Palmwest Capital Fund V
Own part of two properties in Dana Point, both with ocean views and walking distance to downtown.
Deal Snapshot
CAP Rate Pro Forma
4.23%
Purchase Price
$3,370,000
Number of Units
Construction Costs
$1.1M
6 + 2 ADUs
Net Operating Income
$188,864
Projected Cash-Flow Yr 1
$108,995
Palmwest Capital Fund V combines two investment properties into one fund. The adjacent projections are based on Year-1 performance expectations for the fund as a whole. Individualized property projections can be found below.
3 Units + 1 ADU
Located in the highly desirable coastal community of Dana Point, Dolphin Shores Apartment Homes is a three-unit multifamily investment opportunity sitting one mile from Dana Point Harbor.
Value-Add Opportunity: Due to the rental demand in Dana Point, our research suggests rents can be raised 50%+ following our renovation work.
Prime Coastal Location & ADU: With ocean views and the option to add an ADU, the investment will capitalize on premium finishes to appeal to premium renters.
Construction Vision: Create open, modern floorpans and finishes. Create a common area out front for the tenants (string lights), add an ADU in the back with side yard to maximize rent.
3 Units + 1 ADU
Located one block from Dolphin Shores Apartment Homes in Dana Point, Lantern Cove is also a three-unit multifamily investment opportunity sitting one mile from Dana Point Harbor.
Value-Add Opportunity: Due to the rental demand in Dana Point, our research suggests rents can be raised 50%+ following our renovation work.
Prime Coastal Location & ADU: With ocean views and the option to add an ADU, the investment will capitalize on premium finishes to appeal to premium renters.
Construction Vision: Similar to Dolphin Shores, we plan to create open, modern floorpans and finishes. Create a common area out front for the tenants (string lights), add an ADU in the back with side yard to maximize rent.
Invest with Confidence.
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Stability.
Real estate is less volatile than traditional investments, and has historically outperformed the S&P 500. Leverage allows you to buy more for less, and grow your investment through amortization & appreciation.
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Cash-Flow.
All Palmwest Capital Investors receive direct payouts and disbursements through net Cash-flow of the assets acquired. See a growing return on your capital as the asset matures, and Cash-flow improves.
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Appreciation.
We focus on Class A & B multi-family assets in strong demographic and coastal areas of Southern California, that have historically seen significant appreciation, driving value to our Investors.
Excellent Locations. Strong Demographics.
Why Dana Point?
Dana Point is situated on the beautiful Southern California coast, halfway between San Diego and Los Angeles. Known as the “Dolphin and Whale Capital of the World” and famed for the Dana Point Lantern District, Dana Point offers a variety of recreational amenities, a thriving economy, and forthcoming major investments in the downtown core and Harbor District.
Dana Point encompasses 6.5 square miles, and is home to 33,745+ people.
Pro-forma Detail & Financing Expectations.
Investment Strategy
Palmwest intends to leverage one or more of the below strategies for this fund. As leases commence, construction is finalized, and the property is stabilized, Palmwest will make an educated decision as to the investment strategy going forward based on market conditions, property performance, and external indicators.
Hold Both.
If rents beat expectations, and cash-flow is stronger than expected, we may look to hold both properties and refinance down the road when rates come down.
Sell One.
Our most likely approach will be to sell the property that has the lower cash-flow, keeping the top performer and giving Investors a return in the first year.
Sell Both.
If market conditions are strong, and we land above-market rents, we may look to sell both. If we do, Investors will have a 1031 exchange opportunity.
Example Construction Vision
Below is an example of the construction we intend to do to each property. We are budgeting $300K-$400K/ property, which includes the addition of an ADU to each, likely by splitting the bottom unit. The below rendering is of the Lantern Cove property, but Dolphin Shores will be similar.
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Each ADU will be built in either the former garage area of the properties, or by splitting the bottom 2-bed units. Price estimate is $300-$400 PSF.
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Estimated at $25K-$30K/ existing unit.
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The goal is to clean and modernize the exteriors, and improve tenant common areas. Exterior work for both properties are estimated at $50-$65K.
“Those who become wealthy are those who buy assets.”
— Robert T Kiyosaki, Rich Dad, Poor Dad
FAQs
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Investors can see returns in multiple ways, including cash distributions based on prorated share of Cash-flow, tax benefits such as Depreciation, growth in value via Appreciation, and Amortization through debt service. Palmwest handles all accounting and distributions. Investors will receive quarterly reports and projected distributions annually.
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Palmwest Capital’s intent is to hold assets for 10+ years, but we have sole discretion to extend the life or even decrease the life after you have invested. The reason for this is we want to maximize the value of the real estate investments. We do not want to be forced to sell investments when the market is bad, nor do we want to pass up the opportunity to sell investments when the market is great. We are long-term investors and the more time we stay invested in a property, the better chance we have of capturing property appreciation from inflation and rising rents.
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We don’t have a minimum investment, we just hope that any potential investors are looking to make a meaningful investment of $50K or more, but we can certainly consider less depending on individual circumstances or comfort level. Majority of Investors commit $50K-$200K.
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Yes - all current Investors and new investors will have access to future deals.
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Returns and K-1s are distributed annually, however it is possible as assets mature and stabilize, and cash-flow increases, that additional distributions could occur during the year.
