Before
Before
Before
PROJECTED RETURNS*
2.21x - 2.56x
Net Equity Multiple
12.4% - 14.6%
Net IRR
13.1% - 14.4%
Average Cash on Cash (Excluding Exit)
OUR VALUE-ADD
TRACK RECORD
2.3x
Net Equity Multiple*
20.4%
Net IRR*
$63.6M
Total Distributions**
Learn how we transform properties
LEARN MORERose on Bond
1638 47th Ave, Oakland, CA 94601
Rose on Bond
1638 47th Ave, Oakland, CA 94601
VALUE-ADD CASE STUDIES
Our decade-long track record of adding value to multifamily buildings*
Contra Costa
1460 Contra Costa
2.46x Gross Equity Multiple
2.9 Years
Held
Held
$6.4M Total
Profit
Profit
$10.8MTotal Distribution
We purchased this off-market property with rents set at 60% of nearby institutional comparables. With extensive building repurposing and aesthetic upgrades, the rental rates beat those of local comparable properties with a basis of ~$13M.
Eastwood
1715 High St.
2.10xGross Equity Multiple
2.5Years
Held
Held
$1.6M Total
Profit
Profit
$3.0M Total Distribution
1715 High Street is a 33 unit apartment building in Oakland's Fremont. After executing unit upgrades, common area modernization, and building infrastructure improvements, we sold the building in 2016.
2000 Linden
2000 Linden Street
3.76xGross Equity Multiple
9Years
Held
Held
$1.9MTotal
Profit
Profit
$3.4MTotal Distribution
We purchased this property in West Oakland for $1.6M in October 2013. After implementing unit and common area upgrades, we sold this property off-market in April 2022 for $5.2M.
Rose on Bond
1638 47th Ave.
The Rose on Bond project renovated an existing church and adjacent building, converting it into 60 rental apartments consisting of studios, 1 bedrooms, and 2 bedrooms. We acquired the land on which this historic building stood for $1.8M and performed an extensive restoration valued at $13.4M that upgraded the interiors for modern living while maintaining its unique aesthetic. Now restored to its original beauty, this iconic building bridges the gap between the classic Spanish Revival style and elements of 21st century interior design.
Artthaus Grand
220 Grand Ave Oakland, CA
After purchasing the property in 2019 for $3.9M, we completed a 20-month, $6.5M renovation that retained only the shell of the building while modernizing everything else. The result was an expansion in unit count from 8 to 11 (which created a total of 33 rentable suites), thorough upgrades to the units and common areas, and significant aesthetic improvements to the exterior. The property now offers a mix of furnished and unfurnished suites with private kitchenettes, built-in storage, and natural lighting, as well as a community kitchen, package concierge, bike storage, smart locks, and a virtual doorman.
Oakbrook Manor
1232 E 19th St Oakland, CA
When we first encountered Oakbrook Manor, the property was poorly managed, struggling with a 63% occupancy rate. We purchased it at $44M - a ~$9M discount to its pre-Covid value - because it had strong fundamentals, ADU potential, and a stellar location near Lake Merritt. We upgraded both interiors and exteriors, including fresh paint and new electrical systems, added a fitness center, and converted 34 unused garages into 17 well-appointed studios (ADUs). Our value-creation process including densification resulted in a lift of 125 basis points or ~50% increase to project-level NOI over the development period.
Waterstone Terrace
522 1/2 W K St, Benicia, CA
Waterstone Terrace is a 60 unit, 6 building apartment complex located in Benicia, California - a quiet coastal town in the North Bay region of San Francisco. Since acquisition in 2017 for $11.9M, the property has undergone unit upgrades to reflect a more modern look and extensive exterior improvements for a refreshing "park" environment for our residents.
