PEAK HOUSING REIT, INC.

A Single Family Rental Housing Portfolio Investment. 8% targeted preferred return, distributions quarterly and a projected 15%, 5- year IRR.


PEAK HOUSING REIT, INC.

A Single Family Rental Housing Portfolio Investment. 8% targeted preferred return, distributions quarterly and a projected 15%, 5- year IRR.

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    Targeted Investor IRR: 15%+
    Investor Preferred Return: 8%
    Targeted Investment Period: Open Ended
    Redemption Rights: Available after 2 years
    Minimum Investment: $25,000
    Property Type: Single Family Homes, Duplexes, Quads
    Distribution Commencement: Oct, 2020
    Distribution Period: Quarterly
    Projected next 12 month cash flow: 4.0% - 6.0%




    PEAK HOUSING REIT, YOUR PATHWAY TO CONSISTENT INCOME AND APPRECIATION WITH SINGLE FAMILY RENTALS

    The PEAK Housing REIT provides investors access to stable dividend income and share price appreciation through a portfolio of single family rental homes and newly constructed Build for Rent communities in the Dallas Ft. Worth Metroplex and neighboring Texas Cities.

    • Investors receive consistent quarterly dividends from the existing portfolio.
    • Share price appreciation is realized as the REIT constructs Build For Rent Communities and as the homes in the portfolio appreciate.
    • Three unique strategies help the portfolio of homes grow, providing for long term cash flow and appreciation to investors.
    • Structured as an open-ended REIT, investors have flexibility of share redemption and dividend reinvestment to compound the growth of their investment.

    THE PEAK GROUP

    We believe Single Family Rentals are the best real estate investment for income and wealth generation. Over the last 20 years we have built a vertically integrated company that has transacted more than $100MM in single family rentals. We invest in SFR because we believe it is the best place for our own capital. That is why we are investing over $4 million of our own money alongside investors in this REIT.

    Offering Summary


    Delivering stable dividend income and share price appreciation

    8% targeted preferred return, distributed quarterly, and a projected 15%, 5-year IRR

    Dividends are shielded by depreciation

    The REIT utilizes accelerated depreciation after constructing new Build for Rent communities, mostly offsetting the rental income produced. This results in nearly tax-free cash flow from the REIT.

    This is the best investment to gain exposure to single family rentals

    An existing portfolio of homes creates consistent dividends while wholesale acquisitions and Build for Rent communities provide share price appreciation.

    Investors choose their investment time horizon

    Structured as an open ended REIT, investors can reinvest dividends to enjoy compounded returns, and request redemption on a biannual basis.

    Demand is here, and it is increasing faster than ever

    Household formations are the fundamental driver of housing demand. An estimated 6.6 million total households are expected to be created over the next 5 years in the United States.

    More households are choosing to rent

    From Millennials who favor flexibility and are saddled with debt, to Baby Boomers looking to downsize and reduce expenses, Single Family Rentals are growing in demand.

    COVID has accelerated demand for Single Family Rentals

    Single Family Rental Homes provide households more space. During COVID, the Peak portfolio leased faster than ever before, and achieved 98% occupancy as well as over 98% collection through October 2020.

    Shortage of housing has put upward pressure on prices

    The lack of new homes being built coming out of The Great Recession has created a housing unit shortage of an estimated 2 million units. A recent study by RCLCO suggests a continued undersupply of SFR for the next 10 years.

    The Investment


    Peak Housing REIT will acquire income producing residential real estate assets in targeted markets around the Dallas Fort Worth, Texas metropolitan area and will expand to other cities in Texas. The Company intends to acquire properties through the use of the following investment strategies:

    • Acquire developed properties at below market values that meet specific renovation and budget criteria to allow for immediate appreciation for the Company upon project completion.
    • Develop “Build-to-Rent” communities in strategic municipalities which support Build to Rent expansion. Though this strategy takes longer to produce revenue than the other channels, economies of scale and our ability to efficiently produce a high volume of properties make this channel an important part of our strategy.
    • Employ targeted marketing campaigns to obtain infill lots for new construction with carefully calculated building design to maximize cash-on-cash returns for the Company investors.
    • Being structured as a REIT enables the acquisition of properties utilizing the 721 exchange tax structure known as an UPREIT. We will target investors of single-family homes who want to maintain cash flow without the day-to-day burden of managing a property. In a 721 exchange, or "UPREIT,” an investor contributes property to a REIT in exchange for units in an operating partnership that will then be converted into shares of the REIT itself.

    We will seek to acquire assets that are expected to produce a project-level internal rate of return (“IRR”) of 15% and projected yearly distributions of 6%-8%.

    Quarterly distributions began in Q3, 2020. Distributions are sent quarterly. Investors have the choice to receive cash distributions, or to reinvest dividends at the then share price.

    In addition, starting in future years, the REIT will target the sale of 5%-10% of assets yearly to support investor share redemptions.

    The Build For Rent Pipeline


    Peak Housing REIT will develop “Build-for-Rent” communities. Construction of these communities will be either 100% done within the REIT, or will be performed within a joint venture where the REIT is the general partner and receives the general partner promote.

    Location


    Dallas Ft. Worth is the primary target market, with the addition of more Texas cities during the first 3-year expansion. Data Driven Decision Making with Zillow market health index, and Zip Code Level Job Growth as well as Urban Land Institute research will help determine future expansion markets.

    See all the homes in the existing portfolio here. https://www.thepeak.group/peak-housing-reit-portfolio

    Strength, Weaknesses, and Common Questions


    About the Sponsor


    We believe Single Family Rentals are the best real estate investment for income and wealth generation. Over the last 20 years we have built a vertically integrated company that has transacted more than $100MM in single family rentals.

    We invest in SFR because we believe it is the best place for our own capital. That is why we are investing over $4 million of our own money alongside investors in this REIT.

    See our whole team here. https://www.thepeak.group/team

    Disclaimer


    The material contained herein does not constitute an offer to sell or a solicitation of any offer to purchase these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful. Offers for the sale of these securities will only be made to investors, who meet certain suitability standards, pursuant to the Peak Housing REIT Inc. Confidential Private Placement Memorandum (the “Memorandum”). Investments in these securities are not suitable for all investors. Investments involve a high degree of risk and should only be considered by investors who can withstand the loss of their entire investment. Prior to purchasing any of these securities, prospective investors should carefully review the Memorandum, including the “Risk Factors” section, and any supplements thereto. Investors should perform their own investigations before considering an investment in these securities and consult their own legal and tax advisors. This information deck is qualified in its entirety by reference to the Memorandum.