Fund strategy and terms
A disciplined, Midwest first development strategy
The Midwest Multifamily Development Fund focuses on ground up Solhaven communities in resilient Midwest markets, targeting income producing, inflation aware multifamily assets backed by Wangard's integrated development and operations platform.
Targets and terms are summarized here for convenience and do not represent guarantees. The fund's private placement memorandum and operating agreement control in all cases.
Fund strategy highlights
The fund is designed for accredited investors who want exposure to modern, well-amenitized multifamily communities in stable yet growing Midwest markets. The approach pairs a repeatable Solhaven prototype with local market knowledge and in house development, construction management and property management capabilities.
- Development only focus. The fund invests in new build multifamily communities rather than acquisitions of existing properties.
- Solhaven prototype. Two story direct entry buildings, efficient floor plans and a consistent brand experience aim to support predictable construction, lease up and operations.
- Midwest and Central U.S. markets. Target locations combine strong employment, lifestyle amenities and favorable rent versus own dynamics.
- Risk aware underwriting. The team emphasizes realistic rents, conservative leverage and the use of third party valuations when appropriate.
Track record of success
Wangard’s multifamily and mixed-use experience includes thousands of units delivered and managed across multiple market cycles, with a focus on income-producing, institutional quality assets in Midwest markets.
Figures below represent Wangard’s broader real estate track record and are approximate. They are not specific to this fund and do not guarantee future results. Past performance is not indicative of future performance.
Multifamily units online
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Units under development
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Units in construction pipeline
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Sq ft assets under management
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Properties owned and/or disposed
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Average historical IRR
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Average historical equity multiple
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Key terms at a glance
These terms summarize the current expectations for the fund. Final terms are set out in the executed fund documents and may change over time.
- Property type
- Ground up Solhaven branded multifamily communities.
- Geography
- Wisconsin first, with the ability to invest in select Midwest and Central U.S. markets.
- Target fund size
- Approximately 30 million dollars of equity commitments.
- Number of assets
- Expected portfolio of roughly four to six Solhaven communities.
- Project unit count
- Target of about 150 apartment homes per community, subject to site and market.
- Community style
- Two story direct entry prototype design with modern finishes and walk up access.
- Minimum investment
- Class A: 2,000,000 dollars or more. Class B: 100,000 dollars minimum.
- Preferred return
- 9 percent annual preferred return on contributed capital, not guaranteed.
- Target net IRR
- Target of 18 percent or greater over the life of the investment, net of fund level fees, based on underwriting assumptions.
- Target cash on cash
- Projected stabilized cash yields in the mid single digit range, generally 5 to 7 percent, subject to market conditions and leverage.
- Target deal size
- Total project capitalization typically in the 25 to 50 million dollar range per community.
- Timeline
- Capital deployment targeted over roughly 24 months, with an intended fund life of approximately 5 to 7 years, subject to extensions.
All figures reflect current targets and estimates only. They do not represent promises or guarantees and are subject to change. Please review the private placement memorandum for comprehensive information about terms and risks.
Waterfall and alignment of interests
Investors receive a preferred return on their committed capital before the sponsor participates in a performance based promote. This structure is intended to align incentives around both income and total return.
Class A interests
Intended for larger investors with commitments above 2,000,000 dollars.
- 9 percent annual preferred return on contributed capital.
- Return of investor capital.
- Thereafter, 75 percent of remaining distributable cash to investors and 25 percent to sponsor.
Class B interests
Available for accredited investors with commitments starting at 100,000 dollars and up to 2,000,000 dollars.
- 9 percent annual preferred return on contributed capital.
- Return of investor capital.
- Thereafter, 70 percent of remaining distributable cash to investors and 30 percent to sponsor.
This summary is simplified and does not show all steps or nuances of the distribution waterfall. Actual allocations will follow the detailed provisions in the fund operating agreement and other governing documents.
Fee structure overview
The fund and its underlying projects bear customary costs and fees for formation, financing, development and ongoing management. These are typical for ground up multifamily development and are fully described in the offering documents.
Fund level costs
- Organizational and setup expenses for the fund entity.
- Ongoing accounting, audit and legal costs.
- Reasonable travel and due diligence expenses.
Project level fees
- Customary development and construction management fees at the project level.
- Financing and refinancing related costs and fees.
- Leasing and disposition fees consistent with market practice.
Ongoing management
- Asset management fees for oversight of the fund and projects.
- Property management fees based on a percentage of gross receipts.
- Third party costs for insurance, taxes and operations.
The specific fee percentages and amounts may vary by project and over time. Investors should review the full fee and expense disclosure in the private placement memorandum and operating agreement before making any commitment.
Discuss the fund with our capital markets team
If the strategy and terms are a potential fit for your objectives, connect with Wangard's capital markets team to request full offering materials and discuss current pipeline opportunities.