The 140-unit asset operates under a master lease structure with master tenant income set at 98% between specific hurdles. Onsite staffing is set at 1.5 full-time employees shared with an adjacent master tenant asset.
Ongoing fee rates
Master Tenant Income98%
Disposition Fee2.0%
Asset Mgmt Fee (annual)
$52,877
Master Tenant Income
98%
Property Mgmt Fee
Managed
apartments for roughly 70 years
Disposition Fee
2.0%
CM Fee
A
of construction management fee for supervising any construction of repair of the Property, as provided for in the approved annual budget of the Property
Strengths
- Management partner Village Green operates 4,917 units in the local market
- Onsite staffing optimized at 1.5 FTEs via staff sharing
Concerns
- Year 1 projected income starts at 4.28%
- Operational performance bounded by master lease hurdle structure