West Oak

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Table of Contents How to Verify Accreditation

Table of Contents

Click links below to jump to the relevant section:

INVESTMENT - details on investment structure, the promote, our fees, and targeted cash flow for investors
BUSINESS PLAN - details on our investment strategy and deal execution, purchase and sale projection, and capital expenditures
PROPERTY - physical details of the property, its location and characteristics
SPONSOR - Principal bio for the Sponsor
DISCLAIMER

How to Verify Accreditation

In order to invest in this opportunity you must be an accredited investor as defined by the Securities and Exchange Commission, (SEC), here.

The SEC requires that we take steps to verify each investor's accreditation status and we have engaged VerifyInvestor to fulfill this role.

Once you have completed your application to invest using your secure investor portal (Agora), you will get a link to submit supporting documents to VerifyInvestor who will in turn confirm your status as an accredited investor.

Once you are invited to verify your accredited investor status, please use this walkthrough of how to submit your details to VerifyInvestor, here.

Launch Webinar Replay - March 13, 2025

Watch the current property management's promotional video for the West Oak Apartments:

Offering Summary

Key Deal Points Capitalization Hypothetical $100,000 investment FAQs on Offering Offering Updates

Key Deal Points

The West Oak investment opportunity is a 34-unit value-add multifamily property located in Wake Forest, North Carolina, a growing market with strong demographics and limited new supply. The property is being acquired for $5,095,000, a price well below the seller’s 2022 purchase price of $6,250,000.

Investment Highlights

Projected Investor IRR of 16.2% with a 1.95x equity multiple over the hold period.
Target sale date in April 2030, underwritten with a 6.0% exit cap rate, though market trends may change this assumption.
7% preferred return to investors, with quarterly cash distributions as available.
Average cash-on-cash return of 7% (8% including loan principal reduction).
Fannie Mae loan with a 5-year term, featuring three years of interest-only payments followed by two years of amortization at a fixed rate of approximately 6% +/- once locked.

Value-Add Potential

The seller has already renovated 30 of the 34 units, and the remaining 4 units will be upgraded to match market-rent levels. The property has received over $1.25 million in capital improvements across previous ownership, including interior unit upgrades and exterior enhancements.

Market & Competitive Advantage

Wake Forest is a desirable submarket with average household incomes exceeding $100K and minimal future multifamily supply in the pipeline. The property is 30 minutes from Raleigh and Research Triangle Park, a major employment hub.

Sponsor Experience

Cores Real Estate is an experienced multifamily investor and operator with nearly 1,000 units under management. Our existing management presence in nearby Raleigh provides operational efficiencies, reducing costs and enhancing performance.

Investment Thesis

With a 6.7% going-in cap rate, this opportunity presents a strong basis for future upside. The acquisition price per unit is below recent comparable sales, providing built-in equity from day one. If interest rates decline, the exit cap rate could be lower than underwritten, further boosting investor returns.

For investors seeking stable cash flow, proven sponsorship, and market-driven upside potential, West Oak offers a compelling opportunity in a supply-constrained, high-income submarket.

Capitalization

Capitalization & Deal Structure

The West Oak investment will be capitalized using a combination of equity from investors and debt financing from Fannie Mae. The key components of the deal’s capital structure are as follows:

Minimum LP investment: $50,000
Debt financing: The acquisition will be financed with a Fannie Mae loan featuring:
- 5-year term
- Fixed interest rate of approximately 6% +/- when locked.
- Three years of interest-only payments, followed by two years of 30-year amortization.
Investor distributions:
- 7% preferred return paid before any profit-sharing
- Quarterly cash distributions as available
Waterfall structure: Investors receive a preferred return first, followed by profit-sharing in accordance with the agreed terms.

This structure is designed to provide stable income during the hold period while maximizing total return upon sale in 2030.

Hypothetical $100,000 investment

FAQs on Offering

What are the risks associated with this investment?
As with any real estate investment, key risks include market downturns, interest rate fluctuations, unexpected maintenance costs, and slower-than-expected rent growth. The sponsor has underwritten the deal conservatively, but investors should be prepared for potential variability in returns. Please read the offering documents for full disclosure of all risks before making your investment.
How will investors receive distributions, and how often?
Investors will receive quarterly cash distributions, subject to available cash flow. The 7% preferred return is prioritized, and additional distributions depend on the property’s financial performance and the waterfall structure.
What is the exit strategy for this investment?
The target exit is in April 2030, based on a 6.0% projected cap rate. If interest rates decline or market conditions improve, the cap rate at sale could be even lower, leading to higher potential returns. Other potential exit scenarios include refinancing if market conditions favor it.
How is this investment different from other multifamily opportunities?
West Oak is priced below comparable recent sales, providing a strong acquisition basis. The deal also benefits from limited new multifamily supply in the Wake Forest market, strong local demographics, and existing property improvements. The sponsor has a track record of managing similar properties and achieving strong returns.
What happens if the property underperforms?
The sponsor has structured the deal conservatively, with an existing 6.7% cap rate at acquisition and value-add potential from unit renovations. However, if the property does not meet projections, investors could see reduced distributions, a delayed exit, or a lower total return. The deal structure ensures that the sponsor shares in both the risks and rewards.