Magnolia Terrace
319 Tabor Ave, Fairfield, CA
The Fairfield portfolio consists of 3 adjacent apartment complexes - Redwood Hills, PineGrove Apartments, and Magnolia Terrace - located in Fairfield, California. Initially, we acquired Redwood and Magnolia in 2017 for $12.2M. Through improvements to the units and common areas, we achieved enough rent growth at the two buildings allowing us to refinance in 2018 and acquire PineGrove at no additional cost. The three buildings are identical in structure with a large courtyard in the middle of the complex - including a pool in each.
* Performance figures shown gross of fees. Past performance is not indicative of future results.
WHY INVEST IN DEL CORONADO
Attractive Basis
Del Coronado is trading at a $10.2M discount to its 2022 list price, despite rising rents at the property. This offers an entry point well below its estimated intrinsic value, with a price/unit of $244K and a price/sf of $287.
Cash Flows From Year 1
We anticipate distributing 5% cash-on-cash to investors starting year 1, with a larger distribution following re-financing resulting in >95% of capital returned to investors by the end of year 5.
Low-Cost Financing Benefits
Riaz Capital enables access to low-rate federal agency loans - not available to most landlords - for initial financing and future refinancing, boosting anticipated cash flows and returns.
Cost-Efficient Value-Enhancement
With capital-light aesthetic enhancements we expect to maintain healthy occupancy and boost property value without substantial structural changes or construction risks.
Stable Building With Historical High Occupancy
With a current 92% occupancy and rising rents since 2021, Del Coronado has demonstrated high historical tenant demand and retention.
Location:
Excellent And Transit-Friendly
Del Coronado is located near quality schools, shopping, and entertainment. The Alameda Ferry Terminal located a mile away and nearby I-80 make for a 20-minute commute by ferry or road to San Francisco.
Location Highlights
Ferry Terminal
Air and Space Museum
Ballena Vista Point
Encinal Junior and Senior High School
Click on the map to view a detailed version
With its terrific location, favorable acquisition cost and current income generation, this property is well suited to investors looking for a lower-risk investment with potential for upside.
Our access to lower-cost financing and our cost-effective property management positions us to drive stronger returns for investors who don't want the hassle of managing their own property.
Riaz Taplin
Principal and Founder
Discover the Opportunity at Del Coronado
Schedule a Call With Our Team
OR
Join Our Upcoming Webinar - ( 20 mins presentation and 10 mins Q&A )
Thursday, September 12, 2024, 10:00 AM PT / 1:00 PM ET
Learn more about:
- Why we consider Del Coronado to be great value
- Our plans for value enhancement, both in-unit and building-wide
- Our access to low rates for initial financing and later refinancing
- Detailed forecasts of cash flows and returns for investors
Garrick Monaghan
Riaz Capital
PLANNED ENHANCEMENTS TO DEL CORONADO
Riaz Capital's value-add strategy for Del Coronado includes making aesthetic upgrades to the exterior and overall presentation of the property,
Renovations
Home Technology
Installation
and Mural Artwork
Enhancements
and Architectural Features
Images are representative of similar enhancements and upgrades carried out at other Riaz Capital value-add properties.
Click to on the images above to view in full screen
Click to on the images above to view in full screen
WHY PARTNER WITH RIAZ CAPITAL?
We create value for residents and investors while implementing smart cost reduction measures.
Smart Acquisitions Using Data
We use advanced loan database analytics and strong broker relationships to identify distressed and under-valued properties before they hit the market
Value-Add Multifamily Specialist
With a 40+ year track record, we manage a $750M portfolio of premium multifamily investments, leveraging IRA incentives for cost-effective solar installations. Our value-add strategy has yielded a 2.3x net Equity Multiple and 20.4% net IRR across 12 value-add exits.*
Professional Property Management
From aesthetic and functional upgrades to ongoing maintenance and tenant management, we take care of all aspects of property management. As an investor, you benefit from property ownership without the hassles of management.
Access to Low-Rate Financing
Our access to low-cost federal agency financing that individuals cannot access on their own enhances the potential financial returns for our investors.
