CATALYST ACCESS FUND

  • Summary

    Summary

  • Strategy

    Strategy

  • Diligence

    Diligence

  • Team

    Team

  • Record

    Track Record

  • Closed

Catalyst Access Fund 2 LLC

Investment Overview

  • Summary

    Summary

    Fund Overview

  • Strategy

    Strategy

    Investing in Multi-Family Property

  • Diligence

    Due Diligence

    Independent 3rd Party Fund Diligence Report

  • Our Team

    Team

    Real estate professionals with 100+ years of experience

  • Track Record

    Track Record

    Historical IRR over 35%

Investment Summary

Fund Type

fund

Multi-Family Property

Targeted Return

20% - 25% net

Distributions

Quarterly

Min. Fund Investment

$25,000

Hard Close Date

May 16, 2022 or 99 Investors

Limited spots available to invest

Welcome to Catalyst Access Fund 2

It's Alan Donenfeld with CityVest. I am excited to be working directly with Accredited Investors. Thank you for taking the time to learn more about how CityVest is providing Accredited Investors with direct access to Institutional Private Equity Real Estate Funds. Please feel free to call me directly at 917.747.3091 or if it's more convenient to book a meeting please click on my appointment scheduler.


  • Dr. Adam Gower Interview Alan Donenfeld on CityVest


  • Alan Donenfeld & Julian Vogel Catalyst Investor Podcast

Catalyst Investment Overview

Catalyst Real Estate Fund II LP (“Catalyst” or “Catalyst Fund”) is seeking to raise $30 million to invest in multifamily real estate as a general partner / GP co-investor alongside the Catalyst Fund’s sponsor manager, Colony Hills Capital. Catalyst will participate in the GP equity returns such as a share of the percentage of profits charged to the LP investors. Catalyst seeks current income and capital appreciation through investment in existing income-producing real estate in the US with a focus on value-add, repositioning of Class A- to B- multifamily apartment properties. Catalyst is targeting investments in the southeast states as well as Texas. Catalyst is targeting an annualized net IRR of 20% - 25%. Catalyst is managed by its sponsor/manager Colony Hills Capital. Colony Hills has achieved a 35% IRR on historical realized investments. Colony Hills Capital is not charging any management fee at the Catalyst Fund level. The prior Catalyst Real Estate Fund 1, which raised $20 million in 2021 and is fully invested with $377 million of total capitalization of assets.


  • Performance

    35% IRR on realized investments
    Catalyst Fund is targeting a 20% - 25% IRR
    Catalyst Provides the Access Fund a 12% Preferred Return (vs. 8% Pref for a direct investment)

  • Experience

    Over 100 years of real estate investing experience in multifamily properties
    10 Colony Hills investment employees

  • Investments

    Colony Hills Capital has been involved in $947 million in total multifamily housing assets
    Involved in the acquisition of 28 properties with over 10,000 apartments

Catalyst Access Fund 2 LLC

Catalyst Access Fund 2 LLC (the “Access Fund”) is raising capital to invest in Catalyst Real Estate Fund LP II (“Catalyst" or “Catalyst Fund”). The Access Fund is raising capital through a “feeder fund” structure called an access fund by aggregating up to 100 investors at a minimum investment of $25,000 each and will invest the capital into Catalyst Fund. Since the Access Fund will aggregate a several million dollar investment amount, the Access Fund has been able to negotiate to receive a 12% preferred return that is compounded annually, as compared to direct investors into Catalyst at the $100,000 minimum investment level who will only receive an 8% preferred return. In addition, the Access Fund has negotiated to receive 80% of profits after the 12% preferred return has been achieved, as compared to direct investors who will receive only 75% of profits after they receive an 8% preferred return. Catalyst Access Fund will close at the earlier of May 16, 2022 or when it has received DocuSigned Agreements from 99 investors.

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Key Considerations

  • Access to an Institutional Fund - The Access Fund provides individual investors with access to the Catalyst Fund with a $25,000 minimum investment, as compared to a $100,000 minimum investment for a direct investment into Catalyst Fund.
  • 20% -25% Targeted Return - Catalyst is targeting an annualized net IRR of 20% to 25%.
  • Higher Negotiated Returns - The Access Fund has negotiated to receive a 12% preferred return from Catalyst, as compared to an 8% preferred return for direct investors into Catalyst. In addition, the Access Fund has negotiated to receive 80% of profits after the 12% preferred return has been achieved, as compared to direct investors who receive only 75% of profit after the 8% preferred return.
  • Proven Track Record – Colony Hills Capital management have garnered a 35% IRR on past realized multifamily investments.
  • Attractive Investment Niche – As a GP co-investor, Catalyst will invest in multifamily real estate properties alongside Colony Hills and participate in the GP equity returns such as a share of the percentage of profits (promoted return) charged to the LP investors.
  • Experience – Catalyst is a highly experienced investment manager with over 100 years of combined experience in over half billion of real estate transactions totaling over 10,000 apartments.
  • Skin-in-the-Game – Colony Hills Capital management will invest approximately 10% of the equity in each acquisition as a GP and will invest approximately 1% of the capital of Catalyst.

Catalyst Service Partners


  • Fund Administrator


  • Fund Auditor


  • Legal Counsel

Access Fund Service Provider


  • Tax and Accounting Services

Why Invest Through a Fund

  • FAVORABLE FINANCING

    Catalyst will take advantage of a historically low interest rates and favorable financing terms at a time when basic SFR investment fundamentals are showing continued strength.