Offering Updates

INVESTMENT OBJECTIVE

The West Oak investment aims to generate attractive risk-adjusted returns through a combination of stable cash flow, value-add appreciation, and a strategic exit plan. The strategy focuses on acquiring the property at a below-market price, completing targeted unit renovations, and optimizing operations to maximize rental income.

Investors will benefit from quarterly distributions, a 7% preferred return, and long-term capital appreciation with a projected 16.2% IRR and 1.95x equity multiple over the hold period.

The investment leverages strong market fundamentals in Wake Forest, where high-income demographics and limited multifamily supply create a favorable environment for rent growth.

By capitalizing on existing property improvements and leveraging Cores Real Estate’s operational expertise, the investment is designed to mitigate downside risk while enhancing overall returns. The planned exit in April 2030 aligns with projected market conditions to maximize investor returns at disposition.

Distribution Strategy Capital Calls Organizational Chart Sources and Uses Debt Financing Fees and Organizational Expenses Depreciation benefits

Distribution Strategy

Distribution Waterfall

Cash Flow Waterfall

First, to the Investors and Manager pro rata until a 7% preferred return
Second, 30% to Manager as promote and 70% to the Manager and Investors pro rata in proportion to their percentage interests.

Capital Transaction Waterfall

First, to the Investors and Manager pro rata until a 7% preferred return
Second, to Investors and Manager pro rata until return of capital contributions
Third, to Manager until receive 7% preferred return on its Profits Interest Distribution Amount
Fourth, to Manager until payment of its Profits Interest Distribution Amount
Fifth, 30% to Manager as promote and 70% to the Manager and Investors pro rata in proportion to their percentage interests.

Note, the Profits Interest Distribution Amount is approximately $97,565, and will be payable per the terms of the Company operating agreement in lieu of any actual acquisition fee or construction management fee.

Potential investors should review all of the offering documents, including the LLC Agreement, in full detail.

Capital Calls

Organizational Chart

Sources and Uses

Debt Financing

The acquisition of West Oak will be funded through a combination of investor equity and debt financing. Investor capital will provide the required equity portion, while the remaining funds will come from a Fannie Mae loan structured to optimize cash flow and returns. The loan will have a five-year term with a fixed interest rate that will be around 6% +/- once locked. To enhance early-stage cash flow, the loan features three years of interest-only payments before transitioning to amortization for the final two years.

Investor contributions will be structured with a minimum LP investment of $50,000, and participants will receive a 7% preferred return before profit-sharing. Quarterly distributions will be made as available from operating cash flow. The deal follows a waterfall structure that prioritizes investor returns, ensuring that capital is returned first, followed by performance-based profit splits.

The GP is contributing $302,435 of cash (15% of the equity) to the deal and is also rolling in their $76,425 acquisition fee and $21,140 construction management fee into the deal so their total equity contribution will be 20%.

This capital structure is designed to balance conservative leverage with strong investor alignment, providing both immediate income potential and long-term appreciation through operational improvements and a targeted exit in April 2030.

Fees and Organizational Expenses

Acquisition Fee (1.5% of Purchase Price)
This one-time fee compensates the Sponsor for sourcing, underwriting, and closing the deal. It covers the time and effort spent identifying the property, negotiating terms, and managing the acquisition process. It also covers 'dead-deal' costs - those associated with underwriting but passing on prior deals before getting to this one.
Construction Management Fee (7% of Construction Costs)
As renovations are a key part of this value-add strategy, the Sponsor earns a fee for overseeing construction activities. This ensures that unit upgrades and property improvements are executed efficiently and in line with the business plan.
Property Management Fee (4% of Collected Income)
An ongoing fee paid from rental income to cover the daily operations of the property. This includes tenant management, maintenance coordination, leasing efforts, and ensuring the property runs smoothly.
Asset Management Fee (1% of Collected Income)
This fee compensates the Sponsor for higher-level strategic oversight, including financial reporting, market analysis, and ensuring the investment stays on track to meet its projected returns.

Depreciation benefits

As part of our strategy to maximize investor benefits, we will be conducting a Cost Segregation Analysis on this property. This approach accelerates depreciation deductions, allowing for significant bonus depreciation in the early years of the investment.

