Matheson Capital is acquiring Villas at Lawson Creek, a 202-unit apartment property located in Boiling Springs, SC, a part of the Greenville-Spartanburg MSA. The property was built in 2009 and is spread across 16.81 acres. Villas at Lawson Creek marks Matheson Capital’s 17th acquisition overall and 13th acquisition in the Carolinas. Villas at Lawson Creek has an average in-place rent of $1,127 and currently boasts ~95% occupancy. The property is being acquired at $162k/unit, well below replacement cos. We are acquiring the property along with a fully amortizing, 3.81% HUD loan at nearly 80% LTV, offering investors unmatched stability and downside protection.

POSITIVE LEVERAGE W/ DAY ONE 10% RETURN-ON-EQUITY

• We are purchasing Villas at Lawson Creek at an insurance adjusted 6% cap rate, providing positive leverage from day one.
• Cash flow and amortization combine to give investors approximately a 10% return on equity from day one.

FULLY AMORTIZING HUD LOAN W/ 3.81% INTEREST RATE

• The property is being acquired along with a 3.81% fixed rate, fully amortizing HUD loan with a 35-year amortization schedule.
• The current loan balance is approximately $26 million, producing a nearly 80% LTV ratio based on the purchase price.

FAST GROWING MARKET WITH LIMITED NEW SUPPLY

• Upstate South Carolina is projected to grow at 28 residents per day.
• Construction starts are falling, and only one new market rate apartment complex is under construction in Spartanburg county, providing favorable supply-demand dynamics.

WELL-MAINTAINED WITH MINIMAL DEFERRED MAINTENANCE