Real Estate | United States Multifamily Development - E174/SU (CRIREE174SU)
166 days to go
Why do we like this opportunity?
Investment Summary
In partnership with Realty Mogul, a benchmark in US real estate crowdfunding, Hurst is offering investors the opportunity to participate in the indirect acquisition of Woodford Ridge, a class A complex with 93 rental homes totaling 9,020m² in Bonaire, near Atlanta, Georgia. Newly built in 2024, the development is located next to a US Air Force base, which employs 24,500 people. The project will be managed by DCS Peach Blossom, LLC, which will lease the property prior to its sale to investors focused on monthly income.
Profitability
The estimated return on the operation is 19.4% in USD (dollar + 19.4% p.a.), for a real asset in the most developed economy on the planet. For comparison's sake, the 2-year US treasury rate on 01/17/2025, according to CNBC, is 4.28% per year, while the main US stock market index, the S&P500, yielded an average of 10.26% annualized between 1957 and the end of 2023, according to an analysis by Investopedia, as shown in the graph below. In other words, the profitability of this operation can be considered attractive compared to popular alternatives in the same country and currency.
Strong currency
The operation is denominated in US dollars (USD), the world's most widely circulated currency, which appreciated 243% against the Real between January 2000 and December 2024. It is also worth remembering that at the launch of the real plan, the currency had a parity of 1:1 with the dollar, and is now worth 6 times less.
No risk of construction/work
The development was recently completed and received its license at the end of January 2025. In other words, the investor will participate in the development of a new development without running any risk of renovation and construction in the base scenario.
Competitive rental position
Woodruff Property Management will do the condominium management and leasing work. It has been in business for 45 years and manages more than 7,000 multifamily units. The projected vacancy of the development at the time of the sale is 10%, conservative in relation to the 6.5% vacancy rate of the market as a whole (internal data from the material provided by JLL), and even more so in relation to the 4.6% of the comparatives below. In addition, Woodford is the newest development in the area and still has a more affordable rent than the average of its competitors, as shown in JLL's data, thus facilitating the leasing work.
Experienced developer
As explained above, we have a partner with experience in this type of project and knowledge of the region.
Projected scenarios
See how much your money can earn with this operation
Pessimistic Scenario
Base Scenario
Optimistic Scenario
*Simulation projected at a return of 19.4% p.a. based on analysis by Hurst Capital experts. There is no guarantee that the estimate will materialize.
Risks
Market risk
Worsening market conditions can drive down sale and rental prices and increase vacancy and the time it takes to sell assets.
Structure Risk
Due to the lack of maturity, tradition and jurisprudence in the Brazilian capital market with regard to VC operations, in stress situations there may be losses on the part of Investors due to the expenditure of time and resources to make the contractual framework effective.
Realty Mogul's risk
If the company goes bankrupt or suspends its operations during the investment period, communication with the partner can be difficult.
Partner risk
The operation is active and depends on Reynolds' performance, so any operating errors, among others, on the part of Reynolds can impact the results of the operation
Risk of Liquidation of Separate Assets
In the event of any Settlement Event of the Separate Equity, there may not be sufficient funds in the Separate Equity for the Issuer to make full prepayment of the Certificates
The Issuer's ability to honor its obligations
The Issuer's ability to honor its obligations under the RCs depends exclusively on payment by the debtors of the Credit Rights. If the amount received is not sufficient to settle the CRs, the Issuer will not have any other sources of funds to pay any balances to investors.
Leverage risk
The acquisition is partially financed via debt, so although there is a capital reserve/provision of US$767,701 in addition to the income from the venture, there is a remote risk of seizure and disposal if both are not sufficient to honor it.
Documents
Disclaimer
The offer presented by the Platform is automatically exempt from registration by the Brazilian Securities and Exchange Commission (CVM), under the terms of CVM Resolution 88 and Circular Letters 4/2023 and 6/2023 issued by the Superintendence.
CVM's Securitization Supervision Department (SSE). The CVM does not analyze offers under this Resolution in advance. The CVM does not guarantee the veracity of the information provided or the adequacy of the offers.
to current legislation. Before accepting an offer, please read the essential information on the offer carefully, especially the risk warning section.
The presentation was prepared by "Hurst Serviços de Investimento Coletivo e Securitização S.A." ("Platform") for information purposes only and is in no way a binding offer. All the conditions and terms of the Transaction are set out in the documents "Credit Rights Securitization Agreement and Issuance of Receivables Certificates by Hurst Serviços de Investimento Coletivo e Securitização S.A.", signed by the Platform and "Commitment to Subscribe to Receivables Certificates, with Adhesion and Risk Acknowledgement Agreement" ("Transaction Agreements"), to be signed by investors, in order to adhere to the terms of the offer. The operation described on this page is adherence to the public offer for the distribution of Receivables Certificates backed by credit rights.
The term of the operation and the calculated profitability have been projected based on the expectation of Woodford's sale and lease values and terms based on market data obtained from Realty Mogul. The Platform does not undertake to guarantee the accuracy of the information and forecasts provided here, nor to update the presentation, and may change its content without prior notice.
The Platform makes no representations or warranties that the information contained in this presentation or the presentation itself is complete or accurate, nor for any omission in this presentation or in any oral communication transmitted to the recipient throughout its analysis, undertaking only to take all precautions and act with high standards of diligence to ensure that the information transmitted is true, consistent, correct
and sufficient.
These statements, estimates and projections reflect the assumptions of the Platform and third parties, and are subject to economic and market uncertainties and contingencies in the biotechnology market, most of which are beyond the Platform's control. Forecasts and results may differ from those anticipated and these differences may be significant. The content is not yet, nor does it contain any recommendation, indication and/or investment advice.
it is the sole and exclusive responsibility of the investor to make this decision. Should any investor decide to invest in this operation, as with any investment, the investment in Receivables Certificates presents risks and possibilities.
of equity losses that should be carefully considered before making an investment decision.
Potential investors interested in this operation are advised to consult their lawyers, accountants, financial advisors and any other professionals they deem necessary to help them assess the suitability of the investment profile, as well as the risks inherent in the business. All investments involve risk, including the risk of losing all capital invested. Diversification and alternative asset allocation do not guarantee a profit or guarantee against loss. Investment decisions should be based on the investor's objectives, time horizon and risk tolerance.