Salt lakes real estate

Tokenized multi-family real estate investment with a target IRR of 16.8%

A tokenized real estate investment offering is now available for a multi-family townhouse community in the Salt Lake City suburb of Ogden, Utah.

The Ranches is a 79 townhouse rental community built in 2018. It is located in an economically growing community 40 minutes north of Salt Lake City. The average home size is 1,245 square feet, and community amenities include a gym, playground, dog park, and common areas.

The symbolic investment is offered via the HoneyBricks platform with a minimum investment of $1,000.

The market

Economic growth is driving real estate demand in the region, which has seen an influx of young professionals attracted by the job market, affordable living costs and access to outdoor recreation. Ogden is expected to see a 12% increase in population, a 10.6% increase in jobs and a 12.5% ​​increase in wages over the next five years.

Investment Highlights

The community operator, Orion Real Estate Partners, plans to spend $974,000 on renovations. Planned upgrades include $6,000 per unit dedicated to kitchen upgrades and an additional $4,000 for exterior and commons upgrades. Orion expects the improvements to allow the rent to increase to a market rate of $1,950.

Orion is set to begin construction in November on a second phase of the project – an 87-unit addition to the community. A third phase is planned. The owners of the project believe that the increase in the number of units will increase the attractiveness of the asset for institutional investors when it comes up for sale.

  • Minimum investment: $1,000 (1 token)
  • Internal rate of return (IRR) target: 16.8%
  • Multiple of target equity: 1.6x
  • Target cash yield: 4.2%
  • Target investment period: three years

Case Sponsor

Orion Real Estate Partners was founded by experienced real estate operators specializing in the acquisition and management of multi-family investment projects in the western United States. Principal partners have been involved in more than $3.5 billion in transactions involving 18,000 multi-family units.

Orion manages 2,100 units valued at over $420 million. Since 2016, the group has acquired and managed 2,600 units grossing over $400 million in Austin and San Antonio, Texas; Provo, Utah; and Denver.

Learn more about HoneyBricks’ offerings at Benzinga Alternative Investments.

Mary Cashion

The author Mary Cashion