LTL Multifamily LLC, a multifamily real estate sponsor, announced the company has placed its recently acquired Royal Palms Apartment Homes into a Delaware statutory trust offering, LTL Royal Palms-Baton Rouge, DST. The offering seeks to raise $22.8 million and projects paying an average cash-on-cash distribution equal to $4.6%, paid quarterly, over 10 years.
LTL says the offering is only available to accredited investors and will be distributed by Ni Advisors as the managing broker-dealer.
“We are excited to offer the independent broker-dealer community the opportunity to invest with our latest client through this DST offering,” said Pierre Hilario, executive vice president of Capital Markets at Ni Advisors. “This is a great way for investors to have exposure to multifamily and afford the tax deferment that a 1031 exchange can provide them.”
Located in Baton Rouge, Louisiana, LTL purchased the Royal Palms Apartment Homes property in September 2022 for an undisclosed amount.
“Royal Palms Apartments is a unique opportunity because it is new construction, the leased rents are significantly below market and we have excellent debt structure,” according to Lyle Lansdell, president and chief executive officer of LTL Multifamily LLC. “We have already seen new leases from the property exceed 20% higher, $1,244 per unit, than the in-place leases, concurrent with the plan of creating value for the shareholders.”
Built in 2021, Royal Palms Apartment Homes is a 126-unit apartment community located near Celtic Studios, Louisiana’s largest film studio.
The company says LTL Multifamily’s newest partner, Dee Patel, has contributed approximately $3.7 million toward the closing of Royal Palms Apartment Homes.
“I recognized a unique opportunity that LTL and Royal Palms presented and knew we had to move quickly to secure the property,” said Patel.
Established in 1995, LTL and its affiliated companies has more than $8 billion in transacted real estate in the private equity and institutional investor markets. The principals of LTL Multifamily currently have over $500 million in assets under management with an excess of 100,000 units owned and managed.
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