CypressCommons, LLC Investor Portal

CypressCommons, LLC

An Arizona Multi-Family Real Estate Investment

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CypressCommons, LLC
506(c) Offering Platform

INTRODUCTION TO OUR COMPANY

CypressCommons, LLC (the “Company”) was formed as an Arizona limited liability company for the purpose of acquiring and managing a multi-family and apartment class real estate asset named “Cypress Commons” located at 447 West Rio Salado Parkway, Mesa, Arizona 85201. The Company is managed by CypressCommonsGP, LLC (the “Manager”), an Arizona company formed in 2020 that specializes in real estate asset acquisition, development, and management. CypressCommonsGP, LLC is managed by three experienced real estate, business and finance professionals; Dr. Jackson Booth, Ho Jang, Matthew Camire and Kristen Berube.

Cypress Commons is a 48-unit apartment community located off of Rio Salado Parkway in Northeast Mesa. The Property is centrally located between Downtown Mesa and the Mesa Riverview, a major shopping destination with such tenants as Walmart, Home Depot, LA Fitness, Bass Pro Shop, Cinemark Mesa 16, Marshalls, Bed, Bath & Beyond, Petco, Chick-fil-a and Cracker Barrell Old Country Store and Restaurant. Just beyond the Mesa Riverview shopping center (one mile west of Cypress Commons) is Riverview Park, an expansive recreational area which includes Sloan Park - the 15,000 seat major league baseball stadium and spring training home of the Chicago Cubs. Developed in 1986, Cypress Commons is comprised of 48 two-bedroom, two-bath floor-plans averaging 817-square-feet.

Over the years, the executives associated with the Manager has seen extreme market fluctuations; because of this, CypressCommonsGP, LLC is always researching market trends to develop strategies allowing it to mitigate this volatility and reduce negative effects on investors. This experience has also better positioned the Company to take advantage of market opportunities presented in times of uncertainty. This proactive approach sets CypressCommons, LLC apart from the competition.

The Phoenix MSA (“Mesa-Scottsdale Metropolitan Statistical Area”) is the #3 fastest growing economy, #2 city for job growth, and #1 fastest growing city in the U.S.

CypressCommons, LLC
506(c) Offering Platform

summary of operations

Geographic Focus

In the opinion of the Manager, the Arizona (the “Target Market”) multi-family real estate market of Phoenix provides compelling opportunities for the purchase, management, and disposition of the distressed multi-family real estate asset Cypress Commons. The Manager’s strategic planning and operation background provides it the capability to accurately evaluate certain acquisition opportunities with the intent to rehabilitate the asset, engage in a reposition and lease-up, and then ultimately sell the improved asset for a projected net gain and assuming certain assumptions are met regarding renovation costs, revenue, and sales price of the asset.

The collective experience of the Management team lends itself to evaluating these opportunities and executing on a short and long term investment plan that involves 65-75% LTV leverage and assets purchased in trending urban markets with strong core fundamentals.

Asset Sourcing

The Manager engages with entities that control multiple properties, such as lenders, servicers, and operators, and seeks to locate assets in their portfolios that would be potential investment opportunities. Concurrently, the Manager employs a value-add methodology that focuses on specific assets that it believes are distressed or are otherwise attractive investment opportunities. The Senior Principals of the Manager have a network of relationships with brokers, lenders and property management firms with commercial real estate industry experience that provides the Company with improved access to investment opportunities such as Cypress Commons.

The Property

Cypress Commons is a 48-unit apartment community located off of Rio Salado Parkway in Northeast Mesa. The property is centrally located between Downtown Mesa and the Mesa Riverview, a major shopping destination with such tenants as Walmart, Home Depot, LA Fitness, Bass Pro Shop, Cinemark Mesa 16, Marshalls, Bed, Bath & Beyond, Petco, Chick-fil-a and Cracker Barrell Old Country Store and Restaurant. Just beyond the Mesa Riverview shopping center (one mile west of Cypress Commons) is Riverview Park, an expansive recreational area which includes Sloan Park - the 15,000 seat major league baseball stadium and spring training home of the Chicago Cubs. Developed in 1986, Cypress Commons is comprised of 48 two-bedroom, two-bath floor-plans averaging 817-square-feet. All units are condo-mapped and include in-suite laundry, private patios/ balconies and fireplaces. Future ownership will have the opportunity to execute a programmatic interior renovation program across all of the units with an expected premium of $200 per month.

Asset Re-Positioning and Marketing

Once any renovation required is complete, the Company will proceed with re-positioning the asset and marketing the asset to potential rental consumers. Much of the re-positioning process occurs with the modernization of Cypress Commons and the inclusion of aesthetic features that will appeal to the core target rental audience in the selected markets. The Manager has extensive experience in rehabilitating properties such that they have significant rental appeal to a mid-level rental consumer. This increase in appeal allows for increased rental rates, higher expected net operating income, and equity accretion.

