Hamilton Point Investments has an extensive track record of acquiring and operating value add apartment. HPI Fund XII intends to invest in multi-family assets with purchase prices between $10 million and $50 million with roughly 65%‐70% leverage expected to result in an overall portfolio of $450 million.
The combination of rapid increases in single-family home prices and mortgage interest rates has resulted in a 140% increase in the difference between the cost to own and the cost to rent, relative to its prior peak. As a potential recession looms and inflation continues to eat away at consumers’ savings, it is South Coast’s view that this disparity in affordability will push more people into the rental pool. As a result, the multifamily sector has the potential to see strong demand even in the face of an economic downturn.
Since 2010, HPI has taken 14 multi-family programs full cycle, each within a 5-year holding period, with annualized IRRs between 14.30% and 21.20%. HPI Fund XII is a $150m offering (expandable to $200m) projected to pay a 6% tax-advantaged annual distribution rate with an anticipated hold time of 4-6 years. Minimum investment is $50,000 for accredited investors only.
Join us for a discussion on how South Coast has partnered with Hamilton Point Investments to take advantage of the current opportunity in multi-family.