Financial Snapshot (Projected 2026)

• Total Capital Requirement: $342,000 (All-Equity Build)

• Build Standard: $165/sqft (Elevated Builder-Grade)

• Projected Monthly Income: $3,300 ($1,650/unit)

• Net Operating Income (NOI): $25,740 (Assumes 10-Year Tax Abatement)

• Unlevered Yield: 7.5% – 8.1% (Market Average: 5.5%)

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The "Capital Recapture" Exit

This is a 36-month liquidity play.

1. Phase 1: Groundbreak and stabilize (No debt risk).

2. Phase 2: Capture 10-Year Tax Abatement (Maximized Cash Flow).

3. Phase 3: Cash-out refinance at 70% LTV based on a ~$410k+ appraisal.

4. The Result: Return ~$280,000+ of principal to the investor while retaining 100% ownership in a cash-flowing, debt-covered asset.

Why Indianapolis?

Indianapolis remains one of the most stable rental markets in the U.S., with 2025 rent growth outpacing the national average. Unlike smaller markets, Indy offers deep liquidity—this asset can be sold in 48 hours to any institutional or local buyer.

Financial Pro Forma (The Portfolio Math)

Metric Portfolio Totals Notes

• Total Capital Commitment$3,200,000All-Equity Build (No Debt Risk)

• Gross Revenue (Projected)$348,00020 Units @ $1,450 Avg. Rent

• Net Operating Income$276,234 Assumes 10-Year Tax Abatement

• Unlevered Yield on Cost8.6% – 9.8%Depending on City Grant Levels

• Appraised Market Value $4,250,000+Exit at 6.5% Cap Rate

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The "Capital Recapture" Exit

This is a 36-month liquidity play designed to return investor principal while maintaining 100% of the asset’s long-term equity.

• Month 1–18 (Development): Execute simultaneous 10-lot build using all-equity capital. Zero interest-rate risk or debt-service burden during construction.

• Month 18–30 (Stabilization): Lease up 20 units to the local "Missing Middle" workforce (Healthcare/Industrial). Secure 10-year tax abatement to maximize Net Operating Income (NOI).

• Month 36 (The Exit): Execute a 70% LTV Cash-Out Refinance based on a stabilized market valuation of $4.25M+ (6.5% Cap Rate).

• The Result: Return ~$2,975,000 in cash to investors.

  • Investor Result: 100%+ of original capital returned within 36 months.

  • The Portfolio: Investors retain 100% ownership of a cash-flowing, debt-covered, tax-abated asset with virtually zero basis remaining in the deal.

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Financial Snapshot: The Columbus Arbitrage

Metric Portfolio Totals Notes

• Total Capital Commitment$3,200,000All-Equity Build (0% Construction Debt)

• Public Subsidies (Land/PACT/Fees)($650,000)Includes $40k/unit PACT Grant 

• Net Investor Basis$2,550,000The actual "Cost-to-Build" net of incentives

• Annual NOI (Stabilized)$319,20020 Units @ $1,900/mo (Abated Taxes)

• Unlevered Yield on Cost12.5%Market-leading yield for Tier-1 Assets

​​The "Capital Recapture" Exit (36-Month Liquidity Play)

In Columbus, the spread between "Cost to Build" and "Market Value" is the widest in the state.

• Month 1–18 (Development): Execute a 10-lot simultaneous build. Our all-equity position eliminates the interest-rate risk that is currently stalling local competitors.

• Month 18–30 (Stabilization): Lease-up to e workforce . Secure the 10-year PACT-related tax abatement.

• Month 36 (The Exit): Execute a 70% LTV Cash-Out Refinance based on a stabilized market valuation of $5.1M+ (6.25% Cap Rate).

• The Result: Return ~$3,570,000 in cash to investors.

  • Investor Result: 110% of original capital returned within 36 months.

  • The Portfolio: Investors retain 100% ownership of a "Class A" asset with negative basis (all original money out, plus a profit kicker, while still owning the units).

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