Available Offering – (GCS) Gate at Canyon Ridge SLC, LLC
Gate at Canyon Ridge Apartments is a 167 unit project with six 4-story apartment buildings with great views of the mountain depicted in the Paramount Pictures logo and located in a rapidly improving area of Ogden, Utah (Salt Lake City-Provo-Orem, UT Combined Statistical Area). Although a well maintained property, the Seller has self-managed and never properly updated the apartment interiors.
Our investment plan is to cosmetically renovate and reposition the asset with contemporary capital improvements and focused marketing to attract a higher income tenant demographic.
The purchase price of $12,500,000 or $74,850 per unit represents an 8.5% cap rate on stabilized income. The Ogden submarket vacancy rate is 2.2% and the Gate at Canyon Ridge apartment competition has a 1.5% vacancy rate. During the first year, we foresee a higher turnover rate due to the unit upgrades and rent increases that we will be implementing. As a result, the quarterly distribution of cash flows for Equity Investors in the first year may be less than the 6% accrual. Our intention is for a shorter term hold and anticipate a sale in the third investment year.
We will be raising Equity Capital in the amount of $3,010,000 and Preferred Capital in the amount of $1,000,000. Escrow is scheduled to close on January 12, 2017. Commitments will be honored as evidenced by the completed Signature Page and Accredited Investor Questionnaire which is included in the offering package. Checks should be written to “WLA PREFUNDING”