APEX ACCESS FUND LLC

  • Summary

    Summary

  • Strategy

    Strategy

  • Market

    Market

  • Team

    Team

  • Record

    Track Record

Apex Access Fund LLC

Investment Overview

  • Summary

    Summary

    Fund Overview

  • Strategy

    Strategy

    Investing in Multifamily Assets

  • Market

    Market

    ApexOne Investment Footprint & Case Studies

  • Our Team

    Team

    Real estate professionals with 150+ years of experience

  • Track Record

    Track Record

    ApexOne Historical IRR over 20%

Investment Summary

Fund Type

fund

Multi-Family & Workforce Housing

ApexOne Targeted Return

13-15%

Distributions

Quarterly

Min. Fund Investment

$50,000

Hard Close Date

May 29, 2020

Limited spots available to invest

Closed

ApexOne Investment Overview

ApexOne Multifamily Fund III, LP (“ApexOne”) is seeking to raise up to $150 million in capital. ApexOne has already closed on over $100 million and acquired 8 properties. ApexOne is targeting a net IRR return to investors of 13% to 15%. ApexOne invests in existing value-added multi-family and workforce housing properties across the United States. ApexOne is headquartered in Houston with additional offices in Chicago, West Palm Beach and Phoenix. ApexOne requires a minimum investment of $500,000 and provides an 8% preferred return.

  • Performance

    Net IRR of 29% for Fund I on Realized Investments
    Net IRR of 20% for Fund II on Realized Investments
    Targeted 13%-15% Net IRR for Fund III

  • Experience

    Over 150 Years of experience
    Experience on $11 Billion of Acquisitions

  • Investments

    $48 million in Fund III Investments as of 12/31/2019
    $1.1 Billion in Aggregate Purchase Price by ApexOne
    $350 Million in Assets Under Management by ApexOne

Apex Access Fund LLC

Apex Access Fund LLC (the “Access Fund”) is raising capital to invest in ApexOne. The Access Fund uses a “feeder fund” structure by aggregating up to 100 investors at a minimum investment of $50,000 each. The Access Fund provides access to invest in ApexOne, for which a direct investment requires a minimum investment of $500,000.

The Landings at Lake Gray

West Jacksonville Florida

Invest Now

Preserve at Bartlett

Bartlett Tennessee

Invest Now

The Preserve at Southwind

Memphis Tennessee

Invest Now
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Key Considerations

  • Access to an Institutional Fund - While ApexOne requires a $500,000 minimum investment, the Access Fund provides individual investors with access to ApexOne with a $50,000 minimum investment.
  • Experience - ApexOne is a highly experienced investment manager with 150 years of combined senior leadership experience and over $11 billion of real estate acquisitions.
  • 8% Preferred Return – The Access Fund has negotiated to receive a 8% preferred return from ApexOne, rather than the 8% preferred return for direct investors meeting the $500,000 minimum subscription level. ApexOne is targeting a net IRR paid to the Fund of 13% to 15%.
  • Proven Track Record – ApexOne’s two prior funds achieved an average 29% net IRR and 20% net IRR on realized investments.
  • Strong Performance of ApexOne Fund – ApexOne has completed $48 million of acquisitions in Fund III already and is targeting a 13% to 15% net IRR.
  • Attractive Investment Niche – ApexOne has expertise in sourcing, screening, acquiring and selling workforce and student housing assets nationwide and is one of the top 20 investors in student housing assets.
  • Extensive Institutional Relationships – ApexOne has extensive JV Partner relationships including ANICO, Balfour Beatty, Crow Holdings, First Capital, Paravest, Rockstreet and Torchlight.

ApexOne Fund Overview

  • ApexOne is a dedicated real estate investment firm that specializes in multifamily and student housing properties.
  • ApexOne is headquartered in Houston with additional offices in Chicago, West Palm Beach and Phoenix.
  • The ApexOne senior partners have more than 130 years and $10B of combined multifamily and other real estate sector expertise; the partners were former executives with JMB Realty, Heitman, Trammel Crow, PM Realty Group, Adams LaSalle, Hendricks & Partners, and JPI.
  • ApexOne, directly and along with a series of institutional and private equity partners, have purchased more than 25 assets nationwide since 2011. Joint Venture partners have included Balfour Beatty, Crow Holdings, Behringer/Harvard, Hudson Capital Partners, Rockstreet Partners and First Capital Advisors.
  • ApexOne’s diverse experience has included advising, purchasing and joint venturing across a portfolio of Class A, Class B and Class C properties specific to the multifamily and student housing segments.
  • ApexOne's first fund incorporates 13 properties (2,352 units / 3,442 beds) in a nationwide real estate footprint with a 60/40 mix of multifamily/student housing Class A-/B+ assets; 8 Joint Venture Partners

ApexOne Service Partners

  • Banking & Escrow Agent

  • Auditor & Tax Advisor

  • Third Party Administrator

  • Fund Counsel

ApexOne Strategic Partners

    • Berkadia
    • Behringer/Harvard
    • First Capital Advisors
    • Cushman & Wakefield
    • Balfour Beatty Communities
    • Rockstreet Partners
    • Asset Campus Housing
    • Crow Holdings
    • Hudson Partners
    • Peak Campus
    • Hawthorne Realty Partners
    • 18 Capital Group
    • Alliance Residential
    • CBRE
    • Engineered Tax Service
    • ZRS (Zom Realty Services)
    • ARA Newmark
    • JLL
    • AXIOMetrics
    • Liberty Trust
    • National Financial Services

This list represents a partial list of vendors, property partners and JV partners that have worked or are currently working with ApexOne. These entities may or may not be associated with the ApexOne Growth and Income Fund II.

Access Fund Service Provider


  • Administrative, Tax and Accounting Services

Why Invest Through a Fund

  • FAVORABLE FINANCING

    ApexOne will take advangtage of a historically low interest rates and favorable financing terms at a time when basic multifamily investment fundamentals are showing continued strength.

  • INSTITUTIONAL OVERSIGHT

    As an institutional investment manager, ApexOne will review every aspect and decision related to the acquisition, finance and ongoing operations of the properties.

  • PORTFOLIO DIVERSIFICATION

    The ApexOne Fund will be a diversified group of multifamily and studenty housing properties.

Why Real Estate?

  • Diversification

    Real estate investments are considered a non-correlated alternative asset class.

  • Cash Flow & Appreciation

    Stabilized real estate generally benefits from regular and predictable cash flow.

  • Low Interest Rate

    Historically low interest rates may allow real estate to generate higher cash flows.

  • Income Tax Treatment

    Ordinary income can be minimized through the use of an accelerated depreciation strategy that may generate passive losses.