  • INSTITUTIONAL OVERSIGHT

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

  • PRUDENT DIVERSIFICATION

    At completion, Catalyst will own 9 to 15 investments in Multi-Family properties.

  • PROVEN TRACK RECORD

    CityVest searches for institutional investment managers who have a strong historical track record with IRR returns well over 20%.

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.

CATALYST OVERVIEW & STRATEGY

Catalyst’s investment objective is to seek current income and capital appreciation through acquisition of multiple, existing income producing real properties in the United States with a focus on multifamily apartment properties that are expected to be acquired at prices below replacement cost and are expected to generate positive cash flow and capital appreciation over the investment hold period. Catalyst may accomplish this objective by investing in general partnership interests. The Catalyst Fund expects to contribute approximately 10% of the total equity, or 50% of the required GP commitment, into each investment. The sponsor intends to invest the remaining 50% of the required GP commitment directly alongside the Catalyst Fund. This GP co-invest structure allows Catalyst to participate in the underlying investment fees charged to LPs, which will provide Catalyst outsized returns. Catalyst may make opportunistic investments in smaller or different class multifamily properties, in properties in different markets or in properties that are not multifamily properties, although all such other investments will not exceed 20% of Catalyst’s aggregate capital contributions. Catalyst anticipates financing a portion of each property acquisition and any related improvement and development costs including, but not limited to, closing costs, brokerage commissions, reserves and capital improvements. Third party debt at the property level may be as great as 80% of a property’s acquisition, reposition and renovation costs.

Strategy Advantages and Opportunities

  • Asset classes

    • Multifamily with value enhancement opportunities.
    • General partnership interests of real estate acquisitions.
  • Asset Status - Class A- to B- properties with 100 or more units.
  • Portfolio size - Targets 9 to 15 properties, the first 4 acquisitions are expected top have a total capitalization over $140 million
  • Holding Period - Within 5 years of acquisition of each asset.
  • Geography - Primary, secondary, and tertiary markets in the U.S. includes Texas, Florida, Georgia, Alabama, North Carolina, South Carolina, Tennessee and Massachusetts
  • Limitations

    • Projects under construction or undeveloped land: not permitted
    • Military housing or student housing: not permitted
    • Non-conforming multifamily and other assets classes: limited to the greater of: 20% of aggregate capital contributions
    • Single property investment: limited to the greater of 20% of aggregate capital contributions or $2 million
  • Acquisition Sources – Focus on off-market transactions through relationships with local property owners, brokers, and real estate professionals.
  • Structure

    • Investments may be held directly or through special purpose entities (SPEs), which need not be majority-owned by Catalyst

Example of the Capitalization of an Acquired Property

Responsibilities of the GP and LP

  • GP Equity

    The GP is typically responsible for

    o Sourcing the deal
    o Value-add strategy
    o Budgets
    o Negotiations with sellers
    o Debt sourcing

  •  



    o Closing of transaction
    o Execution of strategy
    o Management and operations
    o Determination of sale price and timing

  • LP Equity

    LP equity is passive; however, they do have high-level votingrights to:

    o Sell Asset
    o Refinance
    o Replace 3rd party property management

Key Investor Benefits For Investing as a GP

  • GP Co-Invest

    The Fund Investors passively earn GP equity returns without assuming the risk of Sponsorship.

  • Promoted Returns

    Investors will earn ‘promoted’ returns on their equity providing a projected 2.5X multiple versus 1.5X as a traditional LP.

  • GP Equity

    GP Equity allows for less equity exposure (only 5% of the equity on property level).

  • Property Diversification

    The Catalyst Fund will participate in a projected 9 – 15 properties, enabling great property and market diversification.

  • GP Asset Value

    $30 - $50 million of GP equity can translate into $500+ million in assets.

  • Targeted Returns

    Projected 20% - 25% net IRR to investors and distributions of 8% paid quarterly.

Target Markets

Catalyst’s Investment Strategy Provides Best States for Business


• Six out of the top-ten “Best States for Business” are within CHC’s target markets.
• States which are conducive for new business leads to new jobs new jobs attracts people people need places to live.

Catalyst Due Diligence Report

Prepared By: Buttonwood Investment Services LLC - March 15, 2022

Building Wealth In Real Estate - CityVest

CityVest requires that all Investment Fund Managers/General Partners meet certain minimum criteria when being considered for inclusion on the CityVest platform. Buttonwood Investment Services LLC has been engaged by CityVest to conduct a third party due diligence verification on the following aspects of the investment fund manager:

  • Current property portfolio
  • Principal experience
  • Manager/GP Co-investment
  • Property sales/dispositions
  • Principal succession
  • Background check/review

Buttonwood has verified the due diligence information and below is a review of the findings.

Building Wealth In Real Estate - CityVest

Colony Hills Capital
2040 Boston Road, Suite 20
Wilbraham, MA 01095
413.781.7010

www.colonyhillscapital.com

Real Estate Acquisition Experience

Buttonwood has verified that the Fund Principals have a minimum level of $50 million of combined lifetime acquisition cost as a General Partner or Managing Member of an entity that owns real estate. Applicable experience includes those situations where the Principals had equity invested and at risk in the project(s) and day-to-day involvement in the management and ownership of the project(s).

