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.

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.





Conceptual Renderings


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.


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