Each Limited Partner (LP) investor will receive their pro-rata share of the depreciation, which can be used to offset taxable income. In many cases, the depreciation passed through to investors will be sufficient to significantly reduce, or in some cases fully offset, the taxable portion of their distributions. However, individual tax circumstances vary, and we encourage investors to consult with their tax advisor.

THE PROPERTY

Property Overview

Property Name: West Oak
Location: Wake Forest, North Carolina
Unit Count: 34 Units
Property Type: Value-Add Multifamily Investment Opportunity
Purchase Price: $5,095,000
Current Ownership: Seller purchased the property in August 2022 for $6,250,000

Property Condition and Renovations

The current owner has invested $574,000 in capital improvements, primarily focused on interior unit upgrades and some exterior enhancements.
The previous owner spent $675,000 between 2016 and 2022, primarily on exterior upgrades with some interior improvements.
In total, $1.25 million has been invested in capital improvements over recent years.
The property is described as being in a well-maintained state.

Unit Features

All 34 units are two-bedroom, two-bathroom layouts.
Each unit is approximately 850 square feet.
Every unit includes a patio or balcony.
Stackable washer/dryer included in all units.
Walk-in closets in each bedroom.
Storage closet located off the balcony or patio.
Top-floor units have vaulted ceilings.

Planned Renovations

The seller has already renovated 30 of the 34 units.
We plan to renovate the remaining four units to match the upgraded finish level already in place.
Underwritten rents reflect pricing that has already been achieved by the seller.

Community Amenities

Grilling area
Dog park

Market and Competitive Positioning

Wake Forest is a high-demand market with strong demographic trends, including average household incomes exceeding $100,000.
The property is 30 minutes from Raleigh and Research Triangle Park, a major employment hub.
There is only one other multifamily project under construction in the Wake Forest market, and there are minimal future developments planned.

Operational Efficiencies

Cores Real Estate currently owns and manages nearly 1,000 multifamily units.
We already own a property in Raleigh, which will allow us to share team members between properties, creating operational efficiencies.

Financial Metrics

Going-in cap rate: 6.7%
Exit cap rate (underwritten): 6.0% at the planned April 2030 sale
Preferred Return: 7%
Estimated Investor IRR: 16.2%
Estimated Investor Equity Multiple: 1.95x
Average Cash-on-Cash Return: 7% / 8% (including loan principal reduction)

Capital Improvements Acquisition and Reversion

Capital Improvements

Planned Capital Improvements for West Oak

West Oak has already undergone significant renovations under its current and previous ownership, with a combined $1.25 million invested in interior and exterior upgrades. However, we have outlined additional improvements to further enhance the property’s appeal, maximize rental income, and improve operational efficiency.

Unit Interior Upgrades

Completion of Remaining Renovations: The seller has already renovated 30 of the 34 units, bringing them to a modernized finish level. We plan to renovate the remaining four units to match the upgraded standard.
Updated Finishes: These renovations will include enhancements such as new flooring, upgraded kitchens and bathrooms, modern appliances, and fresh paint to maintain consistency with the already upgraded units.
Vaulted Ceilings in Top-Floor Units: While not a renovation, the top-floor units benefit from vaulted ceilings, which add to their appeal.

Property-Wide Enhancements

Operational Efficiencies: We will integrate property management and asset management services by leveraging our existing team in nearby Raleigh. Staff from another property in our portfolio will be utilized to streamline operations, reducing overhead costs and improving response times.
Rents Adjusted to Market: As part of our business plan, we will bring rents in line with market rates, leveraging the recent renovations and demand in Wake Forest.

Strategic Value-Add Approach

By completing these final unit renovations, we ensure the entire property is fully modernized, enabling us to capture higher rents that are already being achieved at the property. Additionally, by utilizing our existing, experienced property management team, we create cost efficiencies and improve tenant satisfaction without adding significant operational expenses.

Acquisition and Reversion

Acquisition Strategy

We are acquiring West Oak, a well-maintained 34-unit multifamily property in Wake Forest, North Carolina, at a purchase price of $5,095,000. The property has already undergone significant capital improvements, with $1.25 million invested in renovations by previous owners. Our investment strategy is centered on completing the final unit upgrades, optimizing operations, and aligning rents with market rates.

To finance the acquisition, we are securing a five-year Fannie Mae loan with a fixed interest rate of around 6% +/- once locked. The loan structure includes three years of interest-only payments, followed by two years of amortizing payments (30 years), allowing us to maximize early cash flow and reinvest in property improvements.

From day one, we will implement our property and asset management efficiencies by leveraging our experienced team in nearby Raleigh. This will ensure smooth operations, cost savings, and a high standard of service for tenants, all of which contribute to increasing property value over the hold period.