  • Hedge Against Inflation

    Rents, land values and replacement costs typically move upward with inflation.

  • Multiple Exit Strategies

    Real estate assets can be disposed of through individual or portfolio liquidations, asset refinancing, mergers, or a “roll up” through a portfolio capitalization.

ApexOne Overview

ApexOne makes equity investments in multifamily residential housing properties requiring re-positioning or upgrades and located in growth markets. ApexOne will concentrate primarily on investing in existing, value-added workforce housing complexes across the United States. Overall market focus is primarily in secondary markets in growth areas, avoiding top tier cities and schools, targeting areas with expanding job opportunities and populations. ApexOne focuses on core, middle America growing communities with existing footprints they can enhance for immediate occupancy and rental growth.

Investment Strategy

To acquire quality, under-performing assets in growth markets where a value-added program will enhance returns to investors and the quality of life for the residents; purchase 15-25 existing workforce assets in non-primary markets.

ApexOne Fund Objectives

  • Capital Gains

    Generate consistent, industry leading returns for our investors & offer a monthly yield.

  • Investment Types

    Assist in supporting the growing workforce housing demand; provide an improved living experience for residents without pricing them out of their communities.

  • Distributions

    Avoid the environmental impact associated with new development; enhancing facilities with environmentally friendly attributes that reduce costs and our footprint.

ApexOne Background

  • ApexOne senior partners have more than 150 years and $11 billion of combined multifamily and other real estate sector experience.
  • The partners were former executives with JMB Realty, Heitman, Trammel Crow, PM Realty Group, Adams LaSalle, Hendricks & Partners, and JPI.
  • ApexOne’s diverse experience has included advising, purchasing and joint venturing across a portfolio of Class A, Class B, and Class C properties specific to the multifamily and student housing segments.
  • ApexOne is headquartered in Houston, TX with additional offices in Chicago, West Palm Beach, and Phoenix.
  • Directly and along with a series of institutional and private equity partners, ApexOne has purchased more than 25 assets nationwide since 2011.
  • Joint venture partners have included Balfour Realty, Crow Holdings, Behringer/Harvard, Hudson Capital Partners, Rockstreet Partners, and First Capital Partners.

Opportunity

Job growth and wage stagnation have combined to create a growing workforce population in need of quality housing. The opportunity exists to enhance communities for residents and deliver compelling returns for investors. ApexOne invests in a portfolio of workforce housing and select student housing assets.

Approach

Engage best in class on-site management; introduce environmentally friendly upgrades and community oriented common area enhancements. Efficiently manage capital investment by making enhancements in stages and only as necessary to move rents up to meet area norms while remaining affordable to workforce residents.

Return Targets

Diverse workforce and student housing investment portfolio targeting a 3-5 year buy/fix/sell proforma. ApexOne is targeting an annualized yield of 7-9% distributed monthly. Distributions are quarterly during the first year of fund life. ApexOne is targeting a total net investor returns (IRR) of 13-15%.

The Case for Workforce Housing

Why Student Housing

Student housing tends to be less volatile than other commercial real estate asset classes and generally performs well during downturns. Yet, not all schools are created equalin terms of student housing investing. At ApexOne, we focus on:

Non-Primary Colleges & Universities

  • Non-primary colleges and universities providing a high quality education at a lower cost. Larger, primary schools are prone to overbuilding as they tend to attract offshore and institutional capital.

At Campus Locations

  • Existing housing that is in close proximity to campus; construction costs of new purpose-built student housing are prohibitive and often the locations are not close enough to campus to remain in high demand.

Student-Centric Environments

  • Elevate the quality of the student living experience and environment through engaged management and common area upgrades.

Affordable For Families

  • Provide a value-oriented, student housing solution at a price point affordable to the majority of the institution’s students and their families.

Demand for Rental Properties

Demand for rental property from tenants is increasing due to a number of economic and demographic events including:

  • POPULATION

    The significant percentage of the population who are in their prime apartment renting years of 20 to 34

  • GROWTH

    A steady growth in public and private university enrollment

  • WORKFORCE

    The creation and expansion of a mobile workforce

  • RENTERS

    Traditional homebuyers who are electing to remain renters

  • ACCESS

    The continued tight home mortgage market

Why Now May Be a Good Time to Invest

  • Returns

    On a risk adjusted basis, multifamily assets (including student housing) are historically more favorable than other real estate sectors. A typically non-correlated asset, apartments rarely experience the volatility of other property types.

  • NOI Growth

    According to AXIOMetrics, multifamily was the only asset class demonstrating NOI growth over the past two years. At year-end 2015, NOI Growth in apartments exceeded 10% and was still growing while other asset classes were in decline (office 4.5%, industrial 3.9%, and retail 2.5%).

  • Increasing Demand

    The number of renters by choice and renters by necessity is increasing. Enrollment at colleges and universities throughout the country has remained strong resulting in record occupancy levels in both on- and off-campus student housing facilities.

  • Occupancy

    Over the next four years, occupancy is projected to hover around 94.5% and 96.0% respectively in market rate multifamily and student housing.

  • Rent Growth

    Nationwide, rents continue to grow as a result of higher occupancy levels, constrained supply and fewer alternatives to renting.

  • Supply

    New supply is projected to average approximately 325,000 units per year over the next four years with absorption being at or near that number.

  • Favorable Financing

    Apartment and student housing communities continue to enjoy the most favorable financing terms of any of the commercial real estate sectors.

Millennial Statistics

  • 13,700 people per day turn 21
  • 5,000,000 people per year will enter the housing market for the next 10 years
  • 26,000,000 people are still living at home after college
  • $35,000 average debt at graduation from college

Millennial Trends

  • Prefer Time over Money
  • Live in proximity to work and play
  • Delaying getting married and starting a family
  • Highly mobile work force
  • Leading edge of Millennials should be entering the home buying market but are not
  • Have difficulty raising equity and securing debt to buy a home

ApexOne Fund III Update

As of December 2019, ApexOne Multifamily Fund III currently has 8 investments: 3 recently acquired. Below is a map of 8 of the ApexOne Multifamily Fund III - Investment Locations

ApexOne Fund III Property Level Update

The Preserve at Southwind

Memphis, Tennessee

fund

The Profile

The 306-unit workforce housing community was built in 2000 and was acquired in a joint venture with Balfour Beatty Communities and American National Insurance Co.

The Strategy

Occupancy at The Preserve at Southwind has consistently been in the mid-90%, yet rents trailed the market by approximately $150 per month/ unit. The current owner of Preserve at Southwind completed minor upgrades to approximately 45% of the units resulting in moderate increases in rent. A few of the units were upgraded to a premium level and those units obtained a significantly higher demand and corresponding rent.