Oversight of the re-branding and marketing of Cypress Commons will be the primary responsibility of Jack Booth, CEO. The marketing process involves networking with local real estate specialists, local advertising and social media promotion, and on-site rental management personnel tasked with previewing units to potential customers

Disposition of Assets

The Manager anticipates that it will take five to seven years to complete the acquisition, reposition and/or rehabilitation, and asset disposition. This opportunity may be sourced from distressed sellers or “special circumstance” type acquisitions wherein a significant amount of equity and value is present from the time of acquisition and additional equity and profit is realized through the reposition, re-branding, and rehabilitation process.

As of January 2020, annual rent growth in Phoenix hit 7.7%, by far the best showing out of the 50 largest markets and well ahead of the national average of 2.9%.

www.realpage.com

CypressCommons, LLC
506(c) Offering Platform

Company Management Team

The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.

Jack Booth

Dr. Jack Booth, DDS

Jack was raised by a taxi driver in Houston, TX. He roomed with Matt Camire during his West Point days and graduated into the Finance Corps in 1998. Jack and Ho Jang were stationed in Germany together and became close friends while serving and managing millions of dollars for the government. Overseas tours included Bosnia, Egypt and Kuwait.

Jack left the military and went to dental school at the University of Washington. He graduated in 2007 and began building dental clinics in Austin, TX. Success demanded a great operations person, so he brought Ho on board, grew the company to multiple clinics and exited for $10mm.

Sensing the pending transition, Jack began a voracious consumption of all investment options and tax strategies. Settling on commercial real estate, multi-family specifically, he partnered in real estate assets totaling over 3100 units. Seeing the way MF real estate created time freedom to be with his three small kids, Jack’s passion was born. 1802 Capital brings together lifelong friends with stellar complimentary skill sets committed to an integrity-based team approach in helping others achieve similar results.

Ho Jang

Ho Jang

Ho Jang is the COO of 1802 Capital, a commercial real estate investment firm. Prior to joining 1802 Capital, Ho spent 2 decades in operations management in increasing levels of responsibility. He started his management career at Suburban Propane, the third largest propane energy company in the US. He was quickly promoted to be the youngest Regional Distribution Manager in company history and was responsible for a three state territory with over $120MM in annual sales.

Ho has most recently been the COO of River Rock Dental, a nine office dental group based in the Austin, Texas area and owned by 1802 Capital CEO, Jackson Booth. The offices grew rapidly under his leadership. After increasing profitability and EBIDTA by several multiples, the offices were successfully positioned for a sale so that both Jackson and Ho could focus fully on 1802 Capital.

Ho’s path towards real estate started with several investments in multi-family real estate. He has partnered and invested in 5 apartment syndications with over 1500 units under control. With a diverse career in operations, he understands the operational excellence needed to add value and maximize operating income streams while efficiently driving expense management.

In addition to his career in the civilian sector, Ho is a graduate of the United States Military Academy and served 6 years in the Army. He was deployed to Kosovo and is a veteran of Operation Iraqi Freedom.

Matt Camire

Matt Camire

Fund Real Estate Analyst And Asset Marketing Coordinator

Matt is The Director of Investor Relations at 1802 Capital. He was born and raised in Portland, Maine. He graduated in the top 10% of his class and was also a three sport athlete. After high school, Matt attended the United States Military Academy at West Point. Upon graduation, he was commissioned as a second lieutenant in the army where he served for five years as a finance officer. While deployed to South Korea, Matt’s position required him to manage the central cash banking operation on the peninsula where he extended his tour for two years.

Upon leaving the army, Matt was hired by Stryker Corporation to run the assembly portion of their manufacturing facility for pre-hospital transport equipment. From there, he moved out into capital medical sales for Stryker and made that his career for 16yrs, selling over $40M in equipment and consistently placing in the top 10% of the sales force.

During his time in his sales role, Matt developed a passion for rental real estate and purchased nine single and multi-family properties, which provided him solid returns and tax advantages that he couldn’t achieve via other forms of investment. To this day, he continues to manage some of those properties, but has since realized that multi-family syndications are a great way of scaling his real estate investments, while minimizing the time and effort required.

As a father of four active children, Matt wanted to find a way to grow his real estate portfolio without creating more demands on his time. After some research, it became clear that multi-family syndications are a fantastic option to achieve this goal. As a limited partner, he is now invested in five syndications involving over 1,300 units in markets across the country.

Matt is excited to share his knowledge and help others find financial and lifestyle freedom through investments in multi-family real estate syndications.

