Article by provided courtesy of Veloce Capital. Republished with permission.
Veloce Capital is not just a private real estate investment firm; it’s a dynamic powerhouse dedicated to creating and amplifying wealth for its clients. How do we achieve this? Through our diversified investment strategies – from debt strategies delivering consistent monthly income to equities strategies leveraging the upside potential of projects, and tailored syndications designed to optimize tax savings and build generational wealth. Veloce Capital transforms investment goals into realities.
Let’s delve into a case study that shines a spotlight on our innovative approach and demonstrates how we work hand-in-hand with family offices.
A Winning Investment: Creating Value Through Strategic Syndication
A family office connected with Veloce Capital, seeking to take advantage of our unique syndication opportunities. Their objective? To acquire a stake in a profitable real estate asset and foster generational wealth while maintaining a passive investment role.
The solution? We facilitated the family’s purchase of a 40% stake in a stabilized multifamily apartment complex valued at $2.6M – for only $1.5M. This transaction created instant equity, saving the family an impressive $1.1M.
The asset in question is a high-performing property, built and stabilized in 2018 – a stark contrast to the average 1955 inventory in the area. Located in a market where rent has consistently increased by over 10% annually for the past three years, the investment offered significant potential for future growth.
Veloce Capital’s strategy was clear – empower the operator, a seasoned entity with over 4,000 units in the market, to raise rent back to market rates. In three years, the operator aims to refinance, providing the family office with an opportunity to recoup their initial investment tax-free.
Not only is this investment in an opportunity zone, but it’s also backed by low debt – with the majority of the debt standing at a competitive 3.16%. In an economic environment where we’re unlikely to see such low rates in the next five years, this presents a strategic advantage.
From acquisition to refinancing, the family enjoys a preferred return. Post-refinancing, the return becomes pro-rata based on rent collection. A win-win situation!
Why Veloce Capital?
With over 1,500 transactions, representing an impressive $1B in the last decade, Veloce Capital’s proven track record speaks volumes about our expertise, resilience, and commitment to our clients. We not only advise on potential investments but also invest our own capital, ensuring our interests are perfectly aligned with our clients.
If you’re a family office looking to enhance your real estate portfolio, join forces with Veloce Capital. Let’s explore the exciting world of real estate investment together, and turn your financial goals into tangible outcomes.
Contact us today to learn more about our unique investment strategies and how we can support you in building and preserving generational wealth.
LinkedIn: https://www.linkedin.com/in/mustafa-ladha/
Company website: https://www.velocecapital.com