JWCM: Vivian DST
Available
Overview
Completed in 2023, The Vivian is a 325-unit Class-A apartment community with high-quality amenities and finishes, thoughtfully situated on the highly desirable Atlanta Beltline. The Property is not only a short walk to over 400K SF of local restaurants, shops, breweries, co-working and recreational spaces, but it is also embedded within the high-demand neighborhood of Capitol View. The Property is designed to attract Atlanta's young professionals, achieving an $89K average household income and an approximately 4.4x Income-to-Rent ratio, benefiting from the proximity to Atlanta's best universities, hospitals, and largest job nodes. Additionally, the Property benefits from multiple state and local tax incentive programs.
Key Investment Features
Structure
Delaware Statutory Trust (DST)
Investment Sponsor
JWCM
Property Type(s)
Multifamily
Location(s)
GA
Occupancy
94.71%
721 Exchange / UPREIT
None
Minimum Investment
$100,000
Investment Strategy
Buy & Hold
Year 1 Yield
5.31%
In-Place Loan
50.55% LTV
Avg. Remaining Lease Term
N/A
Cash Flow Forecast
Year 1
Year 2
Year 3
Year 4
5.31%
5.60%
5.96%
5.76%
Year 5
Year 6
Year 7
Year 8
5.21%
Sold
Sold
Sold
Year 9
Year 10
Sold
Sold
Investment Highlights
The Property benefits from a layered real estate tax incentive structure that materially enhances cash flow. Georgia Statute 48-5-299(c) freeze locks the assessed value for 2025 and 2026, providing near-term tax certainty. Additionally, the Development Authority’s bonds-for-title program offers a 10-year declining abatement, beginning at 50% in 2024 and tapering to 5% by 2033.
The Master Tenant will seek to maintain a mid 90% occupancy range while maximizing rents organically based on the strength and desirability of the submarket and the Property. Additionally, an institutional quality property manager with a known track record of efficiently controlling costs while driving top-line revenue performance will manage the Property. The Trust intends to sell the Property in approximately five to ten years.
Advantages
Tax programs provide substantial income to investors compared to many other multifamily investments.
Underwriting shows a low-to-mid 90% occupancy rate. This is a realistic assumption to use and provides more confidence that income projections will be met.
Weaknesses
As tax abatements end, income falls for investors.
Loan is interest-only for only 7 years.
The loan and tax abatement short life-spans likely means Sponsor will need to exit the property in 5 years or less.