Criteria Has Been Met

Current Portfolio Value:

$397,468,623

Value of Property Dispositions:

$230,300,000

Failed Project Investor Equity Lost:

$0

Real Estate Principal Experience

Buttonwood has verified that the Fund Principals have a minimum level of combined lifetime experience in the real estate field. The Combined Minimum Principal Experience is 15 Years and a Principal is defined as someone who was a General Partner or Managing Member of an ownership entity with real cash equity invested, and at risk, in the project and with day-to-day involvement in ownership.

260+ Years Combined

True Principal Experience

260+ Years

Years as Current Company

15 Years

Investment Fund Governance

Buttonwood has verified that the Investment Fund Governance follows the highest level of fidiciary standards by utilizing an independant audiotr as well as a third-party fund administrator.

Criteria Has Been Met

Fund Auditor: EisnerAmper LLP
Audit of all financial activity and review property audited financials.

Validated

Fund Administrator: SS&C Technologies, Inc.
Maintain capital accounts, balances owed, distributions, KYC/AML.

Validated

Key-Man Succession Insurance

Buttonwood has verified that the Fund maintains a “key man” insurance policy on at least one or more key members of Manager/General Partner management. This requirement is in place to ensure that the Managing entity has the financial resources to maintain operations in the event that a key Principal is incapacitated.

Policies must have the following provisions:
• The policy names the Manager/General Partner or the underlying project entity as the entity to be paid upon exercise of the policy.
• The policy has a minimum coverage amount of $1 Million.

Criteria Has Been Met

Policy Payable Party

Validated
Glenn Hanson and/or David Kaufman

Policy Coverage

Validated
$1 Million

Manager/General Partner Co-Investment

Buttonwood has verified that the Fund Partners invests in the funds they are offering alongside their investors.

Investment requirements include:
• An investment of at least 2.50% of the total targeted raise amount; or
• A minimum investment of $500,000.

Criteria Has Been Met

Manager Co-investment

Validated

Manager Co-investment Amount

$500,000

Public Information Search

Buttonwood has reviewed publicly available information sources to confirm management identity and claims. Further, this review is conducted to help identify any objectionable material that may demonstrate character issues or that may impact the Manager’s ability to successfully manage real estate assets.

Criteria Has Been Met

Adverse Reporting/Articles/Findings

Web search for relevant news articles and reporting on any sponsor or manager activities that may impact or inform their ability to manage real estate.

None Reported

Adverse Social Media Profiles

Search of common social media platforms for profiles that contain offensive content or material relevant to ones moral turpitude.

None Reported

LinkedIn Search

Search of LinkedIn to confirm professional experience conforms with reported experience.

Validated

FINRA Broker-Check

Buttonwood has reviewed FINRA databases to confirm that all Principals are screened to identify any past disciplinary actions related to employment at brokerage firms.

No Actions

SEC Filings

Buttonwood has reviewed all filings made by the manager to the SEC. The Securities and Exchange Commission (SEC) requires certain financial statements and other formal documents to be submitted to them regularly. Public companies, certain company insiders–which the SEC defines as officers, directors, major stockholders, and employees of a public company–and broker-dealers are required by the SEC to make regular filings. Financial professionals and investors rely on the information that the SEC makes public in order to make prudent decisions when they are evaluating a company for investment purposes.

None Reported

Management Background Review

Buttonwood conducted a background search on the primary principals of the Manager/General Partner as well as on the primary entities. This background check is designed to reveal liens, claims, judgements, bankruptcies, criminal convictions, lawsuits, etc.

No Issues Found

Lawsuits

None Reported

Other Legal Matters Current or Pending

None Reported

Criminal Filings and Convictions

None Reported

Judgements and claims

None Reported

Bankruptcies

None Reported

Liens (greater than $10,000)

None Reported

UCC Defaults

None Reported

Buttonwood Diligence Disclaimer

This above Due Diligence Report including all information disclosed (“Report”) by Buttonwood Investment Services LLC is intended to be used for informational and discussion purposes only. Furthermore, this Report is not intended to cover all facets of the due diligence process that a potential investor may require and this Report is not designed to replace those due diligence efforts. This Report is simply designed to provide basic summary information pertaining to a Manager or General Partner and it should be noted that Buttonwood Investment Services is not involved in any decisions made by CityVest Capital Inc or the individual investor and makes no recommendations regarding specific investment opportunities. This report has been prepared for and is to be used exclusively by CityVest Capital Inc., unless as otherwise specifically indicated in the report.

Catalyst Fund Management Team

Catalyst has assembled a team of motivated real estate professionals with a combined 100+ years.

  • Glenn Hanson

    Glenn Hanson

    Founder and CEO

  • David Kaufman

    David Kaufman

    President and CIO

  • Linda Fieldhouse

    Linda Fieldhouse

    Controller

  • Nicholas Malehorn

    Nicholas Malehorn

    Vice President, Acquisitions and Portfolio Management

Founder and CEO

Over 30 years of multifamily experience
Over 35 years experience managing complex organizations and as a creative entrepreneur
Developed the team, sets the vision, executes strategic plans
Former CEO and Chairman of The Hanson Group, Ltd, a multi-million dollar company
Attended Western New England University

President and CIO

Over 30 years of multifamily experience, capital markets, and operational experience
Sources off-market, value-add investment opportunities and oversees through exit
Former acquisition analyst with privately held national real estate firm
Former risk-arbitrage analyst for US based hedge fund
Graduate of the University of Michigan

Controller

Directs all financial and operational management
20+ years in financial leadership
Former VP Finance for major general contractor
Successful track record of ensuring regulatory and legal compliance

