Investments Provide Direct Funding to Real Estate Projects with Metronomic, Inc.
Real Estate is generally a safe and profitable industry for investors, but not all opportunities are equally created.
Rolling out on Thursday, October 19th, thenew MetroCapital Fund offers accredited investors an exceptional opportunity to profit while creating positive economic, social, cultural and environmental impacts on iconic Miami communities, such as Little Havana and Coconut Grove.
MetroCapital Fund will directly fund an existing portfolio of five new-construction multifamily rental buildings that are under development by Metronomic, Inc., a real estate development company based in Coral Gables. The fund is expected to increase development volume for Metronomic and generate returns for investors while transforming urban communities of Miami.
These urban infill rental buildings, ranging between 6 and 35 residential rental apartment buildings, will offer attractive, convenient locations at average-market rental pricing to ensure maximum occupancy. They are expected to be completed and leased within 12-18 months from start of construction.
MetroCapital Fund expects to hold the properties for three-to-five years. During that time, investors are projected to receive an eight-percent preferred return, paid quarterly. The portfolio of properties will be sold to create a capital event, and investors would then receive a 10% “kicker” and a 75% share in any remaining profits.
According to Metronomic President Ricky Trinidad, the fund capitalizes on the development of new construction rental apartment buildings within high-demand urban areas that have near-zero vacancy rates, and on the value appreciation of real estate that takes place within the first three-to-five years of a new-construction apartment building in these communities.
MetroCapital Fund is also an “impact investment” opportunity because of the social, economic and environmental benefits to these communities.
“These properties change lives for the better by transforming communities,” Trinidad said. “They also provide an excellent opportunity to achieve a potentially higher than average return on investment. It is the classic ‘doing-well-by-doing-good’ scenario.”
Trinidad said MetroCapital Fund is also helping clear an important investment hurdle that will create a direct benefit for urban communities of Miami.
“Project acquisition and development funding are barriers that impede the enhancement of urban communities because traditional banks and private lenders are generally limited in their capacities and restrictive in their policies,” he said. “MetroCapital Fund breaks through these barriers so investors can profit and neighborhoods can benefit from comprehensive and strategic urban development.”
The fund currently comprises five Metronomic new-construction multifamily buildings that are currently in various stages of development process: GroveHaus and CocoGrove Town Homes in Coconut Grove, and Plaza Celia, Villas Beny Moré Dos, and Villas Beny Moré Tres in Little Havana.
How The Fund Works - At A Glance
- Offerings will be made once per quarter for five consecutive quarters starting on October 19th.
- Investors can invest up to an aggregate of $4.9M per quarter
- Each quarterly offering will close when the minimum funding amount is reached for the quarter. However, investors may participate in multiple offerings.
- Investors receive a preferred annualized return of eight percent, paid quarterly following the first quarter of investment through the date of the portfolio sale, known as the “Capital Event.”
- Investors receive quarterly financial and project update reports of Fund operations.
- Upon completion and stabilization of the buildings, the Fund will generate rental income and hold each property as a revenue-generating asset until the Capital Event.
- At the time of the Capital Event, the net distribution waterfall, in addition to preferred return payments described above, will be as follows, directly from sale/closing proceeds: 1) Investment capital return; 2) 10% “kicker” per total capital investment paid to investors; 3) 75% of profits paid to investors (pro rata); 4) Balance to Metronomic.
“This is an investment fund backed by solid real estate, operated by a team of experts and located within a desirable niche that sets it apart,” Trinidad said. “It is strategic and professionally planned and managed. This is an excellent impact investment opportunity for investors that seek a profitable return and want to make a difference in communities.”
About MetroCapital Fund
MetroCapital Fund is an exclusive, special purpose vehicle formed to provide direct funding for real estate development projects managed by Metronomic, Inc. The primary purposes of MetroCapital Fund are to facilitate funding and increase development volume for Metronomic; to generate attractive returns for investors; and to transform selected urban communities.
For more information, investors should go to www.metrocapitalfund.com
About Metronomic, Inc.
Metronomic is a Coral Gables, FL-based real estate development company focused on enhancing the communities it serves while creating a profitable venture and demonstrating the highest level of professionalism at every stage of project development. Metronomic’s core values are centered on social and economic improvement, community development, local collaboration and exemplifying industry standards for quality design, planning, construction and development.
Metronomic identifies, assesses, acquires and develops new residential and commercial properties within select markets of the United States on a continual basis. Upon completion of development and construction, Metronomic leases, manages, and/or sells the assets to gain revenues and profit. Visit www.metronomicinc.com for more information.