Overview

Arrowpoint Properties (the “Sponsor”) is seeking to raise approximately $2,550,000 of equity to acquire Arrowpoint at Ashton (formerly known as Ashton Place) (the “Property” or “Ashton”), a 30-unit, garden-style community located in Methuen, MA. The total purchase price of the property is $7,100,000 presenting investors with an opportunity to acquire a highly sought-after asset type in a market that Arrowpoint has been operating in for over twenty years. Arrowpoint considers this asset type as a “light value-add”. This is a strategy with which Arrowpoint’s team is very familiar and has seen significant success over the last two decades. Arrowpoint intends to operate the asset over a five-year hold period, with most of the value-add plan executed in the first year of ownership. Arrowpoint’s principals are seeking to obtain debt financing from Freddie Mac, originated by Marcus & Millichap Capital Markets (MMCM). They have offered very attractive terms with an initial loan amount of $4,970,000 at a fixed interest rate of 5.93% which will be interest only for the first 3 years. Arrowpoint anticipates a sale by the end of year five at a projected exit CAP rate of 6.00%. The sponsor expects this asset to cash flow immediately, producing an attractive first year cash-on-cash return above 6%. Over the five-year hold period, investors should expect to average close to 7.50% cash-on-cash and an internal rate of return (IRR) of 15%.