Vice President, Acquisitions and Portfolio Management

Over 15 years experience in real estate acquisition, capital markets and portfolio management
Sourced value-add investments; managed the due diligence process and portfolio management
Former Director of Portfolio Management for a leading global real estate investment firm with $49B AUM
Graduate of University of Maryland; Masters Degree, University of Miami, Business and Finance

  • Bob Sutherby

    Bob Sutherby

    CFO

  • Krista Hanson

    Krista Hanson

    Director of Logistics and Design

  • Julian Vogel

    Julian Vogel

    Fund Manager

  • Robert Dominy

    Robert Dominy

    Senior Asset Manager

Chief Financial Officer/b>

Real estate financial executive, accomplished in controllership levels of asset and property management, corporate accounting and development.
Directed portfolio accounting and reporting activities of core-plus value/add closed-end commercial real estate funds generating annual revenues of over $350MM.
Led the accounting and treasury onboarding of a $1.6B light industrial portfolio comprising 30MM sq. ft. across 16 major US markets.
Experienced in REIT compliance, lender financial reporting, restricted and cash monitoring.
Graduate of Boston College.

Director of Logistics and Design

Over 30 years experience in commercial interior design
Redesigns amenities, model apartments; upgrades apartments, exterior amenities
Former Partner of Spec’s Design Group
Former Facilities Design Director at one of the nation’s largest insurers
Graduate of WNE University, BS Mathematics, and UMASS Amherst, MS Interior Design

Debt and Equity Strategist

8 years experience in CRE acquisitions, repositioning and capital markets
Worked on the financial structuring and sourcing of over $400 million worth of CRE
Extensive experience underwriting and analyzing majority of CRE deal scenarios
Former VP at top 15 commercial mortgage brokerage firm
Graduate of Yeshiva University, Sy SymsSchool of Business -NYC

Vice President, Acquisitions and Portfolio Management

Over 15 years experience in real estate acquisition, capital markets and portfolio management
Sourced value-add investments; managed the due diligence process and portfolio management
Former Director of Portfolio Management for a leading global real estate investment firm with $49B AUM
Graduate of University of Maryland; Masters Degree, University of Miami, Business and Finance

  • David Crain

    David Crain

    Asset Manager

  • Michael Alves

    Michael Alves

    Sr. Controller

  • Laura Decker

    Laura Decker

    Senior Transaction Manager

  • Frank Monastero

    Frank Monastero

    Project Manager

Asset Manager

Over 35 years commercial real estate management experience
Extensive experience with the rehab and repositioning of multifamily communities
Expert in large portfolio supervision, construction supervision and real estate administration
Direct responsibility for over 200 western and central US multifamily properties

Sr. Controller

Develops and executes standardized procedures
Reviews and coordinates deliverables from third party managers and to joint venture partners
• 35+ years of financial management experience, including several years at the CFO level of real estate investment management firms
• Former founder/owner of a CPA firm

Senior Transaction Manager

Facilitates and coordinates buyer and seller transactions from contract to close.
• Works with VP Acquisitions and Portfolio Management
• 10+ years of property management experience
• Oversaw 40 property, 700,000sf portfolio with $5.5M operating budget
• Project management, budgeting, and financial reporting experience

Project Manager

Manages capital project funding draw requests process
•Works with Accounting and Asset Management Departments
•Formerly generated and coordinated commercial building permitting processes
•Extensive construction project management and compliance experience
•Financial reporting, large project proposal, and forecasting experience

Colony Hills Track Record

Catalyst Properties

* Portfolio Return
** Projected Return

Properties that are part of Catalyst Fund 2

PARAMOUNT AT KINGWOOD

Kingwood, Texas

fund

Investment Summary

  • 372 units and 218,067 rentable square feet.
  • Built in 2000, there were major renovations done by the current owner to 20% of the units. The remaining units and common area units will need to modernized and upgraded.
  • The propertyy is currently 91.1% occupied.
  • Interior Property improvements will include substantial renovations ($15,000/ unrenovated unit) to approximately 298 of the units.
  • The common areas and the exterior will need to be updated as well ($3,962/unit). Improvements will include the enhancement of the pool area, the replacement of the roof, the removal of the fountain, painting and property beautification.
  • Post renovation and property improvements, CHC will increase current rents to be in line with comparative properties in the market (an average $290/unit premium).

Opportunity

Catalyst Real Estate Fund II participated alongside Catalyst Real Estate Fund I with a $700,000 investment in the acquisition of Paramount at Kingwood. The acquisition was an off-market multifamily acquisition located in northeast Houston, TX in Kingwood. The property benefits from an excellent location near all services, schools, retail and employment nodes. Paramount at Kingwood totals 372 units ranging from one- to three-bedroom units. It features a wide array of on-site amenities including a resort-style pool, clubhouse, business resource center and a fitness center. Built in 2000, the asset has been maintained in great condition and offers an excellent value-add opportunity. The current owner has renovated 20% of units allowing for a future investor to continue with the modernization program which can generate up to 28% rent uplift. Per extensive analysis of the property economics and the market competition, and consistent with our successful model, CHC has underwritten a projected, average $290/unit lift to the current rents post interior and exterior renovations.

