This project has reached its funding target

Beacon Hill Apartments

Rivergate RE
Orlando, FL

Equity Investment Opportunity for the purchase of a 192-unit Multi-Family Property in Orlando, FL.

Posting
Equity

Total Raise: $2,728,480
Min. Investment: $25,000
Property Type: Multi-family
Est. Investor IRR: 16.50%
Est. Cash-on-Cash: 9.17%

Rivergate Partners represents over 30 years of executive leadership in the multi-family market.

+/- 18.53% est. Avg Annual Project Level Return based on a 5 yr holding period.

+/- 16.14% est. Avg Annual Investor Return based on a 5 yr holding period.

Management
- Jay Massirman
  President
  Jay serves as President of Rivergate Management, an experienced apartment management and investment firm headquartered in Miami, Florida. Massirman has executed on management assignments across the Southeast and offers a comprehensive range of services. A multi-disciplined real estate firm, Rivergate Management specializes in enhancing multi-family values by utilizing its core marketing, management and repositioning capabilities. The combined experience of Rivergate's principals represents the sales, financing development, construction, and property management of over 100,000 multi-family units. Jay has been investing, developing, and managing real estate since 1984. Product types include: self-storage, hotels, apartments (tax credit & market rate), condo conversions and land entitlement. He has invested directly and with sponsors in a variety of real estate projects. Prior to forming Massirman Group in 2007, Jay spent 20 years with CBRE, a global real estate service provider. As a Vice Chairman he was a perennial top producer and actively involved in the sale and financing of more than 400 transactions including over 76,000 multifamily units. Jay received his BBA from the University of Miami, Coral Gables, FL, in Finance and Accounting.
- Oscar J. Vila
  President of PSMG
  Oscar Vila has practiced law for 22 years focusing on corporate law, mergers and acquisitions and corporate law on behalf of a diverse group of domestic and international clients. The Firm of Vila, Padron & Diaz, P.A., practices throughout Florida, in all state courts as well as the Federal Court for the Southern District of Florida. Education: Southern Methodist University (B.S. Economics & Finance, 1987); University of Miami (J.D. 1990); University of Miami LLM in taxation post-graduate course work (1990-1991). Admitted to: Florida Bar, and U.S. District Court, Southern District of Florida. Memberships: Attorneys’ Title Insurance Fund, American Trial Lawyers Association. Foreign Languages: Spanish and French. Member of advisory Board of Directors for Stonegate Bank, N.A. and Board of Directors for Master Concessionair, LLC. Oscar owns a multi-housing property management company (Property Solutions Management Group, LLC) which manages his portfolio as well an additional 1,500 units located in South Florida, on behalf of third parties. Oscar has significant experience in private equity investments in varied industries, including healthcare, real estate, oil and gas upstream projects. Currently he sits on the board of Master Concessionair, LLC (MC), and directs a family investment vehicle controlling 35% of the interests in MCA, a diverse airport concessions business with operations in four Southeastern US airports.
- Glenn Rand
  Director of Property Management
  Glenn currently serves as Director of Property Management in a strategic alliance with Rivergate. Rand was previously with Pinnacle and Alliance Residential where he served as Management Partner(s) for the Southeast/Mid Atlantic Regions, responsible for operational oversight and new business in Chicago, Florida, Georgia, North and South Carolina, Tennessee, and the Washington, D.C. area. Beginning his career in Real Estate with Trammell Crow Residential Services, Rand held several positions over nine years, including Chief Operating Officer of the Trammell Crow North division, responsible for strategic planning, acquisitions, development and third party management of over 25,000 multi-family units. He then spent eleven years with Archstone Real Estate Investment Trust, responsible for one-third of U.S. operations for Archstone, overseeing management of over 30,000 units, and holding numerous positions including President and founder of Archstone Management Services. He also planned and executed the sale of Archstone Management Services to Gables Residential. Rand joined The Milestone Group as an Acquisition Officer in 2006, responsible for the U.S. East coast, creating opportunities for Milestone through his Institutional, Broker and personal relationships. Mr. Rand was highly regarded for his Lease Up experience. He was involved at Archstone and Tramell Crow Residential in over 200 lease up properties, with over 100 coming in Florida alone. Mr. Rand was involved in leasing up over 75 High rises in his years with Archstone. With over twenty-five years of real estate property management experience, Rand has served four years on the Advisory Board at Virginia Tech in its RPM (Residential Property Management) Program, and spent five consecutive years as Chairman of the Operating Committee during his tenure with Archstone.
- Robert Band
  CFO & CPA
  Robert Band, CPA, is Interim CFO of Rivergate Management and Managing Director and Founder of CFO and Company, where he directs the firm's business development, team development and client services. Prior to founding CFO and Company in 2011, Mr. Band served companies with up to $200M in revenues in his roles as CPA auditor, Controller and for the past 18 years, as Chief Financial Officer. He has served both public and private companies in such industries as real estate development and management, construction, pharmaceutical manufacturing, importation and distribution, staffing and other business services. His prior companies include Kaufman Rossin & Co., CPA's, Catalina Lighting (NYSE), Royce Laboratories (NASDAQ) and Midgard Group. In his CFO and Controller roles, Mr. Band consistently streamlined and strengthened accounting and finance functions, secured complex debt and equity financing, and managed treasury, information technology, human resources and risk management. His experience includes SEC reporting, investor relations, strategic planning, merger and acquisition due diligence and integrations, crisis and turn-around management, loan workouts, cost cutting and facilities consolidation. A consummate team player and problem solver, he is skilled at working smoothly with different groups and bringing them together to achieve common goals. He is an effective leader known for building trust through honesty, open communication, fairness, professionalism and a commitment to excellence. Mr. Band received a B.S in Accounting from the University of Florida.
- Casper "CJ" Maier, CPM
  Regional Vice President
  C.J. is a seasoned professional with a decade of expertise in managing Multifamily and Commercial Properties including market rate, distressed, affordable and value add properties. C.J. was most recently a Senior Regional Project Director for numerous projects throughout Florida. His background includes (but not limited to): acquisitions, underwriting/performing due diligence, hiring vendors/contractors, marketing and implementing long-term goals for the asset. He creates cash flow models, capital plans, marketing and leasing plans, and prepares rental and association budgets and sensitivity analyses. He is very skilled in managing general contractors, construction managers and internal construction for multi-million dollar construction and renovation projects. He has served in a capacity of President for various condo and HOA boards of directors for new construction and conversion properties. He has earned a Construction Management Certificate from Florida Atlantic University and a Master's Certificate in Project Management from Nova Southeastern University. He has a Florida Real Estate Broker's License - #690443.
- Carolina Battafarano
  Marketing & Operations Manager
  Ms. Battafarano is the Marketing & Operations Manager for Rivergate Management. She is responsible for the day to day operations for Rivergate's Southeast Florida office. Her responsibilities include: database management, accounts payable, payroll, grant report entry, HR, web design and implementation, marketing and creating organizational and program budgets and other related administrative functions. Prior to joining Rivergate Management, Ms. Battafarano worked for Massirman Group as Director of Marketing and Operations. Ms. Battafarano´s prior experience includes serving as Marketing Coordinator and Executive Assistant in the Acquisition Department for Related Group. She began her tenure with the President of Rivergate, Jay Massirman in 2008. She previously served as Operations Manager for Unitel Global. Ms. Battafarano is a licensed real estate Sales Associate in the State of Florida and fluent in Spanish, speaking and writing. Carolina received her BS from Faculty of Medicine of University of Salvador, Buenos Aires, Argentina.

