For over 30 years, Wilkinson has provided its clients with opportunities to invest in real estate by utilizing a simplified multifamily real estate fund platform that has consistently met and often exceeded expectations.
With Wilkinson Properties Fund 17, we continue in the tradition of offering our clients a diversified multifamily investment portfolio of hand-selected properties strategically located to optimize potential returns. Our value add and core plus strategies provide the best way to invest in real estate.
ASSET TYPE
Garden Style and Mid-Rise Multifamily Communities
REAL ESTATE CLASSES
Value Add and Core Plus
TARGET NUMBER
4 – 7 Properties
EXPECTED HOLD PERIODS
6–8 Years
TARGET FUND SIZE
$50 Million
MINIMUM INVESTMENT
$50,000
AVAILABILTY
Accredited Investors
TARGET METRO MARKETS
Including Atlanta, Dallas-Fort Worth, Indianapolis and other Southeastern growth markets as well as Pacific Northwest secondary markets
Fund Objectives
Purchase opportunistically and enhance the value of assets to secure attractive valuations at the time of liquidation or refinance.
Preserve, protect, and return real estate investors’ capital contribution.
Produce net cash from operations to provide cash available for distribution to Class A members.
Increase property values to produce an attractive total return on investment (Class C).
The following images are included for illustration purposes only. These properties will not be included in the Fund 17 portfolio of investments.
Target Markets & Features
We seek to identify real estate investment opportunities in rapidly growing markets with diverse local economic dynamics that provide growth potential and significant barriers to entry.
Our deep experience in the Atlanta and Indianapolis markets and previous investments in the Dallas-Fort Worth market enable us to effectively source properties with high potential for growth.
Current portfolio properties found in the illustration refers to the entire Wilkinson portfolio and is not inclusive of only Fund 17 properties.
Property Acquisitions in the Fund
An open Fund, such as Fund 17, assumes a partial ownership position in the capital stack of a particular property. The Accredited Investors own a pro-rata position of the Fund, depending on the investment made. While a Fund is open, Wilkinson generally targets the acquisition of four to seven properties in various cities, which helps diversify the Fund.
During the lifecycle of the Fund, Wilkinson manages each community, with an intention to force appreciation by adding value and amenities. During the course of the Fund, capital is raised, properties are purchased and value is added. The Fund is closed to new investment. Meanwhile the properties continue to be managed. A Fund is considered having run full-cycle when all the acquired properties have completed their term (for example, six to seven year hold period), and then one-by-one the properties are sold and during the Fund’s lifecycle, distributions from these dispositions are made to all the stakeholders. When the last property inside a fund is sold, the closed Fund is effectively retired.
Class A Investors
Entitled to several priorities:A higher Preferred Return (10%) than Class C investors (8%).
Targeted regular monthly distributions at a rate of 8%, which depend on available cash and count towards satisfying their Preferred Return.*
Priority Return of Capital.
Advantage
Class A investors are expected to receive higher and more consistent income and have a lower risk profile.
*The balance of their Preferred Return accrues and builds up over time as new assets stabilize and regular cash flow grows. However, the Preferred Return is non-compounded. Investors investing $1M or more may be eligible to purchase units that provide a higher return.
Targeted to produce regular cash flow
Lower risk profile
Reduced overall economic potential
Target cash flow: 8%
Target Annualized Return: 10%
Class C Investors
Expected to receive most of their income and gains as portfolio properties are sold.**
Entitled to receive 70% of residual net cash flow after all investors have received their respective Preferred Returns plus Return of Capital.
Advantage
The 70% sharing of remaining (residual) net cash flow gives Class C investors an opportunity for considerably greater overall economic benefit.
** Upon a sale, after repayment of debt, accrued Preferred Returns, accrued Class A Preferred Returns, and repayment of Class A capital contributions on a pro-rata basis, Class C investors will receive their accrued Preferred Returns of 8% annualized and then a return of capital. Investors investing $1M or more may be eligible to purchase units that provide a higher return.
OBJECTIVES / EXPECTATIONS
Cash flow from capital events only
Somewhat higher risk profile
Greater overall economic potential
Target equity multiple: 1.7% - 1.9%
Target IRR: 13.5% - 16.5%
Note that the target equity multiple and target IRR for Class C investors may be somewhat higher than those shown above in the case of specific portfolio properties in which a Preferred Equity Partner has invested.
