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Inner City Opportunity Zone, LLC

Developing Communities
INVEST

43dd21hh

Time left to invest

min$10k

max$1070k

funding goal 

$10k - $1070k

funding goal 

Regulation CF

exemption used 

Regulation CF

exemption used 

$2,500,000

pre money valuation 

$300.00

min investment 

$0

amount committed 

0

investors 


Security Type
Convertible Notes

Pitch

Who are we

Inner City Opportunity Zone LLC is a privately-owned real estate investment company. Our company identifies, acquires, renovates, and actively manages real estate for institutional and private clients. We specialize in repositioning distressed and underperforming multifamily properties into investment-grade assets that produce high yield risk-adjusted returns.

 

 

ICOZ LLC’s Investment Strategy is focused on value-added opportunity zone investments in small to mid-cap sized transactions typically requiring an equity commitment of $100K to $2M. We seek to achieve mid-to-high teen internal rates of return and nominal returns reflecting a multiple of 1.5 times its initial investment. Most investments are initially capitalized with leverage of 70-75% of cost and underwritten for a 3 to 7-year hold period.

 

Problem

ICOZ LLC considers investment in multifamily properties to be very attractive based upon the combination of rental demand, location, physical condition, and return targets. Projected capital expenditures giving rise to rent increases will result in higher net operating income and related investor rates of return on invested capital. Current returns will be aided by the higher rents while capital improvements should support a lower cap rate upon eventual sale or refinance. 

 

  • Capitalization Rate: 8%-10%
  • Debt: 75% Loan to Value
  • Investment Period - 3-7 Year Hold
  • Returns – 8%
  • Target Market – Southeastern Florida

 

Solution

Why Invest in Multi-family Properties?

Investors have a wide range of choices when it comes to real estate investing. Those looking to diversify their portfolio may be considering income-producing real estate, such as multifamily housing. There are many benefits, including tax breaks and loan opportunities, that can make multi-unit rental investing a wise choice. Here are some key reasons why you should consider investing in a multifamily housing property:

 

4 Reasons to Invest in Multifamily Housing

 

  1. Increased Cash Flow
  2. Multifamily Properties Hold Their Value
  3. Tax Breaks
  4. Demand Projected to Increase

 

What is Multifamily Housing?

A multifamily residential property, also known as multifamily housing, refers to more than one housing unit contained in one building or group of buildings. This term includes a range of building types depending on the number of units involved, construction style, and amenities provided. Examples include duplexes, triplexes, quadplexes, apartment complexes, and townhomes.

 

Multifamily housing can be aimed at different markets, such as affordable housing for students, low-income residents, or luxury renters. Certain types of housing may also be eligible for government subsidies by performing certain renting activities, ranging from the Section-8 program to residential assisted living facilities.

 

Generally, when a property has four units or less it is considered residential property; otherwise, it is labeled a commercial property. How the property is zoned will determine the appropriate rental activity. The number of units will also impact the type of financing you will need and the rate of return you might expect.

 

Inner City Opportunity Zone LLC - Investing in Opportunity Zones

Opportunity Zones are census tracts, nominated by governors and certified by the U.S. Department of the Treasury, into which investors can invest in new projects intended to spur economic development in exchange for certain federal tax benefits.

 

Opportunity Funds

Opportunity Funds are investment vehicles that invest at least 90% of their capital in Qualified Opportunity Zones. The fund model enables investors to pool their resources in Opportunity Zones, increasing the scale of capital going to investments selected by the manager.

 

To capture the potential tax benefits offered by an Opportunity Fund, an investor must invest the gains from a sale of a prior investment (e.g., stock, bonds, real estate, a company) into an Opportunity Fund within 180 days of the sale of that investment. The investor only must roll in the gain or profits from the sale of the investment, not the original principal of the investment. Moreover, only the taxable gains rolled over into an Opportunity Fund are eligible to receive the tax incentives.

 

 

Achievement & Traction

ICOZ LLC considers investment in multifamily properties to be very attractive based upon the combination of rental demand, location, physical condition, and return targets. Projected capital expenditures giving rise to rent increases will result in higher net operating income and related investor rates of return on invested capital. Current returns will be aided by the higher rents while capital improvements should support a lower cap rate upon eventual sale or refinance. 

 

  • Capitalization Rate: 8%-10%
  • Debt: 75% Loan to Value
  • Investment Period - 3-7 Year Hold
  • Returns – 8%
  • Target Market – Southeastern Florida

 

Market

Investing in real estate has multiple benefits especially in the multifamily housing sector. As of 2019, 65% of all US residents are renters and this number is steadily increasing, there has been a shift from traditional home ownership to renting, this change has created a great opportunity for real estate investors like us.