Investment Summary

Location

East Point, GA

Acquisition Cost

$72,000,000

Equity

$18,500,000

Asset Class

Multi-Family Housing

Purchase Date

March 2022

Business Plan

Value-Add

# of Units

372

Occupation

91%

Post Renovation Unit Rent Increase

$290/unit

Projected IRR

20%

Projected Cash-On-Cash

7.8%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

LANDMARK AT CYPRESS FALLS

Houston, Texas

fund

Investment Summary

  • 312 units and 321,936 rentable square feet.
  • Built in 2008, the current Seller is the original developer and has not spent any significant dollars on capital improvements.
  • Property is currently 99%occupied
  • Interior Property improvements will include substantial renovations ($12,500/unit) to 100% of the units, the installment of washer/dryer stacks to 100% of the units ($1,000/unit), and the installment of private, gated yards to 40 of the ground-floor units ($1,500/unit). The weighted average capex will be approximately $13,700/unit for the interiors.
  • Exterior property improvements will include ($5,288/unit) the enhancement of the fitness center and clubhouse, the addition of a dog park and covered parking, pool area refurbishment, painting and significant landscaping.
  • Post renovation and property improvements, CHC will increase current rents to be in line with comparative properties in the market (an average $345/unit premium).

Opportunity

Catalyst Real Estate Fund II has signed a Purchase and Sale Agreement for the projected June 2022 acquisition of Landmark at Cypress Falls. The property is a class B+, workforce housing acquisition located in the Cypress submarket of Houston, TX. The property is ideally located near top rated retail, schooling, strong employment, recreation and it is situated right next to Route 290. Landmark is positioned to benefit in a major way from interior and exterior value add investments. The Seller is the original developer and has spent little to no money on property improvements since development. The property requires some polishing to several of its amenities and renovation to 100% of the units in order to compete in the submarket. Per extensive analysis of the property economics and the market competition, and consistent with our successful model, CHC has underwritten a projected, average $345/unit lift to the current rents post interior and exterior renovations.

Investment Summary

Location

East Point, GA

Acquisition Cost

$72,000,000

Equity

$18,850,000

Asset Class

Multi-Family Housing

Purchase Date

TBD

Business Plan

Value-Add

# of Units

321

Occupation

99%

Post Renovation Unit Rent Increase

$345/unit

Projected IRR

21.30%

Projected Cash-On-Cash

5.10%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

WILDWOOD FOREST APARTMENTS

Spring, Texas

fund

Investment Summary

  • 252 units and 258,036 rentable square feet.
  • Built in 1997, the current Seller has spent approximately $1 million dollars on 30% of the interiors and parts of the exterior of the property.
  • The property is currently 95% occupied
  • Interior Property improvements will include substantial renovations ($15,000/unit) to 67% of the units, and partial renovations ($2,500/unit) to 33% of the units. The weighted average capex will be approximately $11,230/unit for the interiors.
  • Exterior property improvements will include ($3,968/unit) the enhancement of the fitness center and clubhouse, the addition of a playground, upgrades to the car wash area, pool area refurbishment, installment of security cameras and significant landscaping.
  • Post renovation and property improvements, CHC will increase current rents to be in line with comparative properties in the market (an average $260/unit premium).

Opportunity

Catalyst Real Estate Fund II has signed a Purchase and Sale Agreement for the projected June 2022 acquisition of Wildwood Forest Apartments. The proeprty is a class B+, workforce housing acquisition located in Spring, TX (29 miles north of CBD Houston). The property is ideally located near top rated retail, schooling, strong employment, recreation and it is situated right next to Interstate 45. Wildwood is positioned to benefit in a major way from interior and exterior value add investments. The Seller has spent a little over $1 million on the exterior and interior of the property. However, the property requires some polishing to several of its amenities and full renovation to 70% of the units, and partial renovation to 30% of units, in order to compete in the submarket. Per extensive analysis of the property economics and the market competition, and consistent with our successful model, CHC has underwritten a projected, average $260/unit lift to the current rents post interior and exterior renovations.

Investment Summary

Location

Spring, TX

Acquisition Cost

$60,000,000

Equity

$16,000,000

Asset Class

Multi-Family Housing

Purchase Date

TBD

Business Plan

Value-Add

# of Units

252

Occupation

95%

Post Renovation Unit Rent Increase

$260/unit

Projected IRR

23%

Projected Cash-On-Cash

6.00%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

ANATOLE APARTMENTS

Daytona Beach, Florida

fund

Investment Summary

  • 208 units and 150,520 rentable square feet.
  • Built in 1986, the current Seller has spent significant money on the exterior of the property as well as putting into place quality amenities.
  • Property is currently 94% occupied
  • Interior Property improvements will include substantial renovations ($10,000/unit) to 178 of the units, the replacement of washer/dryer stacks in 50 units ($1,000/unit), and minor renovations to 30 of the previously renovated units ($5,000/unit). The weighted average interior capex will be approximately $9,520/unit for the interiors.
  • Exterior property improvements will include ($5,168/unit) the enhancement of the fitness center, clubhouse, dog park and pickleball court, pool area refurbishment, painting/siding, significant landscaping.
  • Post renovation and property improvements, CHC will increase current rents to be in line with comparative properties in the market (an average $360/unit premium).

Opportunity

Anatole Apartments is a class B, workforce housing acquisition located in Daytona Beach, FL. The property is ideally located near Atlantic beaches, the Daytona Beach International Airport, the Volusia Mall, the Halifax Health Medical Center, the Daytona Speedway and the One Daytona shopping complex as well as major employment centers. Anatole is positioned to benefit in a major way from interior and exterior value add investments. The Seller has only renovated 30 units but has spent significant money putting into place quality amenities and improving the exterior of the property. The property requires some additional amenities, however, and full renovation to 178 of the units in order to compete in the submarket. Per extensive analysis of the property economics and the market competition, and consistent with our successful model, CHC has underwritten a projected, average $360/unit lift to the current rents post interior and exterior renovations.

