lucern multifamily value fund i, l.p
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LUCERN MULTIFAMILY VALUE FUND I, L.P.CHARLOTTE MSA
Strictly Confidential / For Informational Purposes Only
Lucern Multifamily Value Fund I, L.P. | Confidential 2
Disclaimer & Confidentiality
All information included in this document is considered to be highly confidential and may not be disclosed to any person without the prior consent of Lucern Capital Partners, LLC and Lucern Partners, LLC, Lucern Real Estate, LLC and any other affiliates, successors, or assigns thereof. This document is for general information only. Further, this document does not constitute an offering but is merely for informational purposes. A firm offering shall only be triggered by circulating a full offering package, which should be reviewed in its entirety before investing.
No information, forward looking statements, or estimations presented herein represent any final determination on investment performance. While the information presented in this document has been researched and is thought to be reasonable and accurate, any real estate investment is speculative in nature. Lucern Capital Partners, LLC, Lucern Partners, LLC, Lucern Real Estate, LLC and/or its agents cannot and do not guarantee any rate of return or investment timeline based on the information presented herein.
By reading and reviewing the information contained in this document, the user acknowledges and agrees that Lucern Capital Partners, LLC, Lucern Partners, LLC, Lucern Real Estate LLC and/or its agents do not assume and hereby disclaim any liability to any party for any loss or damage caused by the use of the information contained herein, or errors or omissions in the information contained in this document, to make any investment decision, whether such errors or omissions result from negligence, accident or any other cause.
This information is intended for accredited investors only. All investors are required to conduct their own research, analysis, and due diligence. Any areas concerning taxes or specific legal or technical questions should be referred to lawyers, accountants, consultants, brokers, or other professionals licensed, qualified or authorized to render such advice.
In no event shall Lucern Capital Partners, LLC, Lucern Partners, LLC, Lucern Real Estate LLC and/or its agents be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this document or any information contained herein. Lucern Capital Partners, LLC, Lucern Partners, LLC, Lucern Real Estate LLC and/or its agents specifically disclaim any guarantees, including, but not limited to, stated or implied potential profits, rates of return, or investment timelines discussed or referred to herein.
Data referenced herein sourced from various CBRE, Berkadia, YardiMatrix, Central Philadelphia Development Corporation, National Geographic, Marcus & Millichap and others. All trademarks, copyrights and rights reserved for the aforementioned.
Printed in the USA. All rights reserved.
® 2020 Lucern Capital Partners LLC, Lucern Partners, LLC, Lucern Real Estate, LLC – successors/affiliates/assigns
Lucern Multifamily Value Fund I, L.P. | Confidential 3
Why Invest In Charlotte?
Charlotte, North Carolina, is one of the nation’s top performing and quickest growing multifamily real estate investment markets.
For the past ten years, Charlotte has experienced considerable interest from multifamily investors and has remained an attractive geography for real investors today.
The Charlotte MSA is situated firmly within the Sunbelt and has benefitted from the substantial tailwinds of inbound migration spurred by those looking to leave crowded cities amid the pandemic. The geography also boasts a quality of life that is particularly attractive among millennials, the largest generation in the U.S. labor force.
With rent growth projected to quickly reach pre-pandemic levels and strong market fundamentals, savvy real estate investors are gravitating toward Charlotte.
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DemographicsSteadily increasing demographic fundamentals drive Charlotte’s continued multifamily real estate investment success. The MSA’s generous population growth, highly qualified and engaged workforce, and income levels that surpass national benchmarks produce high rent rates for multifamily investors.
With strong demographic trends, Charlotte, NC is considered one of the strongest performing southeastern cities for investment. The MSA maintained favorable wage and employment growth during pandemic recovery, foreshadowing continued opportunity for real estate investments in the area.
Sources: (1) World Population Review (2) U.S. Bureau of Labor StatisticsAll data represents projections based on the findings of the 2020 census
> 2.4 million people reside in the Charlotte MSA
> As the 15th largest city in the U.S., Charlotte is the largest city in North Carolina and 2nd
largest city in the Southeast
> 3rd fastest-growing major city in the nation
Population 1
> Charlotte boasts a well-educated population
> 28.9% of residents have a Bachelor’s Degree and 20%have attended some college
> Charlotte’s highly educated population positions potential tenants to earn more and, in turn, spend more on rent
Education 1
> Avg. Annual Income $41,923
> Median Annual Income $47,607
> YoY Income Growth +5.07%
Income 1
> Civilian Labor Force 1,376,300
> Employment Rate 65.0%
> Unemployment Rate 4.7%
Employment 2
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Inbound MigrationPeople of all ages have been steadily moving to Charlotte from other U.S. cities over the last decade, seeking job opportunities and increased quality of life offered by the MSA.
Ranked #6by RentCafé as one of
the best cities for millennial renters to move.