ApexOne will also introduce measures at the property to reduce utility consumption and costs allowing the Partnership to participate in the Fannie Mae “Green Up” program. In exchange for participating in the Green Up program, lower interest rate spreads are offered by the lender.

Value add strategy

ApexOne will implement a three-phase value added strategy for The Preserve at Southwind:

  • Phase I:
    Retain Balfour Beatty Communities to manage and lease Preserve at Southwind. They will immediately introduce their tenant relations program to the community and begin implementing cost saving and revenue enhancement programs. They will also begin working with ApexOne’s portfolio management team to finalize the common area and unit renovation programs.
  • Phase II:
    Complete renovations and upgrades to the common area’s including “Green Up” upgrades to the water and electrical systems, roof replacements, repainting of the buildings and new landscaping. Pool, workout facilities and clubhouse enhancements, dog park and outdoor kitchens will also be evaluated.
  • Phase III:
    Commence unit renovations as approved by the partnership. Proposed renovations under consideration include new flooring, appliances, countertops, sinks and cabinetry. Hardware will be upgraded, 2-inch blinds will be installed, and faucets replaced throughout the unit. This is the 10th joint venture between ApexOne and Balfour Beatty Communities and the 3rd with American National Insurance Company.

The Investment Thesis:

ApexOne will implement a three-phase value added strategy for The Preserve at Southwind:

  • The Germantown School District, into which The Preserve at Southwind is zoned for elementary, middle and high school, is the #6 ranked school system in the state.
  • Germantown and Collierville rank #5 & #6 respectively as the wealthiest cities in Tennessee; the property offers a workforce housing solution in a compelling area.
  • FedEx’s World Headquarters, which employs over 3,300, is located less than one-half mile from The Preserve; the firm’s World Technology Center, which employees over 3,500, is also in reasonable proximity to this location.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by ApexOne Growth and Income Fund II.

Investment Summary

Property Type

Multi-Family

Location

Memphis, TN

Asset Profile

12 buildings with 288 units spread over 19 acres

Purchase Price

$35,850,000

Capital Reserve

$3,431,060

Adjusted Basis

$39,281,060

Purchase Date

12/2018

Total Equity

$12,506,060

Leverage 5yr I/O (68% Loan to Cost)

$26,775,000

Targeted Annual Avg. Cash Yield

9.16%*

Targeted 5-Yr IRR

14.93%*


(*) Fund returns and yields are not guaranteed.

Waterchase

Largo, Florida

fund

The Profile

The 278-unit workforce housing community was built in stages between 1969 and 1989. It was acquired in a joint venture with Balfour Beatty Communities.

The Strategy

The business plan for Waterchase is to perform a robust unit interior renovation program, enhance the Property’s exteriors and upgrade the common areas. Updating the pool area, clubhouse, fitness center and dog park are also being considered. Interior upgrades include cabinet and countertop upgrades, lighting and appliance upgrades, and upgraded faux wood flooring in select units. Exterior and common area enhancements include repainting the buildings’ exteriors, gutter replacements, landscape improvements including tree removal, parking lot / sidewalk repairs, pool area furniture upgrades, clubhouse / fitness center renovations, dog park upgrades and a roof contingency.

Further, we plan to convert a 16,000 SF vacant commercial building included in the transaction to 12 new apartment units for a total cost of approximately $1.0mm and assumed additional rental income of $1,200 / unit.

Year-one underwritten rents at the Property are approximately $170 / unit lower than the current median effective rent across the competitive set, and approximately $180 / unit lower than the current average effective rent across the competitive set. Current underwriting assumes we achieve a rent premium of $135, implying additional upside opportunity. Further, we plan to introduce energy efficient initiatives at the property to reduce utility consumption and costs, enabling us to participate in the Freddie Mac “Green Up” program. ApexOne receives lower interest rates from the lender in exchange for participating in the Green Up program.

The purchase price of $32.3mm ($116.2k / unit) represents an attractive discount to replacement cost in this location. Estimated new construction for the area is estimated to be in excess of $250k per unit due to the scarcity of land in the area and high development costs in the region. Waterchase resides within an infill location that has experienced zero deliveries since 2006 (within a three-mile radius). While there is a modest supply pipeline (two assets | 347 units | 1.2% of current inventory), asking rents are expected to exceed $1,500 / unit, more than 50% higher than current in-place rents at Waterchase and more suitable for a different tenant demographic profile.

This is the 11th joint venture between ApexOne and Balfour Beatty Communities and the 3rd with American National Insurance Company.

The Investment Thesis:

  • Waterchase represents a distinct opportunity to acquire a low-density asset within an infill location where new construction has been virtually non-existent since 2006.
  • The Property’s design plan featuring three separate pools in combination with its proximity to the well-known Pinellas beaches and numerous shopping and dining venues supports continued demand from existing and prospective tenants.
  • Included in the asset is a 16,000 SF vacant commercial building presenting the opportunity to develop 12 additional units at the Property, increasing NOI and exit pricing on the back-end.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by ApexOne Growth and Income Fund II.

Investment Summary

Property Type

Multi-Family

Location

Largo, FL

Purchase Price

$32,300,000

Capital Reserve

$2,600,323

Adjusted Basis

$34,900,323

Purchase Date

4/2019

Total Equity

$11,497,323

Leverage 5yr I/O(67% loan to Cost)

$23,403,000

Targeted Annual Avg. Cash Yield

8.25%*

Targeted 5-Yr IRR

17.3%*


(*) Fund returns and yields are not guaranteed.

The Preserve at Bartlett

Bartlett, Tennessee

fund

The Profile

The 300-unit workforce housing community was built in 2002. It was acquired in a joint venture with Balfour Beatty Communities.

The Strategy

Immediately following acquisition, ApexOne plans to engage Balfour Beatty Communities to manage the Property. They have demonstrated an ability to move rents at takeover even prior to renovations. The next step in the value-creation plan, subsequent to management transition, is to upgrade the common areas and exterior, followed by a unit-interior renovation program. Current underwriting assumes total exterior / common area upgrades of approximately $880k and a per unit interior renovation cost of approximately $10k, equating to total capital expenditures of approximately $2.9mm over the hold period.

Exterior and common area enhancements include pool area upgrades, clubhouse and fitness center renovations, dog park improvements, landscape improvements, parking lot and sidewalk repairs, gutter replacements and a roof contingency. The interior renovations will include cabinet and countertop upgrades, lighting and hardware upgrades, stainless-steel appliance replacements, the addition of washers and dryers to all units and the installation of faux-wood flooring in select units.

ApexOne also plans to introduce energy efficient initiatives at the property to reduce utility consumption and costs, enabling us to participate in the Freddie Mac “Green Up” program.