Tech-Enabled Marketing & Operational Efficiency
We leverage technology to reduce leasing and operating costs including an integrated online leasing platform, virtual tours, and keyless entry. We've leased over 200 units without physical tours.
Experience of 100+ 1031-Exchange Transactions
By selling your existing investment property and making an investment with us through a 1031 Exchange process, you can defer capital gains and other taxes. Our experience with 1031 Exchanges helps ensure a seamless transaction process.
*Representative performance of RTS EBMF Fund I from 2016-2022 net of fees. The fund followed a similar strategy of value-add improvements. Past performance is not indicative of future results.
OAKBROOK MANOR -
A SUCCESSFUL VALUE-ADD STRATEGY
When we first encountered Oakbrook Manor at the peak of the COVID-19 pandemic, it was an off-market deal comprising 200 units across three buildings, suffering from poor management and only 63% occupancy.
Acquired for about $220k per unit—a $9 million discount to its pre-pandemic value—our improvements included modernizing common areas, adding 17 new units, and enhancing amenities.
We boosted occupancy to 94% and more than doubled the net operating income, significantly increasing the property’s value.
The property was recently appraised at $293K per unit, reflecting a ~45% increase in the value of the property — an affirmation of the success of our value-add strategy.
About Riaz Capital
Riaz Capital is a Bay Area-based real estate development and asset management company, focused on moderate-income and student housing in California. Operating in the Bay Area since 1977, Riaz Capital has profitably developed housing in California across 160 different residential and multifamily projects.
~$750M
Total Real Estate Assets Under Management
3,600+ Units
Across 56 Buildings
Under Management and Development
20+ Years
of Multifamily Experience in California
RIAZ TAPLIN
Principal and Founder
MAX RESHULSKIY
Chief Portfolio Officer & Partner
SETH LANG
Senior Vice President of Development & Partner
PAUL DICARLO
Chief Investment Officer & Partner
ARIEL BOYCE-SMITH
Human Resources and Legal Affairs
JAMES RAFFETY
Vice President of Asset Management
LISA VILHAUER
Vice President of Design and Entitlement
TIM ROONEY
Vice President of Development
FAQs
Del Coronado has shown strong historical performance metrics. The property has maintained high occupancy rates, currently at 92%, demonstrating consistent demand even as rents at the property have risen since 2021, and robust tenant retention, which offers a stable starting point for value-add strategies.
Del Coronado is situated in Alameda, a market experiencing favorable multifamily rental trends. The property offers competitively priced rental rates and is 92% occupied, comparable to or exceeding the occupancy of nearby properties. Additionally, Del Coronado is positioned well below our estimate of its market value. Detailed rent comparisons and market analyses are available for prospective investors to review.
We forecast a range of outcomes based on the extent of rental recovery:
• IRR : 12.4% - 14.6%
• Equity Multiple : 2.21X - 2.56X
• Cash-on-Cash : 13.1% - 14.4%
• Stabilized ROC : 7.0% - 7.1%
Estimated predictions of performance are not based on actual investment results and are not guarantees of future results.
Riaz Capital can access 5.74% interest-only 5-year fixed-rate Freddie Mac debt at the time of acquisition, due to its track record in value-add multifamily investments, driving predictable and lower interest expense during the initial critical years.
Our current plans involve utilizing our property management partner to leverage local economies of scale and reduce staffing expenses.
An asset management fee of 2% on annual effective gross income will apply, plus additional property-level fees
Profit distribution follows a waterfall structure where:
Tier 1: 100% to investors until the return of adjusted capital contributions.
Tier 2: 100% to investors until they have received an 8% preferred return on adjusted capital.
Tier 3: 100% to the General Partner until it receives 25% of cumulative profits.
Tier 4: 75% to investors and 25% to the General Partner thereafter.
The minimum required investment is $250,000, with potential for lower amounts at the General Partner's discretion.
