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CEP Multifamily Fund II

Join CEP in capturing the opportunity to buy multifamily real estate when the market dynamics are in the investors’ favor.
Dive into CEP's Core+ Investment Strategy
View Current Multifamily Portfolio
3.25X TARGETED EQUITY MULTIPLE
Fund II Lifecycle and Plan
One-Stop Shop for Investor's to Reference 
Data Highlights including Leverage Metrics, LP Terms and Fees
Jessica Disman Signature Black-1

Fund Parameters

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$50Mil +

Equity Fund Offering

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7 Years

Anticipated Life of Fund

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$250Mil

Total Capitalization‎‎‎‎‎‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎

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900 +

‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎Units‏‏‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎‎‏‏‎ ‎‏‏‎ ‎

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CEP Multifamily Fund II

Tax-advantaged cash-flow and appreciation balanced by conservative leverage

Target IRR

12%

Avg.Annual Return

6.5% (cash-on-cash)

Equity Multiple

2.5x

Target Hold

7 Years

Invest in Multifamily

Due to market dynamics, CEP is seeing the best buying opportunity since the Global Financial Crisis. Fund II is acquiring 3 to 5 100+ unit, multifamily assets in secondary and tertiary markets.  Our conservative underwriting standards are applied to each asset in the fund.

Instant Diversification

Get exposure to all assets owned by Fund II with one investment

Investor Returns Before CEP Profit

10% preferred return with priority return of capital. Investors are entitled to receive a 10% return on their invested capital before any profits are distributed to CEP.

Immediate Cash Flow

Fund II is currently making quarterly cash distributions to investors via ACH.

Offering Summary

We are buying a stabilized, 165-unit class A+ multifamily building developed in late 2022 at a 45% discount to construction cost.  This asset is cash-flowing and will enable distributions to investors in the first quarter after the acquisition.  Investment will be supported by CEP’s use of positive financial leverage in a region that has a strong underlying economic fundamentals along with scarce buildable land.

Fund Properties

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Nimbus Apartments

Everett, WA | 165 Units

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Villas at Portage Creek

Arlington, WA | 109 Units

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Get Fund Documents

Get access to due diligence materials and learn more about our:

Gym 2
Gym 3
Gym
Nimbus Amenities 1.2023 (17)
Nimbus Amenities 1.2023 (22)
Roof Top Deck Nimbus-Exteriors 3
Nimbus 805 Model - Jan. 2023 (11)
Nimbus 811 Model - Jan. 2023 (15)
Nimbus Cloud Room + Rooftop 1.2023 (5)
Nimbus Cloud Room + Rooftop 1.2023 (16)
Kitchen
Interior 1
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Interior Nimbus-Gallery-65
Building Aerial 1
Nimbus - Unit 722 - August 19 - 13
Nimbus - Unit 704 - August 19 - 9
Nimbus - Exterior 12.2022 (6)
Nimbus - Unit 704 - August 19 - 17
Gym 2
Gym 3
Gym 4
Gym
Nimbus Amenities 1.2023 (17)
Nimbus 805 Model - Jan. 2023 (11)
Nimbus 811 Model - Jan. 2023 (26)
Nimbus 811 Model - Jan. 2023 (22)
Nimbus 811 Model - Jan. 2023 (18)
Nimbus 811 Model - Jan. 2023 (15)
Nimbus Cloud Room + Rooftop 1.2023 (5)
Nimbus Amenities 1.2023 (22)
Interior 1
Interior Nimbus-Gallery-65
Nimbus - Unit 722 - August 19 - 2
Nimbus - Unit 722 - August 19 - 13
Nimbus - Unit 704 - August 19 - 17
Nimbus - Unit 704 - August 19 - 9
Kitchen
Nimbus-Gallery-86

Investment Opportunity

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Purchase Price

$34,000,000

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Equity Investment

$15,873,000

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Favorable Financing Terms

5.88% 10 Year fixed

65% LTV
5 yr interest only

Suburban
Workforce Housing

  • * High demand product
  • * Undersupplied in the market
  • * Affordable for households making 70-120% of area medium income

