KINGS CASTLE limited partneRship investment in apartment buildings
Introduction
This real estate rental property investment is primarily into carefully selected apartment buildings and secondarily into land parcels. Eleven founding limited partners, including four shareholder General Partners of Prestigious Properties invested $520,000 to start this Limited Partnership (LP). The target raise is $15 million, as was the case with our previous offering (PRISM:A) which was closed to new investors in December 2009 after the target was reached. As money is raised for Kings Castle LP, we purchase properties that we have located, researched and against which we have conducted a stringent review of our investment strategy. In December 2010 we purchased our first Kings Castle property.
Our 6th Multifamily Real Estate Investment Limited Partnership Offering
Kings Castle LP is our 6th Limited Partnership offering to date, each of which has been focused primarily on multifamily/apartment building real estate investments. For detailed information on our past investments we welcome you to review our track record. You can can also look at an overview ourinvestment history, and use our interactive track record player to look at ROI performance on specific properties. You can also look at our PRISM:A page.
Above Board Philosophy With No Inflated Going-In-Prices
We take great pride in our corporate philosphy of sharing a wealth of information with our investors and being very up front about investment prospects and performance. For instance, unlike many other LP offerings we do not inflate going-in-prices of properties we purchase and as such, the general partners do not make a return on investment until the limited partners do.
Early Investment Incentives
Kings Castle LP is an exciting partnership opportunity with tremendous incentives in place to attract early investment. By clicking the investor interest information button at the top of any page of this website, you can get a complete information package and find out about current incentives.
With this opportunity now having been available through 2010 we have raised significant cash, including a lot of limited partner participation in the RRSP investment channel. But please be advised that the early participation incentives will soon disappear, with most of the early investment money already in place. We are now actively seeking to acquire properties in regional and local economies that have been idenitified to have the strongest growth potential.
Castleview Park Apartments: The First Apartment Building Investment Acquisition
Every property is put to stringent review against our investment strategy. The first of these properties to have passed our tests in the Kings Castle Limited Partnership is a large Calgary-based apartment building which we purchased for $14.65 million in December 2010. It is a 120-unit building called Castleview Park Apartments. After keeping a lot cash on the sidelines for the last couple of years when it came to Calgary, and Alberta in general,we now see economic prospects in this resource-rich province returning to normal. According to a recent research report by the Real Estate Investment Network (REIN), Calgary is the #1 city for real estate investment not only in Alberta, but for all of Canada.
Click on the picture and link below to learn more about why Castleview Park Apartments is such an excellent investment opportunity. Since it is our first purchase as part of our new LP offering, to gain some perspectiveon buying strategy you may also want to take a closer look at some of the properties included below which are from our previous LP offering.
| Here is the 1st property that has been acquired in Kings Castle LP | ||
• 120 unit apartment building in Calgary, Alberta (Castleview Park Apartments) |
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| To give you further perspective, here are some properties from our previous Limited Partnership (now closed to new investment). | ||
• 25 unit apartment building in Yorkton, Saskatchewan (Sherbrooke House) |
• 48 Unit apartment building in Yorkton, Saskatchewan (Parkview Place) |
• 65 Unit apartment building in Campbell River, B.C. (Discovery Village) |
• 108 Units - two apartment buildings in Abbotsford, B.C. (Abby Glen) |
• 8 Unit apartment building in Yorkton, Saskatchewan (Highland Estates) |
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Kings Castle - Investment Strategy In A Nutshell
Focus on apartment buildings because this real estate class is less volatile than the stock market or other real estate sectors, while having good upside plus built-in inflation protection. Keep door open to invest up to 25% elsewhere, such as in residential land development, when the price is right. Here's more on why we choose apartment buildings.
Look for buildings in regional economies that are strong or expected to be strong in coming years, such as Western Canada or select US states such as Texas.
Evaluate buildings for sale, sifting through the list over many months to find the best values.
Purchase selected buildings as good deals are found, typically with 15-35% cash down.
Increase value of assets through prudent renovations, which support higher rents and resale values.
Increase value of assets through expert property management, further supporting rents and resale values.
Use cash flow from renters to maintain the asset and flow excess into the LP as available.
Allow time for cash flow from rents paid to lower the mortgage debt on each building so that the LP owns more of each, and thereby increasing the value of its original investments outside of the increases in market value of the assets themselves.
Allow time for local economic growth/in-migration/tightening vacancy rate to increase market value of assets.
Periodically sell or refinance buildings to produce investor profits, and at some point liquidate the LP and its assets for the same reason.
How You Participate
There is a minimum $25,000 investment for eligible and/or accredited investors. The set value of one LP unit is $5,000 and each limited partner will own at least 5 units. Your investment term is a minimum of 5 years, with optional quarterly positive cash flow. However, the LP will also allow redemption of LP units, regardless of the reason. There is a decreasing penalty to redeem your investment before 5 years from the initial investment.
Target Return
Double-digit average annual ROI over 5 year investment with optional 5% annual cash distribution or DRIP (Distribution Reinvestment Plan).
Investor Protection
• General Partners sign all required personal guaranties for mortgages (investors like you are Limited Partners).
• Your total liability is limited to your investment.
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General partners are motivated to protect investors because they receive the bulk of their profits through their equity share, which is only paid out after investors’ initial investments have been returned to them. Here's how we share profits:
STEP 1: 100% of all cash distributions will be sent back to investors until they have received an amount equal to their initial capital contribution
STEP 2: 60% to Investors and 40% to Prestigious Properties, until investors have received a 100% return on their original investment
STEP 3: 40% to Investors and 60% to Prestigious Properties
This stepwise process generally takes a few years to transpire and compares favourably to a classic hedge fund model where profits are distributed to managers annually, encouraging high risk/immediate return investing on your behalf. Should the fund collapse the following year, the net result can be that managers still walk away with huge fees the previous year and you still lose all your money as has happened to many in the 2008 stock market crash!
Management Fees
Commissions paid to people who help find investors: 6% of gross investments (up to 8% if a third party sales representative is involved). Asset Acquisition Fee: 1% of the asset purchase price. Annual Asset Management Fee: 0.5% of Asset Value. Refinance Fee: 0.7% of refinance amount. Administration Fee: 1% of gross investments.
Find Out More
You owe it to yourself to find out more!
> Download our KINGS CASTLE LP information brochure.
> Receive more detailed investor information package on KINGS CASTLE LP
