Tuscany Place

440 S 2nd W • Rexburg, ID 83 440

Total Offering Price $11,793,000

Anticipated Investor Equity $4,031,000

  • 1st Year Targeted Cash-on-Cash Return 7%
  • Anticipated Loan Amount $7,762,000
  • Anticipated Loan-to-Value 65.82%
  • Minimum Investment $50,000

Tuscany Place is a 48-unit student housing complex in Rexburg, ID, located two blocks from the growing BYU-Idaho campus. Built in 2004/2005, the property boasts a strong track record of high occupancy.

440 S 2nd W • Rexburg, ID

Nelson Brothers attributes Tuscany’s success to its location, reputation, amenity set and key distinguishing features, such as private bedrooms and ample parking.

BYU- Idaho Growth

  • Brigham Young Idaho University Student enrollment for Fall 2002 to Fall 2012

property Profile

  • Year Built 2004/2005
  • Number of Units 48
  • Number of Beds 288
  • Avg SF per Unit 1.063

Target Strategy

The goal with Tuscany Place is to provide a balance of consistently high occupancy, monthly cash flow, tax efficiency and appreciation potential, anchored by the historical stability of the college. With a five minute walk to most areas on campus, Nelson Brothers views Tuscany as one of the best located properties in the market. The university recently issued a policy requiring students to share bedrooms. Prior to the change, it remains one of few properties able to lease bedrooms on an individual basis. This could potentially give Tuscany a key selling point that students value tremendously and that many competitors cannot duplicate. If BYU-Idaho enrollment continues to grow, Nelson Brothers goal is to increase rental rates and grow property value.

Targeted Benefits

  • 7% 1st Year Cash -on -Cash Return
  • 100% Current Occu pancy
  • Loca tion : 2 Bloc ks from BYU-Idaho Campus
  • Ta x Effici ency Th rou gh Deprecia tion

Potential Risk Factors to Consider

  • Real estate securities are speculative and entail a high degree of risk.
  • Suitable only for investors who have adequate means of providing for current needs and personal contingencies, can bear the economic risk of the investment, and have no need for liquidity. Investment only available to persons who are “accredited investors’ as defined in Rule 501(a) of Regulation D under the Securities Act of1933.
  • Lack of Diversification, investment in a single asset creates higher risk and may expose invested principal.
  • There is no assurance the property can generate income from investments or assurance
    of property appreciation or cash distributions.
  • A lessee may have limited financial resources and no significant net worth.
  • Loan default can result in a property foreclosure.
  • There is no guarantee that the exit strategy will occur.
  • Investments are subject to a variety of fees and commissions, including but not limited to carried interest, management fees, acquisition fee and disposition fees.

BYU – Idaho: Potential Enrollment Growth

BYU-Idaho is owned by the LDS or Mormon church. The school was initially founded as Rick’s College in 1888 and upgraded to university status in 2001. It was named BYU Idaho to convey its relationship as a satellite to the church’s flagship university – BYU, located in Provo, UT. At the time of its transition in 2000, Rick’s College had an enrollment of 8,500 students. Currently, BYUIdaho has more than 16,000 full time students. Nearly double. Nelson Brothers anticipates enrollment to continue to grow at a steady pace over the next decade.

 

ABOUT Nelson Brothers

16B Journey | Aliso Viejo, CA 92656 (800) 580-1031

Current Management Portfolio At-A-Glance:

Founded in 2007, Nelson Brothers specializes in what the firm considers to be well-positioned student housing properties. Headquartered in Orange County, CA, Nelson Brothers manages over $500 million in real estate with more than 100 employees.

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