JW Capital Management: JWCM Vivian DST
Investment Overview
The Vivian is a mid-rise style multifamily apartment community located at 1246 Allene Avenue Southwest, Atlanta, Georgia 30310. The Vivian benefits from a significant long-term tax abatement provided by the Fulton County Development Authority through participation in a popular “bond-lease” program under which the Development Authority temporarily owns the fee interest and leases the land and improvements comprising the Property to the Trust until, upon the expiration of the Trust’s lease of the Property, the Trust is obligated to acquire the fee simple interest in the Property.
Offering Strengths
This investment in the Property is designed to provide a compelling long-term opportunity. Favorable submarket demographics, strong nearby employment drivers, and sustained demand for multifamily support continued growth. Combined with the Property’s high quality and proven lease-up velocity, the investment is positioned to deliver attractive results.
Offering Weaknesses
Variable income and reliance on market dynamics is typical with multifamily. However, the sponsor forecasts a steep decrease in income to investors after Year 7. Additional due diligence is required to understand if this forecasted rent increase is likely to impact exit values.
Key Facts
Sponsor: JW Capital Management
Structure: Delaware Statutory Trust (DST)
Location(s): Georgia
Property Type(s): Multifamily
Assumable Loan: 50.55% LTV
Estimated Hold Period: 5 Years
Key Features
1031 Exchange: Yes
721 Exchange/UPREIT: No
Cash-Out Refinance: No
Income Guarantee: No
Distribution Forecast
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Investor Cash Flow | 5.31% | 5.60% | 5.96% | 5.76% | 5.21% | 5.15% | 5.37% | 4.44% | 4.69% | 5.03% |
Sponsor Overview
JW Capital Management is a real estate investment firm that is headquartered in New York City. Since its inception in 2014, JW Capital Management has employed a situationally-opportunistic investment approach that has generated consistent returns irrespective of broader economic cycles. We do this by utilizing a defensive valuation discipline, simplifying disorganized capital structures, instilling an ethos of diligent management and transacting with speed.
Leveraging over 60 years of combined principal investing and advisory experience, JW Capital Management focuses on investments across various asset classes throughout the United States. We engage in a broad range of real estate related activities including asset management and principal investing in debt and equity securities, real property and real estate operating companies.