“Year’s end is neither an end nor a beginning but a going on, with all the wisdom that experience can instill in us.”
- Hal Borland
Happy New Year! We hope everyone enjoyed the holidays! We are thrilled to end the year strong and have the opportunity to spend time during the holiday season with our families. This much needed break allowed us to reflect on a very successful year filled with new acquisitions, profitable exits, expansions into new markets, and diversifying our asset classes.
After a slow first half of the year, business picked up in Q3 as we exited the Palms at Watt in Sacramento, CA after executing a full cycle value-add strategy. We also acquired two multifamily properties, Leawood Apartments in South Lake Tahoe, CA and 1818 Apartments in Sacramento, CA. Then we closed out the year in Q4 acquiring two additional properties, Harrison Apartments in Redwood City, CA and Wall Street Street Executive Storage in Spokane, WA, further expanding our markets and investing in our very first self-storage deal! Flite has now acquired 12 assets total and exited 5 so far in less than 36 months.
Why invest outside of our core markets and in different asset classes? Why not just concentrate on locations and assets that we know? Whether we invest in multifamily locally or out of state or venture into self-storage, our investment thesis and goals remains the same…
To find heavy value add / value management opportunities in prime markets that allows us to force appreciation and yield the highest returns for our investors in the shortest amount of time.
Every business looks to expand and grow, which is why we are seeking opportunities outside of our core markets to explore options for our investors. We plan to take our experiences from our past projects and continue to leverage our skills and backgrounds in architecture, construction management, tax and risk management to provide diverse investment opportunities for our investors and build their wealth, protect capital, and capitalize on the tax advantages of real estate.
The multifamily market remained strong throughout these two years of Covid and we anticipate it to continue this coming year. Strong in-migration combined with housing shortage will benefit the markets we invest in. The self-storage industry outperformed all other commercial sectors in 2021 as the pandemic only fueled the industry. We will keep a very close eye on interest rates and inflation figures but we anticipate that the multifamily and self-storage asset classes are positioned for a strong and healthy 2022.
Thanks to all of our investors who helped us become so successful and we welcome our new investors who joined our team this past year. We are grateful for your trust and support and we look forward to a prosperous New Year!
See below for our 2021 Year End Review!
The Wall Street Executive Storage
(Acquired December 2021)
Spokane, WA - 414 self-storage units & 7 office spaces
Flite is pleased to present the Wall Street Executive Storage, a fully renovated, 414 unit, brand new self-storage facility with 7 office units and bulk storage located in the heart of downtown Spokane, Washington. This is an off-market deal presented to us through our broker network and the team was able to secure the deal for $6,000,000. Construction of the Wall Street Executive Storage completed in December 2021 and was delivered fully built out and 100% vacant.
Investor Details
$6,000,000 acquisition
$2,500,000 capital raise (506b offering)
$50,000 minimum
10% preferred return
70/30 equity split
3 year projected hold
Projected Returns
21.5% projected IRR (Y3)
8.0% cash on cash return (Y3)
1.67 equity multiple (Y3)
18.8% projected IRR (Y5)
10.5% cash on cash return (Y5)
1.93 equity multiple (Y5)
See more details at our website below.
https://www.fliteinvest.com/properties-wall-street
The Harrison Apartments
(Acquired November 2021)
Redwood City, CA - 15 units
Flite is excited to present Harrison Apartments, a wonderful and almost half vacant 15-unit apartment complex located in a highly desirable area of Redwood City, California. Working closely with our Marcus and Millichap broker team, we were able to quickly secure the deal below market pricing and off-market for $6,000,000. The property is located in an excellent residential neighborhood with many amenities nearby, including Whole Foods a block away, Safeway, retail shops and banks within walking distance as well as the Redwood City train station.
Investor Details
$6,000.000 acquisition
$2,150,000 capital raise (partnered with one of our previous investors who funded the entire capital raise)
8% preferred return
70/30 equity split
18 months or less projected hold
Projected Returns
34.8% projected IRR (12 month hold)
1.35 equity multiple (12 month hold)
21.4% projected IRR (36 month hold)
1.73 equity multiple (36 month hold)
See more details at our website below.
https://www.fliteinvest.com/properties-harrison
The 1818 Apartments
(Acquired September 2021)
Sacramento, CA - 12 units
Flite is pleased to present 1818 Apartments, a 100% vacant 12-unit apartment community in the heart of the vibrant Downtown-Midtown, Sacramento neighborhood. Working closely with our Colliers International broker team, we were able to secure the deal, off-market for $2,630,000.
Investor Details
$2,630,000 purchase price
$950,000 capital raise (506b offering)
$50,000 minimum
8% preferred return
70/30 equity split
18 months or less projected hold
Projected Returns
42.7% projected IRR (12 months)
1.43 equity multiple (12 months)
26.1% projected IRR (36 months)
1.80 equity multiple (36 months)
See more details at our website below.
https://www.fliteinvest.com/properties-1818-apartments
The Leawood Apartments
(Acquired September 2021)
South Lake Tahoe, CA - 13 units
Flite pleased to present Leawood Apartments, a well-kept 13-unit apartment community nestled in the resort town of South Lake Tahoe, California. Working closely with our Marcus & Millichap broker, we were able to secure the deal for $2,030,000.
Investor Details
$2,030,000 purchase price
$800,000 capital raise (506b offering)
$50,000 minimum
8% preferred return
70/30 equity split
3 year projected hold
Projected Returns
21.9% projected IRR (Y3)
1.81 equity multiple (Y3)
23.1% projected IRR (Y5)
2.22 equity multiple (Y5)
See more details at our website below.
https://www.fliteinvest.com/properties-leawood
The Palms at Watt
(Exited August 2021)
Sacramento, CA - 11 units
Flite is pleased to announce that escrow has closed on the sale of 3911 Watt Ave, Sacramento, CA and we have received proceeds from Title. This is another successful project where we took the property from it's existing condition, rehabbed 9 of the 11 units, rehabbed the exterior, and sold much earlier than anticipated.
Exit Details
$1,250,000 (acquired November 2019)
$1,800,000 (exited August 2021)
18.05% IRR (20 months hold period)
See more details at our website below.
https://www.fliteinvest.com/properties-watt
Please feel free to reach out to us if you'd like to touch base, talk investing or if you'd like more information about these deals and want to be updated on future investment opportunities!
Happy Prosperous New Year!