 

 

Competition

Most of our competitors are small investors “Mom and pop” shops that typically buy multifamily properties that are 10 units and under. This provides us an opportunity to become a big fish in a small pond. With our ability to raise capital through this crowdfunding campaign, we have created a strategic advantage to acquire multiple 10 unit and under multifamily properties within a small market.

 

As the deal unit size increases, 20 to 100 units and more, there are mostly high wealth individuals, hedge funds, REITs that compete at these levels.

 

Our programmatic approach to multifamily investments and acquiring 10 units and under allows us to focus on properties that produce higher yields/returns.

 

Business Model

Proactive Sourcing Strategy:

 

ICOF’s Management Team has developed an extensive network of contacts including owners, developers, brokers, bankers, and consultants, which results in a strong flow of acquisition opportunities that are often not subject to intensive competitive processes.

 

Of the direct investments that the management team has made, more than 50% were sourced by members of the Management Team through their private contacts in the investment community, rather than in response to a broadly-based marketing program. ICOF believes its strategy of seeking opportunities on a privately negotiated basis where there is limited competition enables our targets to achieve more favorable pricing and terms.

 

 Due Diligence: Acquisition and Financing

 

  • Coordination of entire due diligence process
  • Analyze and interpret market, demographic, and economic data
  • Evaluate asset, location, and site characteristics 
  • Conduct financial review and analysis (historical and proforma, including sensitivities)
  • Development of business plan
  • Optimize and execute capital market strategy for investment

 

Aggressive Asset Management

The Fund will be operationally focused, relying on ICOZ LLCs in-house asset management capabilities, which include marketing and sales, development/redevelopment, finance, and capital markets. ICOZ LLC utilizes a comprehensive integrated investment process designed to meet project objectives, through the efficient and coordinated effort. Pre-investment, during the due diligence process, SG develops a business plan for the potential investment which includes market analysis, architectural and design specifications, construction plans, sales and marketing plans, and Pro-forma, financial analysis.

 

Post-investment, senior members of the Management Team are responsible for the execution of the business plan and closely monitor performance to ensure any necessary refinements are immediately implemented.

 

 

Team

ICOZ LLC considers investment in multifamily properties to be very attractive based upon the combination of rental demand, location, physical condition, and return targets. Projected capital expenditures giving rise to rent increases will result in higher net operating income and related investor rates of return on invested capital. Current returns will be aided by the higher rents while capital improvements should support a lower cap rate upon eventual sale or refinance. 

 

  • Capitalization Rate: 8%-10%
  • Debt: 75% Loan to Value
  • Investment Period - 3-7 Year Hold
  • Returns – 8%
  • Target Market – Southeastern Florida

 

Use of Funds

Updates


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Q&A


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Randy Ader
Randy Ader - Investora month ago
wait a minute ... your asking for my money, for 3 - 7 years, with only a 8% return? no stock, no shares ?
Joshua Griggs
Joshua Griggs - Issuer    
Hi Randy , thank you for your response. We are offering investors a two year( 24 month) 8% convertible debt note. At that time if you do not receive your principal back, the investor(s) can convert the note into equity. There is initial start up cost for this CF and 70% of the capital raise will be placed into properties and rehab cost. See chart above. Let me know if you have any additional questions, Thank you Management

a month ago

Documents

Offering Statement View Download

Other Disclosures

Read the Form C filed with the SEC for other important disclosures, like financial statements, Directors, Officers, shareholders with more than 20% of voting rights, and more.
Irregular Use of Proceeds
The Company may make Irregular Use of Proceeds. Such Irregular Use of Proceeds, which may be in material amounts in excess of $10,000, may include by way of example and not limitation: Vendor payments and salary made to management, business associates, relatives, related parties and/or affiliates thereof; expenses labeled "Administration Expenses" that are not strictly for administrative purposes; expenses labeled "Travel and Entertainment"; and expenses that are for the purposes of intercompany debt or back payments.

Without limiting the above, the Company may elect to vary from the proposed use of funds as circumstances or assessments of circumstances following the closing change.
Special Note Regarding Forward-Looking Statements
This offering contains forward-looking statements within the meaning of the federal securities laws. We caution investors that any forward-looking statements presented in this offering, or which management may make orally or in writing from time to time, are based on the Company’s beliefs and assumptions made by, and information currently available to, the Company. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. While forward-looking statements reflect the Company’s good faith belief when made, they are not guarantees of future performance. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this offering may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publically release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.
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