In the Top 10markets experiencing
migration from New York due to the pandemic.
Baby Chasersranked the MSA as the
#1 city to move so that they can be near their grandchildren.
63% of migration to the Charlotte MSA was inbound in 2020, whereas
Sunbelt states averaged 19.97%.
2.1%
2.2%
2.5%
2.7%
3.0%
3.3%
4.9%
5.8%
15.4%
Detroit
Atlanta
Philadelphia
Miami
Los Angeles
Boston
Columbia, SC
Washington, DC
New York
Charlotte’s Top Sources of Inbound MigrationBased on LinkedIn data gathered between March 2020 and 2021
Source: LinkedIn data compiled by the Charlotte Regional Business AllianceSource: Rentcafe.com
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Job Market HealthCharlotte, NC’s business friendly tax environment and labor market growth outstrip national averages, and other key job market health indicators are also more favorable when compared to the broader U.S. The MSA’s thriving job market is fueled by an influx of large corporations who are establishing headquarters in the area.
Many large corporations like USAA, Credit Karma, and Truist have announced new Charlotte headquarters in recent years, improving both recent and future job growth.
Charlotte, NC is more than a banking city. Though the city is known as a hub for U.S. financial corporations, healthcare is also a top industry with Atrium Health and Novant Health being two of the areas largest employers.
According to data provided by the Bureau of Labor & Statistics, the Charlotte metro area gained approximately 8,700 jobs in June 2021.
Charlotte is predicted to gain 136,822 jobs between 2018 and 2028.
Charlotte’s job growth is projected to increase at a rate of 1.3%, nearly 3 times faster than the nation.
With an average annual salary of more than double the county’s, Credit Karma’s move to Charlotte is just one example of how tech is increasing the buying power of the MSA’s population.
Source: Charlotte Regional Business Alliance
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Multifamily TrendsCharlotte’s multifamily real estate investment landscape has a long history of growth and stability. Rent levels for the city and surrounding areas are typically higher than statewide and national prices.
> As of October 2020, millennials accounted for nearly 43% of rental applicants. This shift in demographic informs the subsequent shift in multifamily asset positioning with property amenities, services, and in-unit layouts designed to cater to the millennial cohort’s wants.
> 81% of Charlotte rents are priced between $1,000 and $1,999 per month with rent growth projected to accelerate over future quarters.
> In Q1 2021, average multifamily rents reached their highest peak on record priced at $1,206 per unit, demonstrating the Charlotte MSA’s stability during the pandemic recovery period.
> Charlotte’s multifamily investment sales volume is projected to increase by 3-4% over the next several years. $1,791
$1,537
$1,148
$930
$821
$1,430
$1,172
$875
$731
$697
$1,779
$1,388
$1,028
$897
$875
$1,961
$1,530
$1,133
$989
$965
4-Bedroom
3-Bedroom
2-Bedroom
1-Bedroom
Studio
Average Rent by Unit SizeCharlotte Charlotte-Concord-Gastonia Metro North Carolina United States
Source: BestPlaces.net
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News Outlets Make a Case for Charlotte’s Flourishing Multifamily Real Estate Investment Market
RENTGROWTH
INFRASTRUCTUREIMPROVEMENTS
TECHBOOM
MILLENNIALRENTERS
14TH SEAT IN CONGRESS FOR NC
> https://www.rentcafe.com/average-rent-market-trends/us/nc/charlotte/> https://www.forbes.com/sites/forbesrealestatecouncil/2020/12/23/sun-belt-multifamily-market-showing-resiliency-now-and-in-the-year-
ahead/?sh=6d1725d4f5a9
> https://www.bizjournals.com/triangle/news/2021/07/28/amazon-centene-talk-transportation-in-nc.html> https://spectrumlocalnews.com/nc/charlotte/traffic/2021/06/11/north-carolina-to-receive-american-rescue-plan-
funding-allocation-to-help-with-transit-projects
> https://www.bizjournals.com/charlotte/news/2021/06/07/cbj-morning-buzz-tech-worker-inmigration-linkedin.html> https://charlotte.axios.com/253303/words-out-how-charlotte-is-becoming-a-hot-tech-town/> https://www.wcnc.com/article/money/charlotte-north-carolina-tech-hub-hot-spot/275-6f129f84-840c-4d60-803e-bcd2a5c3d98d
> https://www.charlotteobserver.com/news/state/north-carolina/article246311080.html
> https://www.carolinajournal.com/news-article/its-official-14th-congressional-seat-coming-to-n-c-whats-next/
HQ: 218 BROAD STREET, RED BANK, NEW JERSEY 07701
PLEASE CONTACT:
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FOR INVESTMENT INQUIRIES & INFORMATION
MARK CALLAZZO Managing Partner
732-515-5371
FRANK FORTE Managing Partner
732-515-3586
DAVID HANSEL Managing Partner
732-515-4734