Metro Atlanta Property to Add to Grocapitus’ $940 Million Property Portfolio
FREMONT, CALIFORNIA, USA, September 21, 2022 /EINPresswire.com/ — Real estate firm Grocapitus Investments has launched a new apartment-focused investment fund to capitalize on the growing number of tenants resulting from homeownership becoming unaffordable due to rising house prices and interest rates mortgages.
The news from Grocapitus Investments GRO Value-Added Multi-Family Income Fund identified the first value-added multi-family project for the fund, Monarch Villas in the Atlanta metro area.
Grocapitus Investments Founder and CEO Neal Bawa described Monarch Villas as a turnkey asset with significant upside remaining. With nearly $3 million spent on interior and exterior capital improvements since 2017, averaging $23,000 per unit, the property is perfectly primed for further growth.
The property exit strategy includes an option to refinance in two to three years and a disposal in four to five years.
“With four multi-family projects in our portfolio in the Greater Atlanta area, it’s a metro we follow in depth. And we love it as much today, if not more, than in 2018 when we made our first-ever multifamily investment in Atlanta,” Bawa said.
Among the advantages of investing in the GRO Value-Added Multi-Family Income Fund are the diversification of its portfolio among several projects and an increased level of exposure to investments in a variety of markets and asset classes, which translates with a perfect balance between risk and return.
“By spreading your investment across multiple properties, you can expect your returns to be more stable. Funds are a great way to mitigate risk without sacrificing returns,” Bawa said.
Additionally, the new fund has diversified business plans, offering the ability to invest in different projects that include various holding periods and cash flow potential.
Class B investors in the fund may receive cash flow and will also have the opportunity to participate in final price appreciation upon sale, refinancing and additional lending.
Additionally, the fund offers tax advantages and potential accelerated depreciation, including the ability for investors to exchange 1031 for one or more of the underlying properties.
The GRO fund also has a streamlined investor process so that investors only need to sign one set of documents to spread equity across multiple properties.
Finally, 2022 is the last year for investors to take advantage of a 100% amortization bonus under the Tax Cuts and Jobs Act of 2017 (TCJA). Grocapitus maximizes all available options to maximize realized income and tax benefits for investors and projects a loss or write-off of $60,000 to $70,000 on a $100,000 investment for fund projects that close in 2022 .
Bawa is a technologist universally known in real estate circles as the “multifamily mad scientist”. In addition to being one of the most sought-after speakers in the field of commercial real estate, Bawa is a data guru, process nerd, and outsourcing expert. He views his billion-dollar multi-family portfolio as a continuous experiment in efficiency and optimization.
The “mad scientist” lives by two mantras. His first mantra is “We can only manage what we can measure”. His second is “Data beats gut feeling by a million miles”. These mantras and a dozen other disruptive beliefs generate profits for its more than 700 investors.
Grocapitus owns or manages a portfolio of over $940 million, providing reliable passive income from tax-efficient commercial real estate.
For more information about Grocapitus Investments and its GRO value-added multi-family income fund, visit grocapitus.com/grofund.
About Grocapitus Investments
Grocapitus Investments exists to source and present rock solid commercial real estate investments to our highly valued capital partners. In addition to producing attractive risk-based returns for our investors, we strive to improve the lives of every tenant, team member and individual who comes into contact with our business.
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