sp10 preferred equity, llc

Individual Accredited Investors

Multi-Family | Opportunistic Growth

Southpointe Apartments* is a build-to-rent product centered around a mid-rise apartment building in the Phoenix Valley. The full site currently includes a hotel owned by Caliber as well as a recently acquired adjacent parcel.

Upon completion, the complex will feature a conversion of the existing hotel tower to high-density units and ground-up development of the surrounding land to low-density, for-rent units: 104 high-density units in the tower and 84 low-density surface units

The hotel tower will include studio, one-bedroom, and two-bedroom units. The surrounding low- density units will be one to three-bedroom units, some with attached garages.

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Potential Benefits

  • Potential to generate up to a 2x multiple on Priority Preferred Units and 1.5x on Current Pay Units.**
  • Located in one of the strongest multifamily markets in the U.S.
    • Phoenix ranks among the top 10 real estate markets in PwC's 2023 Emerging Trends Real Estate report.
    • Second-highest tracked market for in-migrations over the last 5 years****
    • Average market-asking rents up over 20% since the end of 2019 (Q4 2019-Q1 2024)***
  • Multifamily has commanded the bulk of total volume of commercial real estate sales over the last five years***
  • Favorable Supply-Demand Dynamic
    • Strong local employment growth and a lack of new apartments delivered to support that growth.
    • Only 583 units delivered in a 3-mile radius around the Intel Campus since 2018***
    • Only 232 units delivered in a 3-mile radius around Southpointe Apartments since 2018

** Returns are not guaranteed.

*** Source: CoStar Data

**** https://www.cbre.com/insights/articles/retail-markets-in-focus-phoenix

***** Marketing name of asset still to be finalized.

$100K 

MINIMUM INVESTMENT

$30.2M

TARGET RAISE

Conceptual Renderings

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INVESTOR Considerations

Below are selected risk factors associated with an investment in SP10 Preferred Equity, LLC. Investments in Caliber private placements can lose entire value, are illiquid and are speculative.

  • Investment involves high degree of risk; limited liquidity; no public market; suitable only for sophisticated investors;
  • Investment strategy is speculative; returns are not guaranteed and no assurance objectives will be achieved;
  • May pay distributions and fund redemptions from borrowings, offering proceeds, or asset sales with no limits on amounts it may pay from such sources;
  • May invest in securities that involve a higher degree of risk or have valuations that fluctuate dramatically;
  • Access to debt financing may be limited and subject to rate increases, restrictive covenants, or untimely repayment obligations;
  • Involves unique risks associated with real estate investment, including competition for tenants, interest rate risk, occupancy issues, insurance risks, inflation risk, among others.;
  • Offering is not contingent on a minimum capital raise;
  • Multiple conflicts of interest, including compensation arrangements, incentive fee structures, positions held with affiliated entities, co-ownership arrangements, and the purchase of and allocation of investment opportunities.

For a more complete discussion of risk factors, please refer to the SP10 PPM.

168-SKY-061124

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