Passive Investment Opportunity

Lakewood Apartments • Texas City, TX

Lakewood is being sold off market by a highly motivated seller that needs to close by the end of the year. Cloud Capital was approached by the broker due to our reputation and ability to close quickly.

  • Off Market

  • Consistent Cash Flow

  • Tax Advantages

  • Lower Risk than Stocks

  • 9.3%+ Cash on Cash

  • 16.1%+ IRR

  • 2.11 Equity Multiple

  • 18.5%+ Average Annual Return (includes sale)

  • 7% Preferred Return 80/20 Profit Split

Performance is our mission. Cloud Capital does not try to time the real estate cycle. We believe in buying and holding stable, cash-flowing properties with an adequate margin of safety built into our underwriting. This allows our firm to weather challenging economic environments and preserve investor capital.

Invest in Compelling Stories – off-market deal, highly motivated seller, rents $164 below comps

Invest Where Demand Outpaces Supply – Texas City ranked #3 out of 64 submarkets in yr/yr rent growth rates

Buy Below Replacement Cost – we are acquiring Lakewood at a 17k/unit discount to a 5 year older vintage asset and our most competitive comp

Utilize Appropriate Amounts of Leverage – we are boosting cash flow by layering conservative, non-recourse, agency debt at all-time historically low interest rates with 3 years of interest-only payments

Align Interests With Our Investors – we are offering a 7% preferred return with an 80/20 profit split to our investors

Our Competitive Advantage

  • Wall Street Experience –  allows Cloud Capital to structure an optimal capital stack for each investment lowering risk and enhancing investor returns
  • Underwriting is in our DNA – Cloud Capital scrupulously underwrites each investment with our proprietary, institutional-grade models rather than outsourcing  
  • Conservative Investing – we factor in conservative assumptions and do not “reach for the stars” in order to attract capital with unattainable projected returns
  • Focus on Markets We Know – enhances our ability to identify unique opportunities and shortens our response time to get off-market deals under contract
  • Relationship Driven – we partner with best in class operators and property management companies to ensure our business plan is implemented with greater certainty of execution  

Lakewood Apartments Sponsor Team

Own/Invests in over 2,774 MF units across 5 states

Currently developing two multifamily deals

Currently operating six hotels

Utilize proprietary modeling & asset management software

Lakewood is a value-add acquisition that will allow our investors to receive consistent cash flow in the first months of ownership. By implementing a strategic exterior and interior renovation program, we will bolster current in place cash yields further enhancing our investors returns.

Exterior

  • Cedar accent walls and balcony wrapping throughout the property
  • Landscaping enhancements
  • Updated Signage
  • Exterior lighting package
  • Amenity improvements to increase resident retention with opening up pool and BBQ area
  • Dumpster enclosures
  • Installing Washers & Dryers in the newly built laundry and storage facility

Interior

  • 60% of units unrenovated
  • Two-tone neutral paint
  • Grey vinyl plank flooring
  • Brush nickel hardware
  • Kitchen backsplashes
  • Faux stainless steel appliances
  • New countertops
  • Vanity and resurfaced tubs in bathroom
  • Low flow toilets
  • Implement water conservation program
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The Cloud Capital Advantage

At Cloud Capital, we acquire and operate large scale apartment communities. We always strive to put our residents first and it’s been a great advantage. We treat our residents like we treat our family, with kindness, integrity, and honestly each and every day. 

Our decision-making process is centered on our long term goal of being a best in class multifamily operator. By taking a human and residents’ first approach, we find that our residents want to stay at our communities longer to experience first hand the Cloud Capital Advantage. 

What Matters Most?

The Core Values of Cloud Capital

  • Relationships  Our relationships with our investors, lenders, and brokers are priceless. We hold them dear. We are grateful and appreciate the confidence that our investors place in Cloud Capital as sponsors and stewards of their capital. Our investor-partners, are our most important competitive advantage.
  • Perform With Discipline – A long-term time horizon is our competitive advantage. We will never compromise our disciplined approach to sound investment strategies.
  • Superior Investor  Experience – We will continue to offer an industry-leading investor experience.
  • Never Compromise Integrity – We will perform with the highest standards of integrity and honesty in all our endeavors.
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Texas City, Texas

Texas City ranked #3 out of 64 Houston submarkets in 2019 rent growth – Yardi

6 minutes from Starbucks, Chick Fil A, HEB

University of Texas Medical Branch employs over 8,000 and more than 2,500 enrolled students

Close drive to NASA Lyndon B Johnson space center employing over 3000

Moody National Bank, Landry’s, Marathon Petroleum, BP, and Valero.

Houston has been ranked the #2 city in the nation for overall population growth

#1 Fastest-Growing City In America Bisnow, 2018

#1 U.S. Best Places To Live 24/7 wall Street, W. University Place, Sept 2019

#1 Best Market to Purchase MF Assets Ten-X, August 2019

#1 U.S. Best Cities for Millennials The Langston Co., April 2019

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*All offers and sales of any securities will be made only to Accredited Investors, which for natural persons, are investors who meet certain minimum annual income or net worth thresholds or hold certain SEC approved certifications.   Any securities that are offered, are offered in reliance on certain exemptions from the registration requirements of the Securities Act of 1933 (primarily Rule 506C of Regulation D and/or Section 4(a)(2) of the Act) and are not required to comply with specific disclosure requirements that apply to registrations under the Act.
*  The SEC has not passed upon the merits of, or given its approval to any securities offered by CC Lakewood MGR, LLC, the terms of the offering, or the accuracy of completeness of any offering materials.  Any securities that are offered by CC Lakewood MGR, LLC, are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell any securities offered by CC Lakewood MGR, LLC.
* Investing in securities involves risk, and investors should be able to bear the loss of their investment.  Any securities offered by CC Lakewood MGR, LLC are not subject to the protections of the Investment Company Act.
* Any performance data shared by CC Lakewood MGR, LLC, represents past performance and past performance does not guarantee future results.  Neither CC Lakewood MGR, LLC nor any of its funds are required by law to follow any standard methodology when calculating and representing performance date and the performance of any such funds may not be directly comparable to the performance of other private or registered funds.

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Cloud Capital, LLC

c: (404) 545-5150
e: Nathan@CloudCapitalLLC.com
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