Reversion (Exit) Strategy

Our target exit date is April 2030, at which point we plan to sell the property at an underwritten cap rate of 6.0%. If market conditions are favorable and interest rates decline over the next few years, we anticipate the possibility of a lower cap rate at exit, which would further enhance returns.

The value-add improvements, combined with stable management and market appreciation, position West Oak for a profitable disposition. At the projected sale, we are projecting the following for investors:

A 16.2% estimated investor IRR
A 1.95x estimated investor equity multiple
A 7% preferred return with quarterly distributions throughout the hold period

By executing our renovation and management strategy effectively, we aim to maximize returns while mitigating risk. Our approach ensures that when the time comes to exit, we will have positioned West Oak as a desirable, fully stabilized asset, making it attractive to future buyers.

Regional Description Location Physical Details Comparables

Regional Description

West Oak is located in Wake Forest, North Carolina, a high-growth market with strong demographics and economic fundamentals. The area boasts average household incomes exceeding $100,000, signaling a solid renter base with strong purchasing power.

Wake Forest is situated 30 minutes from Raleigh and the Research Triangle Park, one of the largest employment centers in the region. The area is home to numerous Fortune 500 companies, top universities, and a thriving tech and life sciences sector, making it attractive to professionals seeking high-quality housing options.

The market benefits from limited new multifamily supply, with only one multifamily project currently under construction and minimal additional developments in the pipeline. This supply constraint, coupled with continued population and job growth, supports sustained demand for rental housing and allows for continued rent growth at West Oak.

Wake Forest also offers an appealing quality of life, featuring parks, trails, and a historic downtown with restaurants, breweries, and retail. The planned S Line Amtrak station, expected to be completed by 2030, will further enhance regional connectivity, making the area even more attractive for residents and investors alike.

Location

THE LOCATION

West Oak is located in Wake Forest, North Carolina, a desirable and growing market within the Raleigh metropolitan area. The property is positioned 30 minutes from Raleigh and the Research Triangle Park, a major employment hub known for its concentration of technology, life sciences, and research-driven companies.

The town of Wake Forest features strong demographics, including average household incomes exceeding $100,000, contributing to a stable and affluent renter base. The area is well-served by high-scoring schools, further enhancing its appeal for residents.

Wake Forest offers a walkable and historic downtown, with a variety of restaurants, bars, breweries, art galleries, and shops. Residents also have access to E. Carroll Joyner Park, a 117-acre green space featuring paved trails, an amphitheater, and a pecan grove.

Future transportation infrastructure improvements include the planned S Line Amtrak station, which is expected to be completed by 2030. This new transit option will provide enhanced connectivity to Raleigh and other key destinations in the region.

Physical Details

Physical Details

West Oak is a 34-unit multifamily property designed with two-bedroom, two-bathroom layouts, each approximately 850 square feet. The property offers modernized unit interiors, with most apartments already renovated to an upgraded standard. Each unit includes a private patio or balcony, walk-in closets in both bedrooms, and a stackable washer/dryer. Upper-floor units feature vaulted ceilings, adding to their spacious feel.

The property has received $1.25 million in capital improvements from previous owners, covering both interior and exterior upgrades. While most units have been renovated, the remaining four will be upgraded to match the existing high-quality finishes.

Community amenities include a grilling area and a dog park, offering residents outdoor spaces for relaxation and socialization. The property’s landscaping and exterior condition reflect the ongoing investment in maintenance and upgrades.

West Oak is well-positioned within Wake Forest, North Carolina, benefiting from a quiet residential setting while remaining close to urban conveniences. The combination of upgraded interiors, desirable amenities, and a well-maintained exterior makes West Oak an attractive housing option for renters in the area.

Comparables

Value-Add Multifamily Investment Opportunity
Wake Forest · North Carolina
34 Units

Offering is open for investment. Please access the investment portal to review offering documents and make your investment.

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Estimated Investor IRR	16.2%
Estimated Investor Equity Multiple	1.95x
Target Sale Date	April 2030
Purchase Price	$5,095,000
Preferred Return	7%
Average Cash-on-Cash *Average Cash-on-Cash (Including Loan Principal Reduction)	7% / 8%*

Resources

- - - Maximizing Returns Through Market Expertise

- - - Mitigating Risk and Maximizing Value

- - - Why Doctors Excel in Real Estate Investment

- - - Our Approach to Debt

- - - Our Core Values

- - - Risk Management: Protecting Investor Capital

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DISCLAIMER

Any investments being offered are pursuant to an exemption from registration under Regulation D of the Securities Act of 1933, specifically Section 506(c). As such, only investors who are verified as being "accredited investors" will be able to invest in this opportunity, and only upon receipt, review and execution of the definitive offering documents. Please refer to www.SEC.gov for further guidance regarding accreditation.