ApexOne receives lower interest rates from the lender in exchange for participating in the Green Up program.

The Preserve is located in the highly reputable Bartlett School District, with each of its zoned schools ranked eighth or higher statewide, making the Property highly desirable for young families who may not be able to afford homeownership but value a strong education for their children. Further supporting demand is the Property's proximate location to several lifestyle and retail amenities. Legend's is located on the edge of the Germantown Parkway Retail Corridor, which features 4.5mm SF of big-box retail and restaurants. Further, Shelby Farms Park, a 4,500acre public park with hiking / bike riding trails and several lakes, is located just four miles from the Property.

This is the 12th joint venture between ApexOne and Balfour Beatty Communities.

The Investment Thesis:

  • The Preserve represents an attractive opportunity to acquire a high-quality asset in the stable and expanding submarket of Northeast Memphis, an area characterized by extremely high-barriers-to-entry and strong historic market fundamentals.
  • A strong white-collar employment drives the Northeast Memphis economy; median income in the area exceed $75k and are some of the highest in the broader MSA.
  • The local school system is one of the best in the state, with all schools ranked eighth or higher statewide by greatschools.org.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by ApexOne Growth and Income Fund II.

Investment Summary

Property Type

Multi-Family

Location

Bartlett, TN

Purchase Price

$42,100,000

Capital Reserve

$1,819,576

Adjusted Basis

$43,919,576

Purchase Date

4/2019

Total Equity

$12,471,830

Leverage 5yr I/O (72% Loan to Cost)

$31,800,000

Targeted Annual Avg. Cash Yield

9.6%*

Targeted 5-Yr IRR

13.2%*


(*) Fund returns and yields are not guaranteed.

Cherry Grove

Jackson, Tennessee

fund

The Profile

The 380-unit workforce housing community was built in 1995. It will be acquired in a joint venture with two private investors.

The Strategy

ApexOne plans to immediately engage a new property management company to maximize the Property’s performance prior to commencement of the renovation program. We believe the property is “under managed”. The next step in the Property’s value-creation plan is to upgrade the common areas and exterior, followed by a unit interior renovation program. The underwriting for Cherry Grove assumes total exterior / common area upgrades of approximately $400k, and a per-unit interior renovation cost of approximately $4.5k, equating to total capital expenditures of approximately $1.5mm over the hold.

Exterior and common area enhancements aimed to enhance the Property’s “curb appeal” include landscape improvements, parking lot / sidewalk repairs, pool area upgrades, clubhouse / fitness center renovations, and dog park upgrades, among other items. Interior upgrades include countertop replacements, lighting and hardware upgrades, stainless-steel appliance upgrades, and installing faux wood flooring in select units.

Year-one underwritten rents at the Property represent a discount to the competitive set of approximately $60 / unit up to $205 / unit, depending on the unit specific bed/bath combination. Pro-forma underwriting assumes a blended rent premium of $60 across all units, implying a post-renovation blended rental rate still 6% below current in-place rents across the competitive set. ApexOne also plans to introduce energy efficient initiatives at the property to reduce utility consumption and costs, enabling us to participate in the Freddie Mac “Green Up” program. ApexOne receives lower interest rates from the lender in exchange for participating in the Green Up program.

Jackson is an Economic, Health and Cultural Center serving the surrounding 10 counties and is the largest city between Memphis and Nashville. Jackson's location along I-40 has made the market a choice destination for manufacturers and distributors as 75% of the US population can be reached within a one-day drive from the city. Key manufacturing companies with a presence in Jackson include: Black & Decker, Toyota, Kellogg and Delta Faucet. In addition to the manufacturing sector, Jackson's economy is heavily bolstered by the local school system and the Jackson-Madison healthcare system, which employs over 7,500 residents.

The Investment Thesis:

  • Cherry Grove presents a rare opportunity to acquire a well-occupied property that has historically generated consistent cash-flow.
  • With 80% of their units in their original condition, it is an attractive value added investment for the Fund.
  • ApexOne plans to implement a light renovation program to bring in-place rents closer to what is being achieved at the property’s competitive set.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by ApexOne Growth and Income Fund II.

Investment Summary

Property Type

Multi-Family

Location

Jackson, TN

Purchase Price

$32,820,000

Capital Reserve

$2,309,402

Adjusted Basis

$35,129,402

Purchase Date

7/2019

Total Equity

$10,754,402

Leverage 5yr I/O (69% Loan to Cost)

$24,375,000

Targeted Annual Avg. Cash Yield

8.3%*

Targeted 5-Yr IRR

17.3%*


(*) Fund returns and yields are not guaranteed.

The Landings at Lake Gray

Jacksonville, Florida

fund

The Profile

The 300-unit workforce housing community was built in 2005. It will be acquired in a joint venture with Balfour Beatty Communities.

The Strategy

Immediately following acquisition, ApexOne plans to engage Balfour Beatty Communities to manage the Property. They have demonstrated an ability to move rents at takeover even prior to renovations. The next step in the value-creation plan, subsequent to management transition, is to upgrade the common areas and exterior, followed by a unit-interior renovation program. Current underwriting assumes total exterior / common area upgrades of approximately $450k and a per unit interior renovation cost of approximately $6.7k, equating to total capital expenditures of approximately $2.5mm over the hold period.

Exterior and common area enhancements include pool area upgrades, repurposing of two common areas, the addition of a dog park and improvements to the clubhouse and fitness center. The interior renovations will include cabinet and countertop upgrades, new lighting and hardware, installation of stainless-steel appliances and bathroom counter and mirror replacements.

ApexOne also plans to introduce energy efficient initiatives at the property to reduce utility consumption and costs, enabling us to participate in the Freddie Mac “Green Up” program. ApexOne receives lower interest rates from the lender in exchange for participating in the Green Up program.

The Westside submarket has experienced strong momentum this cycle driven by a dearth of new supply; only one project has been delivered since 2009 (2013 4-star, 326 units). Since 2013, rent growth in the submarket has averaged 4.4% while vacancy rates steadily declined from over 10% in late 2013 to 5.5% today. These trends should continue over the medium-term as only one asset is projected to deliver over the next five years (226 units in late 2020).

This is the 13th joint venture between ApexOne and Balfour Beatty Communities.

The Investment Thesis:

  • The property represents an attractive value add investment opportunity as the asset features original finishes throughout and is currently 98% occupied versus 95% across the border submarket.
  • The West Side submarket’s economy is driven by a heavy presence of logistics, industrial, and distribution firms employing a large number of blue-collar workers.
  • The MSA’s largest employer, the Jacksonville Naval Air Station, is located less than 10 minutes from the property. The west side also benefits from its proximity to corporate hubs in adjacent submarkets.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by ApexOne Growth and Income Fund II.

