Philadelphia Multifamily Fund II
WHO WE ARE
Investco LLC (the Sponsor) was formed to allow the principals to invest in lucrative small-scale real estate projects in markets where they have intimate knowledge. Investco is managed and operated by seasoned professionals that have extensive experience identifying and investing in real estate projects. Investco is a small group of like-minded investors focused on results. Our mission is to identify, acquire, and develop class A&B multifamily assets in close proximity to transportation and major employment centers in the suburbs of Philadelphia, PA, providing an average rate of return of 15% to our investors.
Investco focuses on acquiring and pooling together smaller unit count multifamily and mixed use assets. The principals will invest up to 20% in each asset acquired by the Company and sign for any recourse debt, as required.
The principals in Investco have more than 50 years’ combined experience in the real estate and construction industries. The principals have worked in leadership positions for some of the nation’s top private investors, developers, brokerage houses, and managers of large-scale real estate projects.
The Sponsor previously raised capital on EarlyShares for a Residential Fund which focused on acquiring 1 to 6 unit multifamily assets in the Philadelphia market. Please click on the link below to view the funded offering.
OUR SELECTION CRITERIA
The Philadelphia Metropolitan Area is the focus of Philadelphia Multifamily Fund II LLC due to its historically stable rental rates and high occupancy (>95%). The Managing Member also owns and manages several other residential assets in close proximity. See additional supporting information under Area/Location and within the demographics and market overview information included in the Supporting Documentation.
In general, Investco LLC and its Members use the following factors to guide their selection process:
1. Suburban Philadelphia PA and surrounding Metropolitan Area.
2. Internal rate of return in excess of 15%.
3. Minimum cash on cash return of 10%.
4. Value add opportunity through rent growth, management efficiencies, unit upgrades and attractive financing.
5. Walking distance to public transportation.
6. Low maintenance exteriors.
7. On site washer and dryer facilities.
8. Stable tenant population.
Investco LLC (The Sponsor) plans to acquire up to 100 multifamily and mixed use units in the Philadelphia Metropolitan Area (MSA). All assets for the fund have been identified and the Sponsor is currently under contract for Rosedale Apartments and 1511 Pine Street. Fixed-rate financing in the amount of $5,062,500 will be used as part of the capitalization to acquire the properties. Lender commitments have been received for the first two properties under contract. Sponsor will personally guarantee any recourse required by lenders.
The Fund entered into a property management agreement with the Sponsor. The Fund will pay the Sponsor a management fee of 4% per year of the collectible rents and other revenue. The Fund will also pay the Sponsor an acquisition fee of 0.5% for all buildings acquired by the Fund.
Philadelphia is located in the northeastern United States at the confluence of the Delaware and Schuylkill rivers, in the southeast corner of the state of Pennsylvania. The city and its surrounding suburbs are often referred to as the “Delaware Valley” and are made up of five counties: Philadelphia, Delaware to the south, Chester to the west, Montgomery to the north, and Bucks to the northeast.
Philadelphia is fifth largest MSA in the US and is located less than a two-hour drive from both New York City and Washington DC; the city is a hub of activity for all forms of transportation. The city is home to the Philadelphia Stock Exchange and several Fortune 500 companies, including cable television and internet provider Comcast, insurance companies Colonial Penn, CIGNA and Lincoln Financial Group, energy company Sunoco, food services company Aramark and Crown Holdings Incorporated, chemical makers Rohm and Haas Company and FMC Corporation, pharmaceutical companies Merck and GlaxoSmithKline, Boeing Rotorcraft Systems, and automotive parts retailer Pep Boys. Philadelphia’s economic sectors include information technology, manufacturing, oil refining, food processing, health care and bio-technology, tourism and financial services. It is one of the largest health education and research centers in the United States.
Philadelphia MSA – Employers
MARKET – DEMOGRAPHICS
Please see the Philadelphia Metropolitan Area Market Overview Summary Report and the Philadelphia Metropolitan Area Demographics Summary under the Supporting Documents section of this offering.