Investment Summary

Location

Daytona Beach, FL

Acquisition Cost

$49,670,000

Equity

$13,670,000

Asset Class

Multi-Family Housing

Purchase Date

Targeting July/August

Business Plan

Value-Add

# of Units

208

Occupation

94%

Post Renovation Unit Rent Increase

$360/unit

Projected IRR

22.70%

Projected Cash-On-Cash

5.10%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

Properties that are part of Catalyst Fund 1

Lakeshire Village Apartments

East Point, Georgia

fund

Investment Summary

  • 284 units and 276,360 rentable square footage
  • Built in 1971, fully renovated in 2004. Current owner utilized the LIHTC program in 2003, which has two 15-year terms, and spent, on average, $35,000/unit in renovations.
  • Property is currently 98% occupied
  • Property improvements will include light interior renovations ($1,000/unit) and the addition of several amenities: a playground, a dog park/pet station, common area WiFi, a sports court next to the existing pool area, a community and fitness center, as well as new grilling stations along with sitting areas.
  • Post renovation and property improvements, CHC expects to increase the current rents closer to comparative LIHTC units (a $105-$155/unit premium).
  • On a 5-year hold, Colony Hills Capital projects deal level IRR of 25% based on an exit cap rate of 6%. The average cash-on-cash return is projected to be 14%.

Investment Summary

Location

East Point, GA

Acquisition Cost

$26,564,050

Equity

$8,724,050

Asset Class

Multi-Family Housing

Purchase Date

September 2020

Business Plan

Value-Add

# of Units

284

Occupation

98%

Post Renovation Unit Rent Increase

$105-$155/unit

Projected IRR

25%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

Chapel Run

Decatur, Georgia

fund

Investment Summary

  • Chapel Run islocated at 4522 SnapfingerWoods Dr., Decatur, Georgia 30035.
  • 172 units and 392,040 rentable square feet.
  • Built in 2000 using Low-income housing tax credits and excellently maintained.
  • Property is currently 98%occupied
  • Interior Property improvements will include very minor renovations ($436/unit) to the units as they are up to date and maintained well.
  • Exterior property improvements will include ($4,070/unit) renovation of the club house and the instalment of a fitness center, window and door replacements, painting, playground renovation, dog park/pet station, landscaping and property beautification.
  • Post renovation and property improvements, CHC will increase current rents to be in line with comparative properties in the market (an approximate average of $124/unit premium)

Investment Summary

Location

Decatur, GA

Acquisition Cost

$20,500,000

Closing Costs

$1,734,000

Total Capital Stack

$23,094,000

Capital Improvements

$860,000

Asset Class

Multi-Family Housing

Business Plan

Value-Add

Expected Hold Duration

5 Years

# of Units

172

Post Renovation Unit Rent Increase

$124/unit

Projected IRR

26.4%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

Nottingham Village Apartments

Houston, Texas

fund

Investment Summary

  • Nottingham Village Apartments islocated at 14250 Kimberley Lane , Houston, Texas 77079.
  • 317 units and 478,580 rentable square feet.
  • Built in 1971, there were major renovations done in 2007, and then renovated further over the last few years. Renovations included: significant exterior work (new roofs, siding, electrical, plumbing, AC, pool, etc.) and 50% of the units were upgraded (new floors, cabinets, bathroom ceramic tile, kitchen appliances, etc.).
  • Property is currently 92%occupied
  • Interior Property improvements will include substantial renovations ($12,500/unit) to 53% of the units, and light renovations ($2,000/unit) to 145 of the units previously renovated by the seller. The weighted average capex will be $7,650/unit for the interiors.
  • Exterior property improvements will include ($4,600/unit) the addition of a new fitness center, clubhouse renovation, playground, dog park/pet station, pool area refurbishment, landscaping and property beautification.
  • Post renovation and property improvements, CHC will increase current rents to be in line with comparative properties in the market (an average $200/unit premium).

Investment Summary

Location

Houston, TX

Acquisition Cost

$46,000,000

Closing Costs

$2,510,000

Total Capital Stack

$53,240,000

Capital Improvements

$4,730,000

Asset Class

Multi-Family Housing

Business Plan

Value-Add

# of Units

317

Post Renovation Unit Rent Increase

$200/unit

Projected IRR

21%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

Prior Acquisitions of Colony Hills

Mobile Portfolio

Mobile, Alabama

fund

Investment Summary

  • Acquired off-market, family owned and managed 5 property, 2013 unit portfolio in May 2013 for $98,000,000
  • Bought well: Assets were undermanaged and underperforming relative to their true market value
  • Assets located in a thriving submarket with strong economic drivers, in proximity to the airport, professional employment, retail and dining
  • Best-in-class management systems implemented: restructured marketing/leasing, employee training and expense reduction through efficient practices
  • $7 Million in capital improvements: renovate unit interiors, modernize leasing offices and clubhouses, add state-of-the-art fitness centers, upgrade and add exterior amenities, signage and landscaping, reposition the properties
  • Year 1 NOI was $2,851,613, NOI upon exit was $5,280,059. Sold after five years for $134,300,000
  • Levered IRR of 34%