This Offering was posted by the Issuer to the EarlyShares platform. EarlyShares typically receives cash compensation from issuers posting public Rule 506(c) offerings in exchange for services provided (these may include customized offering portal, deal tracking dashboard, community engagement and investor communication tools, transaction and document management, access to EarlyShares investor database, privacy and access controls, investor verification services, and general marketing). Specific details regarding compensation are accessible once the Issuer grants access to view the private section of this Offering. All elements of the Offering - including the Legal Docs, Investment Terms, and Due Diligence - were the responsibility of the Issuer. EarlyShares and its partners have conducted only a qualification screening and regulatory compliance check on the issuer.

Who We Are

Rivergate Partners is a joint venture between two Miami based multi-housing firms concentrating its efforts on creating value, stable cash flows and working to generate outsized returns for its stakeholders. The Partners in the venture are Oscar Vila and Jay Massirman. Oscar has been practicing law for over 22 years combined with owning, operating and advising on real estate and other private equity transactions. Oscar’s operating platform is PSMG. At the same time, in the years since 1984, Jay has been involved in hundreds of advisory transactions and principal transactions and operates as the Rivergate Companies. Together they co-manage acquisitions through Rivergate Partners|PSMG. (“Rivergate Partners”)

Rivergate Partners believes the current economic environment offers a truly unique opportunity to acquire attractive multi-family assets and generate superior risk adjusted returns as a hedge against inflation. Our business model is centered on a “preservation of capital” philosophy for our investors driven by strong, stable cash flows with the potential for capital appreciation. We accomplish this by working to acquire stabilized, income producing multi-family assets in markets that have exhibited, and are projecting, healthy economies. Rivergate Partners' acquisition focus is primarily on under-the-radar “B” grade value-add multi-family assets in locations that feature strong infill dynamics, established competition, population in-migration, job growth, and high barriers to entry.