Core-Plus Strategy

  • * 7+ Year Hold
  • * Low Risk/High Yield Investment
  • * Long-term debt w/conservative leverage
  • * Generate balanced returns over the hold period
  • * Deliver robust cash flow from operation to investors (paid quarterly)
  • * Drive strong appreciation over time to capture at sale

Capital
Expenditures Plan

  • * Properly capitalized to reposition the asset to compete with top performers in the submarket.
  • * Complete unit interior renovation on all remaining two- and three-bedroom units as they turn to capture proven rent premium

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Arlington, WA

Arlington is a small, vibrant city in Snohomish County, Washington that sits just east of I-5 between Everett (the largest city in the county) 13 miles to the south and Burlington/Mt. Vernon roughly twenty miles to the north. Its residents enjoy life at the doorstep of both Puget Sound and the Cascade Mountains, providing abundant outdoor activities and views that, alongside the strong employment base, bolster quality of life in the region. This attractiveness is demonstrated at both the city and county level, with each seeing their populations grow 1.5% and 1.3%, respectively, since 2010 – well above the U.S. average of 0.6%.

Download CEP Multifamily Fund II Investor Deck

Due to market dynamics, CEP is seeing the best buying opportunity since the Global Financial Crisis. Fund II is acquiring 3 to 5 100+ unit, multifamily assets in secondary and tertiary markets.  Our conservative underwriting standards are applied to each asset in the fund.

The Opportunity

Nimbus is a risk mitigated, attractive investment opportunity with real potential to exceed return targets. The property is a newly constructed 165-unit, 8-story mid-rise apartment building being purchased at an exceptional discount to replacement cost. The developer/seller used adjustable rate financing and was facing a cash-in refinance to hold the property. They are selling to CEP at a substantial discount (45%+) to the actual cost to construct the building.

The property is stabilized, ~95% occupied, and capturing rents inline with the top performing properties in the submarket. The property has in place a 12-year multifamily tax exemption (MFTE) abating 95% of taxes running through 2035. The MFTE reduces the tax burden and will improve cashflow throughout the hold period in exchange for providing 20% of the units as affordable to those making between 60% and 80% of area median income (AMI).

Watch the CEP Multifamily Fund II Webinar

 

Capital Stack Placeholder

Total capital

$49M

Net

Senior Debt

$23.9MM

Net

Equity

$25.1MM

Net
Download Deck
Registration Required to Access
Dive into CEP's Core+ Investment Strategy
View Current Multifamily Portfolio
Fund II Lifecycle and Plan

Download The Nimbus Apartments Deck

Registration Required to Access

Watch the CEP Multifamily Fund II Webinar

 

Fact Sheet

Villas at Portage Creek

Building
Address 7900-7980 200th St NE
Year Built 1994
# of Units 109
Average Unit SF 1071
Residential Net Rentable SF 111,138
Parking 109 carports, 28 garages, 74 surface spaces
Site Area Approximately 9.84 acres
Construction Specifications
Structure 14 buildings + 1 Office & Lounge
Foundation Slab on Grade
Roof Pitched, Composition Shingle
Siding Mix of LP and Fiber Cement
Heat & A/C Electric
Plumbing Mix of Copper and PEX
Unit Type No. Units Unit SF Pro Forma Rent Pro Forma Rent/SF
2 Bedroom Classic 41 968 $2,056 $2.12
2 Bedroom Renovated 51 974 $2,268 $2.33
3 Bedroom Classic 9 1,253 $2,146 $1.71
3 Bedroom Renovated 8 1,312 $2,462 $1.88
Total/Average 109 1,020 $2,191 $2.15
Josh Jansen

Josh Jansen

CEO | President | Managing Partner

Watch the CEP Multifamily Fund II Webinar

 

Jessica-Disman-Headshot-BW

Jessica Disman

Director – Capital Markets & Investor Relations

Watch the CEP Multifamily Fund II Webinar

 

Mike Harmon

Mike Harmon

CIO & Managing Partner

Watch the CEP Multifamily Fund II Webinar

 

Ready to learn more?

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