Investment Summary

Property Type

Multi-Family

Location

Jacksonville, FL

Purchase Price

$45,500,000

Capital Reserve

$1,500,000

Adjusted Basis

$47,000,000

Purchase Date

8/2019

Total Equity

$15,100,000

Leverage 5yr I/O (67% Loan to Cost)

$31,900,000

Targeted Annual Avg. Cash Yield

8.6%*

Targeted 5-Yr IRR

13.2%*


(*) Fund returns and yields are not guaranteed.

ApexOne Fund Management Team

ApexOne Investment Partners has assembled a team of motivated real estate professionals with a combined 150+ years and $10B of industry experience. We execute a disciplined approach at all times, but remain agile with the ability to capitalize on opportunities as they arise. The company culture fosters teamwork and encourages innovation. We are relentless in our pursuit of performance excellence.

  • Jim Hearn

    Jim Hearn

    Executive Managing Director

  • Tim Burns

    Tim Burns

    Executive Managing Director

  • Ernest Johnson

    Ernest Johnson

    Executive Managing Director

  • Bill Saul

    Bill Saul

    Managing Director

Strategic Direction of the Firm and Investment Portfolio; Capital Relationships: Acquisitions and Asset Management; Partner Relationship Development

Jim serves as a Manager and member of the Investment Committee for the ApexOne Fund. He focuses on Company and Partnership strategy, capital relationships and deal sourcing. During his 30 years in the multifamily industry, Jim has closed over $4.5B of transactions and served as a national partner for Hendricks & Partners (1997-2011), Allied Realty Services (1990-1997), and Eton Financial Group (1985-1990). Jim currently serves as an active member of the National Multifamily Housing Council, National Apartment Association and Houston Apartment Association. He is active in the community, and supports Children’s Immunization Services through the Whispering Pines Golf Club and World Health Golf Association. Jim attended Gustavus Adolphus College in St. Peter, MN (1978-1982) and was named an NCAA Collegiate All-American tennis player for three consecutive years from 1980-1982. Jim is a principal with Triumph Golf, a private firm that invests in and manages golf course properties.

Strategic Direction of the Firm and Investment Portfolio; Multifamily & Student Housing Acquisitions; Asset Management; Client Communication; Partner Relationship Development

Tim serves as the Director of Acquisitions and Director of Asset Management, and is a Member of the Investment Committee for the ApexOne Fund. He focuses on Company and Partnership Strategy, Acquisitions, Dispositions and Asset Management. Tim has 27 years of real estate experience including the acquisition, finance, renovation, asset management and disposition of over 15,000 residential units, ten million square feet of industrial/warehouse space and four million square feet of retail property. Prior to joining ApexOne Investment Partners, Tim served as a Principal of Adams LaSalle Realty, a Chicago based multifamily investment sponsor where he was responsible for the firm’s acquisitions and venture partner relationships. Tim served as the Senior Vice President and Portfolio Manager of Heitman Capital, an institutional real estate investment advisor with over $25B of assets under management. His portfolio at Heitman Capital included $2B of multifamily, office, industrial and retail assets. Prior to the acquisition of JMB Realty Corporation by Heitman Capital, Tim served as Portfolio Manager for funds within JMB Institutional Realty Corporation, including JMB Group Trust V, the largest fund invested by JMB. Within these funds, Tim was responsible for a variety of large assets with values in excess of $100M each, and led the value enhancement strategies whereby the funds significantly outperformed their relevant index returns. Tim is an active member of National Multi Housing Council and the Urban Land Institute. He graduated from Western Michigan University with a BA in accounting and is a Certified Public Accountant.

Capital Markets; Direction of Investment Portfolio; Partner Relationship Development; Client Communication; and Financial Reporting & Services

Ernest serves as the Capital Markets Partner, General Manager and Member of the Investment Committee for the ApexOne Fund. He focuses on capital markets, Fund strategy and limited partner communications. Ernest has 35 years of real estate experience including 17 years as the Executive Vice President of PM Realty Group’s Capital Markets division and 10 years with JMB Property Company. During his tenure with PM Realty Group, Ernest consulted for major national healthcare systems assisting with development plans and evaluations of non-core real estate properties. Ernest is actively involved with National Multifamily Housing Council. He graduated with a Bachelor of Science in Business Administration from Auburn University (1980) and served on the Advisory Council for the Auburn Business School. Ernest was recently selected for a position on the University’s Advisory Board for the Masters of Real Estate Development Program. He also served as the Chairman of the Board of Trustees for the Lone Star Chapter of the National Multiple Sclerosis Society and is a member of their National Fundraising Hall of Fame. Ernest remains active with his college fraternity where he served as President of Pi Kappa Phi, President of Pi Kappa Phi Properties and as a member of the Board of Directors for the Ability Experience, a national philanthropy raising awareness and funding for people with disabilities. He currently serves as a Trustee of the Pi Kappa Phi Foundation.

Strategic Direction of the Firm and Investment Portfolio; Client Communication; Partner Relationship Development

Bill serves as the Business Development Partner and focuses on developing new capital relationships and limited partner communication for the ApexOne Fund. He has 37 years of real estate experience with prior positions at Colliers International (Managing Director), Hendricks & Partners (Managing Partner), JPI (Arizona Partner) Crow Western of Trammel Crow Residential and Granada Construction. As the Managing Director of Colliers International and Hendricks & Partners, Bill led the brokerage and sales divisions and introduced new innovative business disciplines still in use today. During his tenure at Crow Western of Trammel Crow, JPI and Granada Construction he was directly responsible for the development of over 9000 multifamily units. Immediately prior to joining ApexOne, Bill actively identified distressed opportunities created by the 2007 recession and led the acquisition of $100M of commercial notes. Bill is very active in the community and served eight years on the City of Phoenix Board of Adjustments. He served on the Board of Directors for CHILD Help, Anytown Arizona and the Metro YMCA Valley of the Sun. He attended and played football at William & Mary and holds a degree in Construction Engineering from Arizona State University in Tempe, AZ.

  • David Steele

    David Steele

    Managing Director

  • Chris Gulledge

    Chris Gulledge

    Senior Vice President Asset Management

  • Ryan Simon

    Ryan Simon

    Vice President

  • Kyle Grzybowski

    Kyle Grzybowski

    Senior Associate

Managing Director of Multifamily Acquisitions; Asset Management of Fund Portfolio; Capital Analysis and Due Diligence; Client Services and Communication

David serves as Associate Director of Acquisitions and Asset Management for ApexOne. He focuses on identifying new acquisition opportunities, underwriting, closing documents, and asset management of the portfolio. Prior to joining ApexOne in 2011, David was a Financial Advisor and Marketing Specialist for major investment firms including: Merrill Lynch Wealth Management, Invesco Investments, BMC Capital LP, LMI Capital and Hines Real Estate. During his tenure at Merrill Lynch Wealth Management, David assisted small business owners, executives and high net worth retirees with financial and portfolio planning. David earned his BA from Stephen F Austin State University and holds an MBA from the University of Houston. David is active in the community including volunteer work for the local Big Brother program and Susan G Komen Breast Cancer Run/Walk of Greater Houston.