Kristen Berube

Kristen Berube

Kristen grew up in a small town in Montana where she excelled in academia and track. She attended the Montana State University School of Business where she focused on Business Management and Finance. Upon graduation she furthered her education by attending dental school at NAIT, in Alberta Canada. Returning to the state of Montana she was married and began a dental prosthetics practice with her husband. The business grew quickly into multiple clinics. As clinics were developed and sold Kristen began to develop an appetite for reinvesting/remodeling single family homes.

Kristen obtained her realtors license and completed numerous real estate investment courses to ensure success in the rapidly growing real estate arena. Eventually the single-family home investments progressed to multi-family home and commercial investments, in which, she is currently involved. In addition, Kristen still successfully manages dental practices, a marketing company, and a retail store.

On top of her many academic and business accomplishments, Kristen is a published author. She has multiple books in circulation, as well as several future works in various stages of the editing process. Her passion for art and culture also shines through in her daily life as she has been featured in numerous galleries, newspapers and nationally circulated periodicals, for both her literature and art. Her devotion to her family and four beautiful children, whom are her most cherished accolades knows no bounds. The transition in multi-family has allowed her to spend more time with those she values most and live life to the fullest.

Permits, starts and completions were all at or near this cycle’s highest levels in 2019. With the COVID-19 pandemic to start 2020, permits, starts and deliveries likely will be delayed. However, CBRE Research predicts that multi-family completions will total 280,000 units, on par with 2019’s estimated 281,000 units.

- www.cbre.us

CypressCommons, LLC
506(c) Offering Platform

terms of the offering

$4,000,000

Minimum Offering: $2,700,000

Minimum Investment: $25,000 (25 Units)

The Company is offering a minimum of 2,700 and a maximum of 4,000 Class A Membership Units at a price of $1,000 per Unit. Upon completion of the Offering between 2,700 and 4,000 Class A Membership Units will be issued.

Once the Manager shall determine that distributions are appropriate, quarterly distributions will commence with a 5% preferred (or priority) return. This preferred return will not be considered return of capital. Once the Class A Members are returned 100% of their capital and the 5% preferred return, the Manager shall review the Company’s accounts periodically to determine whether further distributions are appropriate. All distributions pursuant to the Operating Agreement shall be made on the following summarized schedule and terms:

  • (i) a distribution to the Class A Members on a pari passu basis, equaling seventy percent (70%) of any net distributable cash from operations, with the Class B Member participating in thirty percent (30%) of any such distributable net cash.

Distributions. Distributions may not be demanded by the Members. Instead, the Manager shall determine the amount of cash, if any, available for distribution at such times as the Manager deems advisable. The distribution shall be based upon all relevant factors, including, but not limited to, the operating expenses and debt service of the Company, sums expended by the Company for capital expenditures and a reasonable reserve for working capital. Section 29-3404 of the Limited Liability Company Act shall not override this provision.

Amount of Distributions. Subject to Arizona Revised Statute 29-706, as amended, no distribution shall be made if, after the distribution is made, the assets of the Company are less than all liabilities of the Company, except liabilities to Members on account of the contributions.

Allocation of Distributions. Distributions shall be made in proportion to the membership interest in the Company, as of the date of distribution, unless otherwise agreed by the unanimous vote of the Members. The Members, by such vote, may make distributions according to membership interests, may make payments according to services rendered by each Member, may make payments according to the economic realities of the transaction or according to such other plan of distribution voted upon by the Members.

Quarterly Distributions. After the contingency reserve fund referred to in Section 6.11 of the Operating Agreement is established, on a quarterly basis, the Manager may distribute to each Member an amount equal to that Member’s allocable share of net cash flow calculated on a quarterly basis, unless otherwise agreed to by the unanimous vote of the Members.

CONTACT US

Please complete the contact form and we will get back to you about any questions you have about our offering.

CypressCommons, LLC - 1846 E. Innovation Park Drive, Suite 100 - Oro Valley, AZ 85755 — matt@1802capital.com — (602) 641-8300

CypressCommons, LLC
506(c) Offering Platform

so much more than what you see

prospect dashboard

The CypressCommons, LLC 506(c) Investor Portal provides the opportunity to learn about our investment opportunity. Once registered, you will have:

  • Access to the Private Placement Memorandum, which outlines our company and gives greater detail about our offering;
  • Access to our SEC filing;
  • View real time offering metrics of how far along we are in the offering process;
  • View a timeline of your progress in the subscription process;
  • View company contact information; directly contact the administrator;
  • Easily upgrade your account with the click of a button.

Once your account is upgraded you will have additional access including:

  • Complete the subscription documents;
  • Upload subscription and accreditation documents as applicable;
  • Specific information for investing and instructions on transfer of investment funds;
  • Company documents including Reports, Financials, and Supporting Documents;
  • Asset Portfolio as applicable;
  • News articles written by the company;
  • Documents associated with your account.

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