Offering summary
Reno City Center LLC TIC is an equity offering structured to raise $51,422,000 for the acquisition and repositioning of a 282-unit mixed-use real property project located at 219 University Way in Reno, Nevada. The project involves the adaptive reuse of the former Harrah's Casino property. The offering is capitalized entirely with equity, utilizing $0 of debt financing (0% LTV). Madison Capital Group serves as the sponsor, bringing $1,500,000,000 in assets under management and 20 years of real estate experience. Total front-end fees and expenses equal $5,656,420, representing an 11% load on equity. The projected investment term is between 6 to 24 months.
Capital raise
0.0% of the offering is closed
$51,422,000 still available
$51,422,000
$0
0.0% of offering$0
Pending subscription$51,422,000
Open for subscriptionThe sponsor is raising $51,422,000 in equity with no third-party debt. The offering is structured with an anticipated investment holding period of 6 to 24 months.
Offering terms
Sector
Other
Investment Category
DST
Projected First Year Cashflow
—
Avg. — over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$51,422,000
$182,348 per unit
Offering Debt
$0
All-equity offering
LTV
0%
On acquisition price
Units / Tenants
282
219 University Way, Reno, Nevada
Property Age
The project is an adaptive reuse development that transforms the former Harrah’s Casino, but no specific construction year or explicit age of the property is stated in the excerpts provided.
The offering covers a 282-unit mixed-use adaptive reuse asset located at 219 University Way in Reno, Nevada. The transaction is capitalized with $51,422,000 of equity at an acquisition cap rate of 5.5% and a stated acquisition price of $125,000,000. It is an all-cash structure with 0% acquisition leverage.
Strengths & considerations
Key strengths
All-Cash Structure
0% LTVThe offering carries $0 in loan debt, completely eliminating mortgage refinancing and interest rate risks.
Sponsor Scale
$1,500,000,000 AUMMadison Capital Group possesses 20 years of real estate experience in multifamily and commercial development.
Low Asset Management Fee
$12,000 per yearThe fixed base asset management fee is minimal relative to the $51,422,000 equity raise.
Key considerations
Front-End Load
11% ($5,656,420)Front-end load includes 6% selling commissions, dealer fees ($771,330), wholesaling fees ($771,330), and O&O expenses ($514,220).
Short Investment Horizon
6 to 24 monthsThe short hold period requires rapid execution of the adaptive reuse business plan.
Disposition Fee
4%A disposition fee of four percent (4%) is payable upon property liquidation.
The offering features a zero-leverage, all-cash capitalization structure that eliminates debt service obligations and interest rate risk. Sponsor Madison Capital Group demonstrates operational scale with $1,500,000,000 in assets under management and 20 years of sector experience. Additionally, the ongoing annual asset management fee is low at $12,000 per year.
Sources, uses & fee assessment
Capital Sources
- $51.42M
Offering Equity
100.0% of offering
Where the Capital Goes
- $45.27M
Acquisition Cost
88.0% of offering
- $5.66M
Offering Expenses
11.0% of offering
- $500K
Reserves
1.0% of offering
Total Offering
$51.42M
All equity — no mortgage debt
Acquisition Cost
$45.27M
88.0% of offering to the property
Total Fees & Expenses
$5.66M
11.00% of offering
Reserves
$500K
1.0% of offering
Gross equity proceeds of $51,422,000 fund $45,265,528 in total acquisition costs, $500,052 in reserves, and $5,656,420 in total offering fees and expenses. Finance expenses are listed at $15,875,191.
Risk read
Tone reflects relative strength, not a rating
Leverage Profile
PositiveThe transaction utilizes 0% LTV ($0 debt), removing debt service burden and interest rate risk.
Front-End Load
CautionTotal front-end offering expenses and fees equal $5,656,420 (11% of equity).
Investment Duration
CautionTarget holding term is 6 to 24 months, presenting timeline sensitivity for business plan execution.
Exit Compensation
CautionThe sponsor collects a 4% disposition fee upon sale of the real estate.
Key considerations include an abbreviated investment horizon of 6 to 24 months and an 11% front-end fee load. The sponsor also receives a 4% disposition fee upon sale and a 5% monthly property management fee on gross revenues. The underlying asset represents an adaptive reuse project of a former casino, which may entail execution complexity.
Calculated underwriting metrics
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load
11.00%
Total fees ÷ offering price (all-equity offering)
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
41.1%
Offering price ÷ acquisition price
Price per Unit
$182,348
Offering price ÷ 282 units
Total front-end offering expenses and fees total $5,656,420, which constitutes an 11% load on gross equity proceeds. Total acquisition costs with reserves stand at $45,265,528, including $500,052 in lumped reserves. The appraisal to offering ratio is reported at 242.6%.
Sponsor
Sponsor
MADISON CAPITAL GROUP
Madison Capital Group has 20 years of real estate experience acquiring and developing apartment communities and self-storage assets, overseeing $1,500,000,000 in AUM.
—
Properties owned or managed
$1,500,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
References to employees in the excerpts relate to the Asset Manager’s principals and employees, but no specific employee count or team size is provided.
Disclosed headcount
Other
Stated strategy
Madison Capital Group operates as the sponsor with $1,500,000,000 in assets under management. The sponsor brings 20 years of experience acquiring and developing apartment communities and self-storage facilities. Details regarding total portfolio property count and specific employee headcount are not disclosed in the offering materials.