Senior Vice President of ApexOne Investment Partners, serves as an Asset Management Officer for the ApexOne Growth & Income Funds I & II

His focus will be to execute the business plan for each asset including oversight of third party management teams, manage all capital projects to completion, maximize property revenues and NOI, and prepare and present performance reports for ApexOne and its capital partners.

Chris has 19 years of real estate experience including asset management, portfolio supervision, construction management, budgeting, performance reviews, dispositions and team leadership. Prior to joining ApexOne, Chris managed a portfolio of 8400 units across Houston, Dallas, San Antonio and El Paso for Bridge Property Management. Within the Bridge portfolio, he directed a team of three regional supervisors and managed a $30M renovation of 13 assets and prepared 11 properties for disposition. Prior to his tenure with Bridge Property Management Chris has help management and supervisory positions with US Bank Special Assets Group, Eureka Multifamily Group, Morgan Group, Lincoln Property Company and Oak Leaf Management.

Chris is active in the community and is an avid hunter and outdoorsman. He graduated in 1992 from Texas A&M University at College Station with a BS in Kinesiology and Sports Medicine.

Vice President of Asset Management

Ryan is a Vice President with ApexOne, focusing on Asset Management, joint venture partner communications, as well as supporting third party management teams throughout the portfolio.

Prior to joining ApexOne, Ryan was a Regional Property Supervisor with The Finger Companies overseeing a diverse portfolio of over 4,000 units where he effectively executed strategies that improved and progressed NOI and the overall performance of his portfolio. He also served as a Certified Training Manager for LQ Management, LLC, overseeing multiple properties focused on increasing overall performance, leadership, development, and growth.

Ryan and his wife are extremely involved in the lives of their two young daughters as well as being active in their community and church, St Rose of Lima.

Ryan earned his Bachelor of Science in Hotel & Restaurant Management from the Conrad N. Hilton College at the University of Houston (2008.)

Senior Associate

Kyle is a Senior Associate on the investment team at ApexOne Investment Partners where he is actively involved in all aspects of the acquisitions process. His responsibilities include deal sourcing / screening, underwriting new investment opportunities, performing in-depth market research, and coordinating the due diligence process for awarded transactions.

Prior to joining ApexOne in 2019, Kyle was an acquisitions analyst for Goldman Sachs Asset Management Private Real Estate (GSAM PRE), where he focused on evaluating new investment opportunities across the multifamily, office, industrial and retail sectors across value-add, core-plus and core risk profiles.

Kyle graduated form the University of Utah, summa cum laude, with a Finance BS (2013).

  • Alexis Jones

    Alexis Jones

    Vice President

  • Heather Moos

    Heather Moos

    Vice President

  • Nick Vaccari

    Nick Vaccari

    Associate | Acquisitions

Senior Associate to the acquisition and asset management teams

Alexis provides analysis, research and support to the acquisition and asset management teams.

Alexis was previously with the Capital Markets team of Newmark Grubb Knight Frank in Tampa Bay, Florida.

Prior to engaging in the real estate industry, Alexis founded and operated her own company in California focused on pain management for patients with auto immune deficiencies.

Alexis earned a bachelor's degree in English from Florida State University in 2011, and her Masters in Real Estate from the Nathan Collier Masters of Science in RealEstate program at the University of Florida in 2016.

Alexis is an active member of the Society of Real Estate Professionals,the National Multifamily Housing Council and 100 Women in Finance.

Assistant Fund Administrator for the ApexOne Growth & Income Funds I & II

Heather joined the ApexOne team in 2016. Her primary focus is on assisting in the distribution and reporting processes of the ApexOne Growth & Income Funds I & II, maintenance of investor files, books and records, as well as managing the distribution of quarterly and annual investor reports.

Heather has 27 years of real estate experience in both multifamily and commercial property management as well as administration, budgeting, accounting, and office management. She spent 13 years with Hendricks & Partners as Branch Manager for the Houston office, and held prior positions with Pinnacle Realty Management and Insignia Commercial Group.

Heather is an active community volunteer, member of the National Charity League, Post Oak Chapter, and earned her degree from the University of Houston with a BS in Psychology.

Associate | Acquisitions

Nick is an associate on the acquisitions team at ApexOne Investment Partners where he is actively involved with deal sourcing/screening, in-depth market research, and due diligence for awarded transactions and portfolio properties.

Prior to joining ApexOne in 2019, Nick was a senior valuations associate for CBRE in Houston, TX where he worked with national appraisal and valuations team.

Nick graduated from Louisiana State University in 2015 with a BS in Construction Management and earned his MBA from LSU in real estate finance in 2018.

ApexOne - Property Acquisition History

The following is a selection of previous acquisition and development projects by management of ApexOne.

ApexOne Track Record

*Fund III Investment Period from 2018 –3/31/2019. Includes two properties, Cherry Grove (anticipated closing 7/10/2019) and Landings at Gray Lake (anticipated closing in August 2019).

Past ApexOne Fund Metrics

ApexOne Highlights

Apex Access Fund LLC

The following Apex Access Fund documents are available to view:

ApexOne Multifamily Fund III Documents

The following ApexOne Fund Documents are available to view:

  • Executive Summary

    The executive summary provides an overview of ApexOne Multifamily Fund III.

  • Presentation

    The Presentation provides an overview of ApexOne Multifamily Fund III and investing in student housing and multifamily communities.

  • PPM

    The Private Placement Memorandum (PPM) for prospective investors for the ApexOne Multifamily Fund III.

  • PPM Supplement

    The Private Placement Memorandum (PPM) Supplment No. 1 for prospective investors for the ApexOne Multifamily Fund III.

  • Subscription Agreement

    The Subscription Agreement for prospective investors for the ApexOne Multifamily Fund III.

  • Limited Partner Agreement

    The Amended and restated Limited Partnership Agreement for the ApexOne Multifamily Fund III.

  • Investor Questionaire

    A questionaire required by all ApexOne Multifamily Fund III Investors

  • Frequently Asked Questions

    A list of commonly asked questions regarding the ApexOne Multifamily Fund III.