The investment term is 9 years, with options for two 1-year extensions. Investments in Del Coronado are relatively illiquid, with significant restrictions on transferability, typical of real estate investments.
As with any real estate investment, there are risks including market volatility and potential loss of capital. It’s advised that potential investors consult with their financial and legal advisors to fully understand the investment's implications. Detailed risk disclosures are available for prospective investors to review.
This investment is open to accredited investors only, as defined under the Securities and Exchange Commission’s Regulation D.
The exit strategies may include refinancing or selling the property after achieving stabilization and maximizing its value through strategic management and improvements.
Yes, investors interested in the Del Coronado property can take advantage of 1031 exchange opportunities, including both forward and reverse exchanges, to invest in this opportunity. This allows investors to potentially defer capital gains and other taxes by reinvesting proceeds from previous investments into this property, either by acquiring Del Coronado before selling another asset (reverse exchange) or after (forward exchange).
TO INVEST IN THIS PRIME, VALUE-ADD REAL ESTATE OPPORTUNITY
Safe Harbor
Riaz Capital is offering securities under Rule 506(c) of Regulation D “Investment” to accredited investors. Nothing in this advertisement constitutes an offer to sell or the solicitation of an offer to purchase securities or an interest in the partnership. Any such offer or solicitation may only be made by means of delivery of the Partnership Agreement, Subscription Agreement, and Private Placement Memorandum which will contain material information not included herein and shall supersede, amend and supplement this presentation in its entirety.
This advertisement is provided for informational purposes only and is intended solely for the person to whom it is delivered. This advertisement is to be used only in connection with recipient’s consideration of an investment with Riaz Capital. This presentation is confidential and may not be reproduced or distributed without the express written consent of Riaz Capital. By receipt of the enclosed material and information, the recipient agrees that this confidential information will be permanently kept confidential and will not be used in whole or in part for any purpose other than evaluating the Investment.
In addition to information about the securities, this website may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Any operational projections or financial projections or returns shown on this website are estimated predictions only, are hypothetical, are not based on actual investment results and are not guarantees of future results or actions. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on this website (including historical returns paid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment. Any investment or tax-related information contained herein has been secured from sources that Riaz Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance.
It is advised that you consult an investment advisor, legal advisor, and tax professional to fully understand any potential implications before making an investment in the partnership.
Regulatory Risk
The information contained herein is not directed to any person who is not believed to qualify under the definition of an Accredited Investor under the rules of Regulation D of the 1933 Securities and Exchange Act. The securities are not registered and are offered in reliance of an exemption from registration. Neither FINRA, the SEC, nor any other securities regulator have approved of any of these securities.
Investment Risk
Investments made under Regulation D involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Investors may lose all or a substantial portion of their investment.
An investment in any partnership offered by Riaz Capital involves significant risks and investors should have the financial ability and willingness to accept the risk characteristics of the Investment. Investors should review the Partnership Agreement and Private Placement Memorandum, conduct such investigations and evaluation as they deem necessary or appropriate and consult their own legal, accounting, tax and other advisors in order to make an independent determination of the suitability and consequences of the Investment.
Further, these securities are not listed on any exchange. A secondary market for these securities does not currently exist and may never develop. Investors should not purchase these securities with the expectation that a market eventually will develop. Further, even if a market did exist or develop, the securities have significant restrictions on their transferability.
Performance
This advertisement may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Any operational projections or financial projections or returns shown on this presentation are estimated predictions only, are hypothetical, are not based on actual investment results and are not guarantees of future results or actions. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown.
Performance of the Investment may be volatile, and investors may experience results that differ materially from those shown herein. There can be no assurance that estimated returns or any projections set forth in this presentation will be realized or that actual returns or results will not be materially different than those estimated herein.
In addition, other financial metrics and calculations shown on this presentation (including historical returns paid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment. Any investment information contained herein has been secured from sources that Riaz Capital believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. Nothing on this presentation should be interpreted to state or imply that past results are an indication of future performance.