Sandlapper Student Housing, LLC launches latest program for 1031 exchange buyers
July 8, 2016
Sandlapper Acquires West Georgia Asset
GREENVILLE, SC – A new investment opportunity for real estate investors seeking a 1031 exchange property has just been released by Sandlapper Student Housing (“Sandlapper”). Sandlapper has launched the SL West GA Student Housing, DST (the “Trust”) investment program offering accredited investors the ability to acquire undivided fractional beneficial interests in a Delaware Statutory Trust which is acquiring the Haven West Apartments in Carrollton, GA. With college enrollment reaching near all-time highs, Sandlapper believes there is significant value for investors in the Class A student housing complex because this asset is in an area with current moratoriums on future construction.
The acquisition of Haven West, the 160-unit/568 bedroom student garden-style apartment property, marks the fifth property acquisition and fourth syndication by Sandlapper, a wholly owned subsidiary of Sandlapper Capital Investments, LLC based in Greenville. This acquisition will bring the Sandlapper Student Housing portfolio to more than $113 million in syndicated assets, 860 units and more than 2,000 beds in three states. The property is anticipated to close in the third quarter of 2016.
“We are excited to add this Class A property to our expanding portfolio,” states Trevor L. Gordon, Founder and CEO of Sandlapper Student Housing. “With growing college populations, student housing continues to prove itself as a viable and valuable investment asset class.”
Sandlapper is raising $12.8+ million from accredited investors in the Trust, who expect to earn a 5.8% annualized return in year one. “The DST Structure allows this investment to serve as suitable replacement property ready for identification for the 1031 exchange buyer,” says Gordon. Investors utilizing 1031 investments have 45 days to identify suitable replacement property from the date they sell and close their relinquished investment property.
Built in 2014, the property consists of 216,000+ square feet on almost 18 acres of land, and serves the local student population of the University of West Georgia. The property is currently 93.7% occupied and is continuing leasing for the up-coming school year. “With the University at enrollment in excess of 10,000 and a construction moratorium in the area, our ability to acquire this asset, in this market should prove to be a solid opportunity for our clients,” states Ray Sun, Chief Investment Officer for Sandlapper Student Housing and Sandlapper Capital Investments who serves as the lead underwriter of the Haven West acquisition and architect of the Trust.
This investment will be listed at www.1031rps.com, the 1031 Replacement Property Solutions website recently launched through affiliate SANDLAPPER Securities, who also serves as the placement agent for the Trust. “Accredited investors will be able to qualify and download disclosure information on the offering at 1031rps.com. Potential investors can compare and contrast this offering to all of the available replacement property inventory offered through SANDLAPPER Securities. And while they will not be able to buy interests in the asset from the portal, as those offers and sales must be handled through a licensed broker dealer, they can review documents at their personal convenience.”
SL West GA Student Housing, DST joins the growing stable of current investment opportunities created by Sandlapper Capital Investments and its affiliates including: SL – FL NNN Industrial Portfolio I, DST (6.3% current cash-on-cash return), a portfolio of industrial/office properties in Florida leased to Collis Roofing, the largest roofing company in the State of Florida; TSWR Development SWD Portfolio I, DST (8% current cash-on-cash return), a portfolio with 24 undivided fractional working interests in seven salt water disposal properties serving the oil and gas industry in West Texas and the SL Opportunity Finance, LLC (10% current cash-on-cash return), a preferred equity offering making short-term fully collateralized loans to sponsors of real estate investments seeking bridge or mezzanine capital.
ABOUT SANDLAPPER STUDENT HOUSING, LLC
SANDLAPPER STUDENT HOUSING, LLC is a Greenville based real estate investment company and sponsor of fractional real estate investment programs focused on the acquisitions and management of student housing apartment complexes around the country. Founded in 2014 to capitalize on the growing demand for non-dormitory student housing, Sandlapper Student Housing has acquired and syndicated more than $113 million in student housing properties with more than 860 units and 2,000 beds (upon completion of SL West GA Student Housing , DST). The firm is a wholly owned subsidiary of Sandlapper Capital Investments, LLC, an award winning opportunistic investment firm and sponsor of private placement securities offerings covering a wide section of industries and asset classes. The principals of the firm, founders Trevor Gordon and Jack Bixler, have extensive experience with real estate acquisitions, syndications and management having acquired, syndicated and managed in excess of $1.1 billion in assets covering more than 10 million square feet nationwide since 2002.
