Current opportunity
Timberland Indigo LLC
Investment opportunity in Indigo, a 395-unit multifamily community targeting consistent income generation and long-term capital appreciation.
Investment Target Size
$27 Million
Acquisition Size
$80 Million
Preferred Return
7% per annum
Investment Opportunity
Class A apartment community offering a sophisticated blend of luxury and convenience in Bloomington, MN. Located minutes from the Minneapolis/St. Paul International Airport and the Mall of America, the site is near numerous major employers and adjacent to the Metro Transit Light Rail.
Investment Strategy
Immediate Cash Flow
Indigo will be leveraged with a fixed-rate loan. Over the 7-year analysis, the projected average annual project cash-on-cash return is 8.4% with an estimated 12.5% IRR.
Below Replacement Cost
Indigo will be acquired for $80 million or $202,532 per unit, approximately 32% below replacement cost for similar product.
SIGNIFICANT SPONSOR CONTRIBUTION
Timberland Partners’ Principals will contribute 20% of the required equity, or $5.4 million.