Croatan Launches $14.9 Million Indirect TIC Offering

Croatan Investments, a sponsor of Delaware statutory trust offerings and other private placements, announced the launch of a LLC offering, Croatan Midtown at Camp Springs.

This $14.9 million offering is an indirect tenant-in-common interest in a value-add, mid-rise apartment community located in Camp Springs, Maryland.

Camp Springs is a Washington, D.C. metro area suburb and the property is a 7-minute walk to the Branch Avenue Metro Station, which provides residents transit-oriented access to regional destinations.

Midtown is within walking distance of the General Services Administration’s newly constructed U.S. Citizenship and Immigration Services Campus as well as 35,000 square feet of newly constructed retail that was developed to support the 3,700 employees being relocated to the submarket.

“We are excited to offer Croatan Midtown at Camp Springs through the independent broker dealer and registered investment advisor channels,” chief executive officer Paul Van, said. “This LLC offering is one of four TIC interests, which are all controlled by Croatan. The investors in this offering will be investing alongside some of Croatan’s longest-tenured investors, creating an attractive alignment of incentives across all investor groups and Croatan itself.”

The company says Croatan’s business plan employs a value-add strategy to renovate and reposition the asset, as exemplified across their 19-year track record. Their asset management team supported by Greystar, the largest residential property manager in the world, will complete clubhouse, exterior and common amenity upgrades as well as renovate all of the units as the property turns them over. Croatan says they anticipate rents will increase upon completion, bringing them in line with the market comparable rents.

The company says that upon completion of the renovation and stabilization of the asset in three to four years, they expect to sell or refinance the property.

Croatan Investments is a private equity real estate manager focused on multifamily investments. Founded in 2004 and headquartered in Virginia Beach, the firm has team members operating in Austin, Dallas, Atlanta, New York City, Washington D.C., and Singapore. Its portfolio currently consists of multifamily assets across the Mid-Atlantic and Sun Belt regions.

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