profile.
If you want to learn more about your investment possibilities with CHT, fill out the form below or contact us at [email protected], or your designated Wealth Development Team representative to see if this opportunity is a match with your estate planning goals.
*Sources:
- CoStar, CONTI Capital, AZ Big Media, US Census Bureau, The Trust for Public Land, AZ Central, PwC Emerging Trends in Real Estate 2023, PwC US Deals 2023 Outlook
- Intel’s Ocotillo campus will house a total of six fabs. The investment will create more than 3,000 new high-tech, high-wage jobs and 3,000 construction jobs, while supporting an estimated 15,000 additional indirect jobs in the community. When fully operational in 2024, the new fabs will manufacture Intel’s most advanced process technologies. https://www.chandleraz.gov/news-center/intel-breaks-ground-two-new-semiconductor-factories
- Multifamily Dive Article, June 5 2023 by Mary Salomonsen & https://www.rentcafe. com/blog/rental-market/market-snapshots/build-to-rent-single-family-homes-construction
**Marketing name of asset still to be finalized.
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If you want to learn more about your investment possibilities with Caliber SP 10 Preferred Equity, fill out the form below or contact us at [email protected], or your designated Wealth Development Team representative to see if this opportunity is a match with your estate planning goals.
About CaliberCos Inc.
Caliber (NASDAQ: CWD) is an alternative asset management firm whose purpose is to build generational With more than $2.9 billion of managed assets, Caliber’s 15-year track record of managing and developing real estate is built on a singular goal: make money in all market conditions. Our growth is fueled by our performance and our competitive advantage: we invest in projects, strategies, and geographies that global real estate institutions do not. Integral to our competitive advantage is our in-house shared services group, which offers Caliber greater control over our real estate and visibility to future investment opportunities. There are multiple ways to participate in Caliber’s success: you can invest in Nasdaq-listed CaliberCos Inc. and/or you can invest directly in our Private Funds.
Investor Considerations
The information contained herein is general in nature and is not intended, and should not be construed, as accounting, financial, investment, legal, or tax advice, or opinion, in each instance provided by Caliber or any of its affiliates, agents, or representatives. The reader is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances, desires, needs, and requires consideration of all applicable facts and circumstances. The reader understands and acknowledges that, prior to taking any action relating to this material, the reader (i) has been encouraged to rely upon the advice of the reader’s accounting, financial, investment, legal, and tax advisers with respect to the accounting, financial, investment, legal, tax, and other considerations relating to this material, (ii) is not relying upon Caliber or any of its affiliates, agents, employees, managers, members, or representatives for accounting, financial, investment, legal, tax, or business advice, and (iii) has sought independent accounting, financial, investment, legal, tax, and business advice relating to this material. Caliber, and each of its affiliates, agents, employees, managers, members, and representatives assumes no obligation to inform the reader of any change in the law or other factors that could affect the information contained herein.
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