Sunstone Multifamily Fund VI

Category:

Description

Founded in 2012, Sunstone is an owner, operator, and fund manager of multifamily real estate assets.

Headquartered in Southern California, Sunstone specializes in value-add and opportunistic Workforce Housing in secondary markets located in US Sunbelt states including Arizona, California, Florida, Georgia, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Utah.

Using its fully integrated platform, Sunstone selectively acquires existing apartment communities, creating value through renovation and reconstruction increasing net operating income, operating efficiency and rent growth. Sunstone also develops moderately priced apartments on a limited basis.

 

Sunstone’s four fully cycled funds have generated substantial returns to investors including an average gross IRR in excess of 27%.

 

Offering at a Glance:

Strategy:                       Value-add / Opportunistic Workforce Multifamily

Target size:                   $300 Million

Geographic focus:         US Sunbelt states

Targeted returns:           15% – 18% Net IRR; 1.6x – 1.8x equity multiple

Term:                           ~7 years

 

 

Summary Sheet                                                     pdf download

Investor Deck                                                         link to info@sunstonept.com

Due Diligence Questionnaire                                link to info@sunstonept.com

Fund Documents                                                   link to info@sunstonept.com

 

 

Sunstone Advantage

  • Sunstone’s seasoned management team utilize their extensive real estate experience to drive value through their interactive and collaborative approach.

 

  • With its fully integrated platform, Sunstone is able to take advantage of strategic opportunities in a cost-effective manner that many of its competitors cannot.

 

  • Our functional, quality upgrades preserve much needed housing for working class households.

 

  • Sunstone goes beyond expectations to deliver on our commitments to investors, partners, residents, and communities.

 

Why Multifamily?

Over the last decade, the multifamily sector has maintained the highest occupancy levels, the least amount of volatility and the highest risk-adjusted returns of all other real estate asset classes. Multifamily also provides a more effective hedge against inflation than other sectors as short-term tenant leases allow for rent to be increased as the price of goods and services rise.

The sharp rise in the cost of homeownership and current preferences of young adults waiting longer to start families has increased the demand for rental housing overall. While there is minimal new supply of Workforce Housing coming onto the market, unlike luxury apartments, Sunstone’s tenant base represents the largest group of renters in the US.

 

Firm Leadership

In 2012, after 25 years in the real estate development business, John Maddux and John Hansen decided to launch a new company. Having weathered several economic cycles, the long-time business associates were looking for an asset class that provided positive returns with minimal downside risk.

They chose multifamily, specifically workforce multifamily, as the best alternative based on its performance and positive demand/supply dynamics. The asset class also fulfills their mission to create a product that delivers much needed housing for working class individuals and families and improves the communities in which they live and work.

 

About Sunstone

 

John Charles Maddux President and Chief Executive Officer

Mr. Maddux has served as President and CEO of Sunstone Properties Trust since its inception. He was previously President and COO of MMPI, specializing in commercial real estate acquisition, development and management. Mr. Maddux previously practiced real estate law with O’Melveny & Myers from 1986 to 1996 and served as founder and shareholder of Nevers, Palazzo, Maddux & Packard from 1998 to 2005. Mr. Maddux earned his bachelor’s degree in business management and finance from Brigham Young University’s Marriott School of Management and his J.D. from Brigham Young University’s J. Reuben Clark Law School.

 

John Byron Hansen – Chief Investment Officer

Mr. Hansen serves as the Chief Investment Officer of Sunstone Properties Trust. Mr. Hansen founded Glenwood Properties Inc. in 1987 and served as President and CEO through 2012. During his tenure, Glenwood developed over 60 projects including multifamily, retail and office. He also was a founding member of Glenwood Interests LLC. Prior to Glenwood, Mr. Hansen practiced law for three years, specializing in securities and real estate. He was a founding shareholder and director of Tomato Bank, N.A. Mr. Hansen received a bachelor’s degree in literature from Brigham Young University and a J.D. from the University of Utah College of Law.