• Atlanta’s Challenges: Elevated bad debt, lengthy eviction timelines (12+ months in Fulton/DeKalb), and fraud in tenant applications have hurt returns in certain Atlanta submarkets. 

• Augusta’s Strengths: 

• Tenant Profile: Canalside serves Augusta’s Downtown Medical District (27,000+ healthcare workers). ~71% of residents are medical professionals and students — a far stronger, more reliable resident base. 

• Collections: Canalside’s T-12 bad debt = 0%. Rent comps in Augusta CBD show sub-1% bad debt, even for older workforce assets. 

• Market Structure: Augusta has a multifamily construction moratorium and cost barriers to new development, ensuring no flood of new supply like Atlanta has faced. 

• Culture of Payment: Healthcare tenants and students prioritize credit and housing stability. Historical loss runs show zero insurance claims in 5 years. 

• Rent Growth Headroom: Current rents trail nearby Class A comps. All eight leases signed in August averaged 7% trade-outs while maintaining 100% occupancy. 

• Ancillary Income: Bulk internet/cable contract adds ~$40 net income/unit/month, consistent with market practice. 

• Expense Stabilization: Prior ownership outsourced maintenance and had higher non-HVAC technician costs. We underwrote conservatively to bring expenses in line with market. 

• The property benefits from a step-down tax abatement through Year 5, providing ~$250,000 in near-term savings. 

• Even when adjusting for “fully loaded” taxes post-abatement, Canalside remains attractive at $153k/unit for 2015-vintage Class A — ~35% below replacement cost. 

• Returns are not dependent on abatement; they are balanced across cash flow, modest value-add, and a conservative exit. 

• Interior Renovations: 54 lower-tier units will be upgraded (LVT flooring, granite, backsplash, fixtures, ceiling fans, stackable W&D, smart tech package). Proven rent premium in place. 

• Ancillary Income: Implementing bulk internet/cable, phased in with resident adoption. 

• Expense Reductions: Transition from outsourced maintenance to in-house with certified staff. 

• Optional Upside: Explore leasing ~100 underutilized parking spaces to the hospital system (not underwritten). 

• Vacancy: 5% physical vacancy, conservative vs. current 100% occupancy. 

• Rent Growth: 3% annual organic rent growth from Year 2 onward, below recent trade-outs. 

• Expense Growth: 3% annually; YR-1 controllable expenses padded vs. market. 

• Bad Debt: 0% assumed in YR-1, moving to conservative 0.5–1% thereafter, in line with Augusta comps

• Mission-Critical Location: Only Class A community directly adjacent to Augusta’s Medical District.
• Resident Stability: Healthcare-driven tenant base (71%), providing recession-resistant demand.
• Collections Strength: T-12 bad debt at 0%, with Augusta CBD comps consistently below 1%.
• Purchase Basis: Acquired at ~35% below replacement cost, creating intrinsic value support.
• Insurance Profile: 5-year loss runs show zero insurance claims.
• Supply/Demand Imbalance: Construction moratorium and high development costs limit new supply in Augusta CBD.
• Prudent Financing: Secured long-term, fixed-rate agency financing.

• In-place rents are still at a discount to comps. 

• Recent leasing supports this: all August leases signed at +7% trade-out while maintaining 100% leased. 

• Renovated units + tech package should achieve additional premiums. 

• Rent comps like The Ironwood (currently tied up at ~$230K/unit) support price headroom. 

• Healthcare Anchor: Augusta’s Medical District employs 27,000+ (largest in SE outside Atlanta). Major expansions underway include $1B+ in hospital system projects. 

• Defense & Cybersecurity: $2B+ federal expansion at Fort Eisenhower / NSA Augusta. 

• University Presence: Medical College of Georgia and Augusta University feed stable student/professional housing demand. 

• Tenant Profile: Healthcare professionals/students = reliable collections, strong credit, lower turnover. 

• Moratorium: The City of North Augusta imposed a multifamily moratorium, further restricting pipeline. 

• Economics: At today’s construction costs, new development doesn’t pencil; replacement cost ~$250K+/unit. 

• Result: Canalside’s 2015-vintage Class A product at ~$153K/unit faces no competitive new supply pressure in CBD. 

• Purchase Price: $16.2M ($152,830/unit). 

• CapEx Budget: $984K ($9,286/unit). 

• Financing Costs (incl. rate buydown): $316K. 

• Closing Costs/Fees: $648K. 

• Total Equity Requirement: $7.6M. 

• Market Misperception: Augusta may be unfairly lumped in with Atlanta risk. Mitigation = proven collection history + different judicial process. 

• Healthcare Concentration: Demand heavily tied to medical district. Mitigation = long-term expansions and multiple institutions (hospital systems + university). 

• Exit Cap Rate Risk: Mitigated by purchase basis below replacement and NOI growth levers. 

• Execution Risk: Value-add program is modest, not heavy lift. 

Please contact IR@hlcequity.com

Yes, you can. Each entity varies, but the HLC Equity Investor Solutions Group is happy to work with you on ensuring a smooth onboarding.

When you invest with HLC Equity you generally become a partial limited owner in the entity that is purchasing the property. The rights and ownership are detailed in the transaction offering material and we encourage you to read through all documentation diligently.

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As principal investors in the real estate business for decades, we know that offering a guaranteed return is impossible. However, our investors generally lean on our past performance as an indication of what we may be able to produce in the future. Of course, past performance is not an indication of future results. For further information on past performance please contact us today.

Yes. HLC Equity works with several wealth management firms and family offices in order to assist in investing capital on behalf of their clients.