Our goal is for our investments to create current cash flow for our investors. The principals of Rivergate Partners invest in each asset acquired by the Firm.

Rivergate Partners Asset & Property Management

Rivergate Partners seeks to acquire multi-family rental communities throughout the Sunbelt States, on behalf of high net worth and institutional investors. Currently, Rivergate Partners owns and operates 5,000 plus apartment units.

Rivergate Partners' goal is to ensure each asset under management achieves and hopefully exceeds the underwritten proforma of net operating income and investor returns. We do this by focusing on day-to-day on-site operations, financial performance, market analysis, and investor relations.

Internal Operations – Every week, key management reviews occupancy trends and market conditions to enable proactive market response. In addition, weekly reports are produced for occupancy and collection snapshots across all properties.

Quarterly Financial Review and Investor Reporting – Investors receive quarterly reports highlighting detailed financials, capital improvements, marketing/leasing efforts, and budget variance.

The Property

The property is located at 7492 Beacon Hill Loop, Orlando, FL 32818. It is comprised of 192 apartments with the following characteristics:

Common area amenities include: community swimming pool, children's playground, community clubhouse and two parking spaces per unit.

Unit amenities include: spacious floor plans, washer/dryer hooks-ups, central heat and air, and kitchen with oven, dishwasher and refrigerator.

Acquisition Costs

Sources & Uses

Capital Expenditures

Aerial Map

Sub Market Overview

Economy

Orlando is a top vacation destination and home to Walt Disney World. It has also become a popular site for business meetings, with one of the nation’s largest convention centers. Over 55 million visitors traveled to Orlando in 2013, driving the hospitality employment sector to account for 21 percent of all area jobs.

Employers

For over 30 years, Orlando has been identified with Disney World. In addition to six Disney theme parks, the area contains attractions such as SeaWorld and Universal Studios. Many of the area’s major employers are tourism-related.

Demographics

Expanding employment opportunities will draw a steady stream of workers into the metro, pushing population growth to an average of 1.6 percent annually through the next five years. Much of the region’s population growth in recent years occurred in the areas south of Orlando and Walt Disney World and west of Kissimmee, spurred by the completion of SR-417 and improved access to Interstate 4. The prevalence of lower-paying tourism jobs, however, will keep the median household income below the national rate and prevented many residents from purchasing a home.

Geography: 5 Miles

Population

In 2012, the population in within a 5 mile radius of Beacon Hill was 243,482. The population has changed by 17.46% since 2000. It is estimated that the population in this area will be 254,478 five years from now, which represents a change of 4.51% from the current year. The current population is 47.9% male and 52.0% female. The median age of the population in the area is 33.0; compare this to the U.S. average which is 37. The population density in this area is 3,329.28 people per square mile.

Households

There are currently 86,431 households in this selected geography. The number of households has changed by 18.11% since 2000. It is estimated that the number of households in the area will be 91,072 five years from now, which represents a change of 5.36% from the current year. The average household size in this area is 2.79 persons.

Income

In 2012, the median household income for the location was $42,174; compare this to the U.S. average which is currently $53,535. The median household income for the area has changed by -0.82% since 2000. It is estimated that the median household income in this area will be $46,228 five years from now, which represents a change of 9.61% from the current year.

The current year per capita income in the area is $21,494, compare this to the U.S. average, which is $28,888. The current year average household income in the area is $60,302; compare this to the U.S. average which is $75,373.

Race & Ethnicity

The current year racial makeup of this area is as follows: 39.78% White, 46.36% African American, 0.41% Native American and 4.46% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96% Native American and 5.01% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 16.17% of the current year population in the area. Compare this to the U.S. average of 16.55%.

Employment

In 2012, there were 89,431 employees in this area, also known as the daytime population. The 2000 Census revealed that 55.8% of employees were employed in white-collar occupations in this geography, and 44.1% were employed in blue-collar occupations. In 2012, unemployment in this area was 6.88%. In 2000, the median time traveled to work was 28.3 minutes.

**This information has been provided by Marcus & Millichap Real Estate Investment Services from the Property Marketing Package.