  • ApexOne Multifamily Fund III Q4 Report

    This quarterly report contains information about the business activities and operations of ApexOne Multifamily Fund III

  • Investor Posting

    This is a report regarding the Final Cherry Grove Investor Posting.

  • Investor Posting

    This is a report regarding the Final Legends at Wolfchase Investor Posting.

  • Investment Summary

    This is a report regarding the Waterchase Investment Summary.

  • Investment Summary

    This is a report regarding the Preserve at Southwind Investment Summary.

Apex Access Fund LLC Terms

Investment Summary

Fund

Apex Access Fund LLC (the “Access Fund”)

Fund Managing Member

CV Manager LLC

Technology Fee

The Access Fund will pay CV Marketplace 0.75% (75 basis points) of the Fund capital per year for annual Investment Dashboard technology and information functions such as investment reporting and other communication. *Tech Fee is eliminated the first year.

Administrative Expenses

The Access Fund will pay CV Marketplace LLC $500 per investor per annum for managing annual investment accounting and distributions.

Organizational Expenses

The Access Fund will pay CV Manager a one-time fixed fee of $50,000 for organizational and formation expenses.

Minimum Investment Amount

$50,000, subject to change in select cases

Distributions

Quarterly, paid out of distributions from ApexOne

Targeted Fund Amount

Estimated $4,000,000

Hard Offering Close

Documentation, Accredited Status and Wire Transfer must be completed by the Hard Closing Date of May 29, 2020.

Term

5 years, plus an extension of up to 2 years

WCI Investors

Technology and Admin Fee is eliminated for the first year and the minimum investment is $25,000

Fund Administration/Accounting

Assure Services will be paid at closing for all accounting, tax and other administration services for the life of the fund.

ApexOne Multifamily Fund III, LP Terms

Investment Summary

Targeted Return

13% to 15% net of Fees

Preferred Annual Return

8% paid to the Access Fund

Management Fee

1.25%

Profit Split after Preferred Return

80% Investor / 20% Manager

Fund Term

5 years plus 2 year extension

Minimum Investment

$500,000

Target Fund Size

$150,000,000

Important Disclosure Statement for ApexOne Fund:

An investment in the units of ApexOne Fund is speculative and risky. No assurance can be given that investors will realize their investment objectives or will realize a substantial return (if any) on their investment. Investors should be able to bear the complete loss of their investment in ApexOne Fund. For this reason, each prospective subscriber for ApexOne Fund should carefully read ApexOne Fund’s Private Placement Memorandum (“Memorandum”) and all Exhibits to the Memorandum. Each prospective subscriber should consult with his attorneys, accountants, and business advisors prior to making an investment in ApexOne Fund. Only qualified, eligible investors may invest in ApexOne Fund.

ApexOne Fund will invest in multifamily, residential real estate, which includes apartment and student housing. As such, investment in the Units does not constitute a diversified investment. ApexOne Fund intends to diversify its investments by investing in multiple multifamily residential properties throughout the United States. ApexOne Fund intends to hold approximately 20 properties with no single investment representing more than 20% of ApexOne Fund's total invested capital. Anticipated portfolio characteristics may differ from actual portfolio holdings. An inability to raise substantial funds in this Offering could also result in substantial limitations on ApexOne Fund’s ability to achieve a diversified portfolio of assets.

Because this is a blind pool offering, investors will not have the opportunity to evaluate investments before ApexOne Fund makes them, which makes an investment in ApexOne Fund more speculative. The investors must rely on the management of ApexOne Fund and to make all investment decisions. There can be no assurances or guarantees that ApexOne Fund’s investment objectives will be realized or ApexOne Fund’s investment strategy will prove successful.

An investment in ApexOne Fund may be affected by a number of factors beyond the control of the management of ApexOne Fund that will affect the value of ApexOne Fund’s investments. These include risks typically associated with investments in residential real estate that produce income such as increased vacancy rates, re-letting risk, or decreased rental rates, adverse changes in general economic conditions or local conditions that may reduce the demand for multifamily residential properties, changes in the demand for or supply of competing properties in an area, unanticipated holding costs, the availability and cost of necessary utilities and services, changes in real estate tax rates and other operating expenses, changes in governmental rules and fiscal policies, changes in zoning and other land use regulations, environmental risks such as mold contamination or environmental claims that could be made against ApexOne Fund, and natural disasters, most of which are not covered by insurance.

ApexOne Fund will operate in a highly competitive market for investment opportunities. ApexOne Fund's profitability depends, in large part, on the ability to acquire profitable investments. In doing so, ApexOne Fund will compete with numerous other entities and individuals engaged in real estate investment activities, many of which have greater financial, technical, marketing, and other resources than ApexOne Fund. Poor performance of the investment management in selecting investments for ApexOne Fund, or poor performance of any investment, could adversely affect the profitability of ApexOne Fund and the overall return to the investors.

ApexOne Fund may make investments through a joint venture or co-investment arrangement. Such arrangements may be on terms that limit ApexOne Fund’s ability to control the investments and to receive returns on those investments.

Adverse economic conditions may adversely affect the ability of ApexOne Fund to obtain financing. Unfavorable financing terms or the inability to obtain financing would adversely affect the operating results of ApexOne Fund. The high level of leverage on the properties increases the debt service risks and the likelihood of foreclosure. ApexOne Fund's borrowing of capital increases the risks of adverse effects on ApexOne Fund's financial condition.

The investment manager of ApexOne Fund has a limited operating history and track record upon which prospective investors may base an evaluation of its likely performance. Prospective investors should not rely on the past success of the investment manager's affiliates. The success of ApexOne Fund is significantly dependent upon the expertise of certain investment or support personnel and any future unavailability of their services could have an adverse impact on the ApexOne Fund’s performance. The General Partner and a majority of Limited Partners may agree to amend the ApexOne Fund Agreement, which could be adverse to some limited partners. It is impossible to predict accurately the results from an investment in the ApexOne Fund because of general risks associated with the complete reliance on the General Partner and its affiliates to identify and negotiate the investments to be acquired by ApexOne Fund.

The proposed method of operation of ApexOne Fund creates certain inherent conflicts of interest among the ApexOne Fund, ApexOne, the General Partner and their affiliates. The liability of the investment manager is limited. ApexOne and its affiliates may compete with ApexOne Fund's investments and may provide services to the ApexOne Fund or Property Owners. ApexOne Fund may make direct investments in affiliates of the investment manager. The investment manager may have conflicting fiduciary obligations with respect to the allocation of investment opportunities. The investment manager and its affiliates will receive compensation and reimbursements. Certain compensation to the investment manager and its affiliates has not been established by arms-length agreement. ApexOne Fund's and the investment manager's officers and agents will engage in other management activities. A single legal counsel will represent ApexOne Fund, the investment manager, ApexOne and their affiliates.

