16.8%
IRR
|
4.2%
Cash on Cash
|
1.6X
Equity Multiple
The Ranches is a 79-home, townhome community, built in 2018 and located in Ogden, a dynamic suburb 40 minutes north of Salt Lake City.
A Thriving Location: Ogden has projected 5-year double digit job and wage growth of 10.6% and 12.5%, respectively. The population is also projected to grow at 12% over the next 5 years, far outpacing the national growth projection of 4%. Ogden’s attractive job market, affordable cost of living and access to outdoor recreation has resulted in Ogden seeing an influx of young professionals.
Rent Growth: The value add business plan will invest a total of $974,000 in the property, pushing rents to $1,950. Recent leasing is supportive of this plan with unrenovated rents averaging $1,889 (+13.6% vs in-place).
Low Interest Rate Risk: A combination of appealing location, new vintage, moderate capital plan risk and strong recent leasing is further enhanced by a favorable debt strategy, with the Sponsor securing a 4.36% (5 years interest-only) loan.
Tony Konstant
Head of Real Estate | HoneyBricks
About the sponsor
Orion Real Estate Partners (“Orion”) is a private real estate investment firm with offices in Los Angeles, Denver and Austin. Orion was founded by experienced real estate operators to acquire and manage multifamily investments in the Western United States with a focus on value-add opportunities with strong in-place cash flow.
Utilizing proven institutional processes to source and manage investments, Orion identifies assets with capital and operational repositioning opportunities to generate attractive risk-adjusted returns for our investors.
Orion’s principals have 50 years of combined industry experience and have been involved in over $3.5 billion of transactions encompassing over 18,000 multifamily units.
Since 2016, transaction volume has totaled over 2,600 units in Austin, Denver, Provo and San Antonio with a gross value of over $400 million.
Our investment team has invested over $5 billion across 1,000s of real estate assets throughout the US.
Learn about HoneyBricks and investing in tokenized real estate
Our mission is to bring real estate investing into the digital world, and we do this by tokenizing high-quality, US real estate investments onto the Polygon network.
Real estate tokens on the HoneyBricks platform represent ownership in underlying real estate investments. Polygon is an Ethereum-based blockchain scalability platform and framework for connecting and building blockchain networks.
Real estate tokenization comes with a number of benefits, which include:
The tokens available on the HoneyBricks platform represent a membership interest in an LLC that holds the investment interest in the underlying property, as it is not possible to tokenize the properties directly.
The Real estate investments are placed in an LLC structure which is then tokenized for investors by HoneyBricks. A HoneyBricks entity is the Managing Member of the LLC, which each hold separate interests in the real estate investments. This structure allows individual investments to be legally independent and ensures individual investments are not legally related to each other.
A HoneyBricks smart contract provides a legal wrapping to the LLC's membership interests that allow them to be represented by cryptographic tokens. The token then conveys the underlying ownership of the membership interest and therefore the property investment.
There are two fees paid by HoneyBricks token holders:
1. To Sponsors: for their sourcing, diligence, operations and management of the asset
2. To HoneyBricks: 1.0% of the contributed capital of the token value each year for token and platform management.
A detailed breakdown of fees is outlined in the offering summary provided to interested investors.
The HoneyBricks Secondary Market is an electronic bulletin board that allows eligible parties to execute a transfer of tokens.
The token transfers are completed through a smart contract that clears and settles the transaction on a wallet-to-wallet basis, directly on the blockchain, and does not require a third-party custodian.
Tokens are eligible to be listed on the bulletin board after 12 months based on SEC Rule 144, which allows public resale of restricted and control of securities if a number of conditions are met, including the 12-month holding period.
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