Investment Summary

Location

Mobile, AL

Project Cost

$98,000,000

Capital Improvements

$7,000,000

Asset Class

Multi-Family Housing

Purchase Date

May 2013

Business Plan

Value-Add

Year 1 NOI

$2,851,613

Exit NOI

$5,280,059

Sold Date

2018

Sold Amount

$134,300,000

Levered IRR

34%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

Canterbury Townhome Apartments

Jonesboro, Georgia

fund

Investment Summary

  • Acquired off-market 160 unit 3-bedroom community from the Clayton County Housing Commission in October 2015 for $7,050,000
  • Bought well: Asset undermanaged and in need of capital improvements
  • Asset located very near WynthropeForest, in a thriving submarket with strong economic drivers, in proximity to the airport, retail and dining
  • $1.5 Million in capital improvements to renovate unit interiors, the leasing office and clubhouse, add a fitness center, upgradeand add exterior amenities, signage and landscaping,
  • create a gated community, rebrand, rename, and reposition as a market leader
  • Year 1 NOI was $228,030, NOI upon exit was $817,851. Sold after twenty eight months for $12,500,000
  • Levered IRR of 41%

Investment Summary

Location

Jonesboro, GA

Acquisition Cost

$7,050,000

Capital Improvements

$1,500,000

Asset Class

Multi-Family Housing

Purchase Date

October 2015

Business Plan

Value-Add

Year 1 NOI

$228,030

Exit NOI

$817,851

Sold Date

February 2018

Sold Amount

$12,500,000

Levered IRR

41%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

Wynthrope Forest

Riverdale, Georgia

fund

Investment Summary

  • Acquired foreclosed, 270 unit property in October 2012 from Fannie Mae for $13,900,000
  • Bought well: Asset was starved for capital, bloated with expenses, and in need of aggressive management
  • Asset located near Atlanta, GA, in proximity to the airport, retail and dining
  • $519,000 in capital improvements: to renovate unit interiors, modernize the leasing office and clubhouse, update fitness center,upgrade exterior amenities, signage and landscaping, and to reposition the property
  • Year 1 NOI was $641,718, upon exit the NOI was $1,427,361. Sold after two and a half years for $20,600,000
  • Levered IRR of 40%

Investment Summary

Location

Riverdale, GA

Acquisition Cost

$13,900,000

Capital Improvements

$519,000

Asset Class

Multi-Family Housing

Purchase Date

October 2012

Business Plan

Value-Add

Year 1 NOI

$641,718

Exit NOI

$1,427,361

Sold Date

April 2015

Sold Amount

$20,600,000

Levered IRR

40%


(*) Fund returns and yields are not guaranteed.

(1) Return Projections based on 5-year hold period and drawn from sponsor’s proforma model.

(2) IRR & Equity Multiple metrics are calculated gross of any fund-level promote or management fees.

Catalyst Access Fund 2 LLC

The following Catalyst Access Fund documents are available to view:

  • Investor Document Package Catalyst Access Fund

  • Entity Investor Document Package Catalyst Access Fund

  • Catalyst Wire Instructions

  • Accredited Investor
    Verification Letter

Catalyst Real Estate Fund II LP Terms

The following Catalyst Fund Documents are available to view:

  • Executive Summary

    The Presentation provides an overview of Catalyst Real Estate Fund II LP and investing in multifamily communities.

  • PPM

    The Private Placement Memorandum (PPM) for prospective investors for the Catalyst Real Estate Fund II LP.

  • Subscription Agreement

    The Subscription Agreement for prospective investors for the Catalyst Real Estate Fund II LP.

  • Limited Partner Agreement

    The Amended and restated Limited Partnership Agreement for the Catalyst Real Estate Fund II LP.

  • Wildwood Forest Investment Presentation

    This document contains a summary of the Catalyst Wildwood Forest Investment Opportunity.

  • Paramount at Kingwood Investment Presentation

    This document contains a summary of the Catalyst Paramount at Kingwood Investment Opportunity.

  • Anatole Apartments Investment Presentation

    This document contains a summary of the Catalyst Anatole Apartments Investment Opportunity.

  • Landmark at Cypress Investment Presentation

    This document contains a summary of the Catalyst Landmark at Cypress Investment Opportunity.

Catalyst Access Fund 2 LLC Terms

Investment Summary

Fund

Catalyst Access Fund 2 LLC (the “Access Fund”)

Purpose

The Access Fund is a feeder fund. The net proceeds raised by the Access Fund will be invested in Catalyst Real Estate Fund II LP.

Fund Managing Member

CV Manager LLC

Access Fund Administrative Fee

The Access Fund will pay CV Manager 1.75% of the Access Fund capital per year for administration and information functions available through the CityVest Investment Dashboard. For investments of $100,000 to $200,000 by an investor, the Administration Fee will be reduced in half in the first year through a rebate of 0.875% back to the investor. For investments over $200,000 by an investor, the Administration Fee will be zero in the first year through a rebate of the full 1.75% fee back to the investor.

Organizational Expenses

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

Minimum Investment Amount

$25,000 on a first-come, first-served basis for up to 99 investors.

Commissions

There are no selling commissions, marketing allowances or broker dealer fees.

Catalyst Fees

There will be no management fees, project fees, property management fees nor acquisition fee charged by Catalyst Fund to the Access Fund.