The investment manager may have conflicting fiduciary obligations when making investments through a joint venture or co-investment with an affiliate of the investment manager. These transactions may not be the result of arm's-length negotiations and may involve conflicts between the ApexOne Fund's interests and the interests of the investment manager and its affiliates. The investment manager will use reasonable efforts to ensure that the terms and conditions of such transactions will be no more favorable to the affiliate than could be obtained by arms-length negotiations with an independent third party.

An investment in ApexOne Fund is illiquid. No public or other market will develop for the Units. These securities are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act of 1933, as amended and the applicable State securities laws, pursuant to registration or exemption there from. Prospective investors should be aware that they will be required to bear the financial risks of any investment in these securities for an indefinite period of time.

Units of ApexOne Fund are offered without registration under any securities laws due to a reliance on an available exemption. Although, ApexOne Fund’s offering documents are not reviewed or approved by federal or state regulators, ApexOne Fund must comply with a variety of legal and compliance requirements. Failure to comply with the requirements for a private offering exemption would adversely affect ApexOne Fund. Maintenance of an Investment Company Act exemption may impose limits on ApexOne Fund's operations, and if ApexOne Fund becomes subject to the Act, ApexOne Fund would likely be unable to continue its business.

To the extent Fund cash flow permits, the investment manager intends to make monthly distributions to the Limited Partners, however, the investment manager may reinvest all or a portion of proceeds received from Capital Events on or before December 31 2020, rather than using such proceeds to make distributions to the Limited Partners. Prospective investors should be aware that the sole source of cash from which ApexOne Fund will make cash distributions on the Units will be from revenues received from investments made by ApexOne Fund. No assurance can be made that ApexOne Fund will receive sufficient return on its investments to enable it to make any distributions to the Limited Partners.

Certain statements included in this presentation constitute "forward-looking statements" and are subject to a number of significant risks and uncertainties. Any such forward-looking statements contained herein should not be relied upon as predictions of future events. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "could" "would likely," "should," "seeks," "approximately," "intends," "plans," "estimates," "anticipates," "continue" or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions. Such forward-looking statements are subject to numerous risks and are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and may not be realized. In that regard, actual results may differ materially from those in forward-looking statements. As a result of the foregoing, no assurances can be or are given as to future results of operations or financial condition of ApexOne Fund.

ApexOne Fund’s investment approach has complex tax implications for investors. These ramifications should be reviewed carefully and applied to each investor’s individual circumstances. ApexOne Fund may involve structures or strategies that may cause delays in important tax information being sent to investors. You should obtain investment and tax advice from your advisers before deciding to invest.

This material includes certain statements, estimates and projections of ApexOne Fund with respect to the anticipated future performance of ApexOne Fund. Such statements, estimates and projections reflect various assumptions of the investment manager that may or may not prove to be correct, and no assurance can be made that ApexOne Fund can or will attain such results. Nothing contained herein is or should be relied on as a promise or representations as to the future performance of ApexOne Fund.

These materials (the “Presentation”) have been provided for informational purposes only and neither constitutes the Memorandum of ApexOne Fund nor provide a comprehensive disclosure of both the terms of investment and risk disclosures associated with an investment in ApexOne Fund. This Presentation is not a complete summary of the terms of ApexOne Fund or the background information of persons associated with the Investment Manager and is qualified in its entirety by, and must be read in conjunction with, the more detailed information included in the Memorandum, the governing documents of ApexOne Fund, the Subscription Agreement of ApexOne Fund, the Form ADV of the investment manager, and other related documentation, copies of which may be obtained by contacting ApexOne at (713) 231-1421.

This Presentation, furnished on a confidential basis to the recipient, is neither an offer to sell nor a solicitation of any offer to buy any securities, investment products or investment advisory services, including units of ApexOne Fund. This presentation is not an advertisement and is not intended for public use or distribution and is intended exclusively for the use of the person to whom it has been delivered. An Offer may be made only by means of the Memorandum. This sales literature must be accompanied or preceded by that memorandum and read in conjunction therewith to fully understand the implications and risks of the securities to which it relates.

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FORWARD-LOOKING STATEMENTS

The presentation at the CityVest.com website includes information provided to CityVest by the fund being described. It contains “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express fund manager’s current views concerning future events, trends, contingencies or results, appear at various places in this presentation.

Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “targets,” “plans,” “may,” or other similar words (including their use in the negative). Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this presentation. We do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause the fund’s actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:

■ Increases in the Company’s borrowing costs as a result of inflation and increasing interest rates and other factors;
■ Changes in real estate market and general economic conditions or economic conditions in the markets in which the Company may, from time to time, compete, and the effect of those changes on the Company’s or revenues, earnings and Offering sources;
■ The ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration of the leases, the Company’s ability to reposition its units on the same or better terms in the event of nonrenewal, including in the event of a recession;
■ Our ability to make acquisitions and dispositions and successfully integrate the businesses we acquire;
■ The Company’s limited operating history;
■ The Company’s success in implementing its business strategies;
■ The nature and extent of future competition, including new construction in the markets in which the Company and its facilities are located;
■ The Company’s reliance on key personnel;
■ The Company’s reliance on third-party vendors of technology, in particular the technology used to process and collect payments, or in the Company’s self-service kiosks or unmanned onsite operations and management;
■ Risks associated with the lack of liquidity of the Company’s securities; and
■ The impact of litigation or any financial, accounting, legal, tax or regulatory issues that may affect the Company or its tenants.

The factors noted above are not exhaustive. The Company operates in a dynamic business environment in which new risks emerge frequently. Further information about the Company’s businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company’s Private Placement Memorandum, which you should read before deciding to invest.

Value Add

Risk of Loss
Medium 1
Leverage
60-75% 2
Occupancy Rate
Less than 80% 2
Strategy
Heavy Renovations​/Major Retenanting 2
Stable Tenants
Few​/None 2
Hold Period
1-3 Years 2

1 The Risk of Loss is relative to other investment profiles. There is always a risk of total loss.

2 These are typical attributes for this profile of investment and may or may not represent this particular investment.

Multi-Family

Multi-family investments are apartment communities with more than four units. So long as there are people, there will be a need for housing. As the population grows, demand for housing will increase as well.

Target Return (IRR)

The estimated annual return which includes both the annual cashflow and the sale proceeds.

Target Annual Cash

The estimated average percentage annual cash return from the investment.

Estimated Hold

Estimated hold period from investment to realization.

Preferred Return

The preferred return or “pref” is a percentage cumulative return on initial investment that investors must attain prior to the investment manager’s participation in the profits.

Fund Size

ApexOne Fund is raising a maximum of $100,000,000