How I Underwrote a $93M Multifamily in South Carolina

I underwrote a $93M multifamily in Columbia, USA.

Fully entitled, shovel-ready project with site plans.

- 288-unit Class-A multifamily
- 65% debt + 30% equity
- Sponsor has put 5% into the deal
- Levered IRR 25.7%
- Equity multiple: 2.40x
- Net Profit: 45.6M

To fund deals like this, I ask 4 questions:

1) What stage of risk are we in?

- Fully entitled with site plan approval
- Sponsor has an incredible track record
- The architect and property manager are big names

2) What makes the location work?

- Sits across from the 181-acre BullStreet District
- There's a $300M USC medical school nearby
- The Hilton Hotel should be operating by 2027
- South Carolina is the fastest-growing state
- Columbia rents are up 24% since 2023

3) How is the downside protected?

- 65% leveraged is standard for this type of build
- The tax break is real and already signed
- There is a second tax break available (Opp Zone)
- Profit mostly depends on selling the building later

4) Can we control the exit?

- Exit is a straightforward sale after stabilisation
- As above, the price on the exit isn't guaranteed
- Comparable recent trades support the thesis

My verdict:

- Strong fit for Private Credit
- Strong fit for Family Offices
- Medium fit for Institutions

If you allocate to real assets, let's connect 👋