Distributions

Quarterly, paid out of distributions as received from Catalyst

Targeted Fund Amount

Estimated $5,000,000

Investment Closing Steps

You may initiate your investment by clicking “Invest Now” and following the instructions.

Step 1. DocuSign. Documentation through DocuSign should be completed as soon as possible as investments are accepted on a first-come, first-served basis.
Step 2. Accredited Verification form or documents should be sent immediately after DocuSIgn is completed.
Step 3. Wire Transfer can be sent after the DocuSign is completed, and it will be required within 5 days of request, which will occur when 99 investors have subscribed or as late as May 16th, 2022.

There is a hard closing date of May 16th, 2022 or sooner if the Access Fund reaches 99 investors.

Term

5 years, plus three optional 1 year extensions.

Investment Return

The Access Fund has negotiated a side-letter agreement with Catalyst Real Estate Fund LP to receive a 12% preferred return, followed by 80% of the remaining profit. The Access Fund will then distribute 100% of such amounts received after fees to the Access Fund investors pro rata to their respective capital account.

Fund Administration/Accounting

Accounting, tax and other administration services may be provided by third party providers.

Catalyst Real Estate Fund II LP Terms

Investment Summary

Investment Manager

Colony Hills Capital, LLC through Catalyst Real Estate Management LLC

Targeted Return

20% - 25% Net IRR

Preferred Annual Return

Access Fund:
12% Preferred Return

Direct Investors:
8% Preferred Return

Profit Split Over Preferred Return

Access Fund:
80% Investors / 20% Catalyst Management

Direct Investors:
75% Investors / 25% Catalyst Management

Management Fee

Management Fees, Property Management Fees and Acquisition Fees will not be paid by the Access Fund or Catalyst Fund investors, but rather will be paid at the property level as agreed by each LP investor in each acquisition.

Fund Term

5 years plus three optional 1 year extensions.

Minimum Investment

$100,000

Revised Target Fund Size

$30,000,000

Fund Administrator

SS&C Technologies, Inc.

Legal Counsel

Foley & Lardner LLP

Auditor

EisnerAmperLLP

Important Disclosure Statement for Catalyst:

An investment in the units of Catalyst 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 Catalyst. For this reason, each prospective subscriber for Catalyst should carefully read Catalyst’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 Catalyst. Only qualified, eligible investors may invest in Catalyst.

Catalyst 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. Catalyst intends to diversify its investments by investing in multiple multifamily residential properties throughout the United States. Catalyst intends to hold approximately 20 properties with no single investment representing more than 20% of Catalyst'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 Catalyst’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 Catalyst makes them, which makes an investment in Catalyst more speculative. The investors must rely on the management of Catalyst and to make all investment decisions. There can be no assurances or guarantees that Catalyst’s investment objectives will be realized or Catalyst’s investment strategy will prove successful.

An investment in Catalyst may be affected by a number of factors beyond the control of the management of Catalyst that will affect the value of Catalyst’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 Catalyst, and natural disasters, most of which are not covered by insurance.

Catalyst will operate in a highly competitive market for investment opportunities. Catalyst's profitability depends, in large part, on the ability to acquire profitable investments. In doing so, Catalyst 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 Catalyst. Poor performance of the investment management in selecting investments for Catalyst, or poor performance of any investment, could adversely affect the profitability of Catalyst and the overall return to the investors.

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

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

The investment manager of Catalyst 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 Catalyst 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 Catalyst’s performance. The General Partner and a majority of Limited Partners may agree to amend the Catalyst Agreement, which could be adverse to some limited partners. It is impossible to predict accurately the results from an investment in the Catalyst 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 Catalyst.

The proposed method of operation of Catalyst creates certain inherent conflicts of interest among the Catalyst, Catalyst, the General Partner and their affiliates. The liability of the investment manager is limited. Catalyst and its affiliates may compete with Catalyst's investments and may provide services to the Catalyst or Property Owners. Catalyst 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. Catalyst's and the investment manager's officers and agents will engage in other management activities. A single legal counsel will represent Catalyst, the investment manager, Catalyst 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 Catalyst'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 Catalyst 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 Catalyst are offered without registration under any securities laws due to a reliance on an available exemption. Although, Catalyst’s offering documents are not reviewed or approved by federal or state regulators, Catalyst must comply with a variety of legal and compliance requirements. Failure to comply with the requirements for a private offering exemption would adversely affect Catalyst. Maintenance of an Investment Company Act exemption may impose limits on Catalyst's operations, and if Catalyst becomes subject to the Act, Catalyst 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 CityVest 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 Catalyst will make cash distributions on the Units will be from revenues received from investments made by Catalyst. No assurance can be made that Catalyst 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 Catalyst.

Catalyst’s investment approach has complex tax implications for investors. These ramifications should be reviewed carefully and applied to each investor’s individual circumstances. Catalyst 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 Catalyst with respect to the anticipated future performance of Catalyst. 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 Catalyst 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 Catalyst.

These materials (the “Presentation”) have been provided for informational purposes only and neither constitutes the Memorandum of Catalyst nor provide a comprehensive disclosure of both the terms of investment and risk disclosures associated with an investment in Catalyst. This Presentation is not a complete summary of the terms of Catalyst 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 Catalyst, the Subscription Agreement of Catalyst and other related documentation.

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 Catalyst. 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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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.

Single-Family

A single family residence (SFR) is the most common type of home which is a single family detached, stand-alone structure with its own lot intended for one family.

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

Trion Fund is raising a maximum of $20,000,000