Cadillac Apartments

Entitlements Complete; Ready to Submit for Permits

Welcome to our newest investment opportunity! This is a deal we have been working on actively for more than two years. It is a 367-unit apartment complex located about 5 minutes from Tesla’s Giga Factory and international headquarters. Tesla already has over 20,000 employees on-site (and growing), and the nearest comparable market-rate apartment complex is more than 5 miles away.

We bought the land more than a year ago, and since then we have been working on entitlements, site plans, and construction documents. We are now raising funds for the construction phase of the project. We are projecting a 24% annualized return over a 4 year span on this investment.

A Growth Neighborhood, in the Path of Progress

The neighborhood is in the midst of profound change. Besides Tesla, dozens of employers and thousands of jobs are inbound to the area. Tesla reports that more than 20,000 employees are already on-site, and the company plans to ultimately employ a staggering 60,000 workers here. Tesla has started building a battery factory next door to the Giga Factory. Blackstone has filed permits for a large logistics warehouse down the street. Many other companies are developing plans to move or expand in the area.

The people working here – and arriving here daily – need housing. But there is little competition nearby: the closest comparable apartment community is more than five miles away. And, after the spike in interest rates over the past 18 months, many developers are shelving or delaying build plans, which will limit supply and put upward pressure on rents.

Strong Returns, Moderate Risk

We have structured this deal to provide strong returns to our investors with a very modest risk profile.

We are offering our passive investors a 10% preferred return on invested capital during the hold period, estimated to be 4 years. After the 10%, investors will receive 80% of profits up to a 16% annualized return, then 70% after that. This “waterfall structure” for profits provides a strong alignment of interests: the sponsors don’t profit unless the investors do as well.