FreshStart, SC

 

FreshStart – Invest with Us

 

freshstart_logo

FreshStart is a joint venture between Four Rivers Capital (FRC), a respected capital management firm, and Southeastern Property Management (SPM), an experienced affordable housing development and management company.  As such, FreshStart is expertly positioned to purchase, renovate, stabilize, and manage affordable housing rental units in lower tier markets throughout the Southeast.  Our immediate growth opportunities are so great that we are seeking qualified financial partners to ensure that the income and long-term wealth that can be generated does not go unrealized.  We have identified a minimum and clearly attainable target acquisiton volume of approximately 2,500 units over just 60 months.

The key pieces are in place to ensure success.

  • Each of the identified affordable projects is sorely needed to meet the ever-growing demand.  In many cases, the rents will be paid directly by the government.
  • The principals behind Southeastern Property Management have decades of development experience, have earned the respect of local housing authorities and have a successful track record in this arena.
  • Four Rivers Capital is made up of highly respected financial, operational and marketing veterans and has extensive experience in the investment banking industry, having funded transactions in excess of $135 million.

 

The Government Factor

The federal government, through the HUD and its local public housing agencies, provides  subsidies to qualified low income families, the elderly, and the disabled.  This program has been in existence since 1937, and is not expected to end any time soon, due to the growing income inequality in this country.  In addition, since SPM identifies, acquires and renovates buildings at costs that result in affordable rents, the units are in high demand by those ineligible for subsidies as well.

 

FreshStart Board of Directors

Andrew C. Breaux:  Mr. Breaux earned his Bachelor’s Degree from Louisiana State University (Marketing).  He is a business leader and entrepreneur with over twenty years of experience as a business owner, real estate investor and financial advisor.  Mr. Breaux has managed real estate and investment portfolios in excess of $25 million.  Mr. Breaux holds a South Carolina real estate license and actively seeks and vets opportunities for client investors.  He has a proven ability to build successful teams and manage projects with fiduciary responsibilities.

Edward (Butch) Clark:  Mr. Clark has been in the real estate development business for over 40 years.  He has completed hundreds of projects including single and multi-family housing developments, mixed-use projects, deep water and dry stack marinas, commercial strip centers and free standing commercial buildings.  He has spent the past five years in the affordable housing segment.  During that period, he has purchased and renovated over 350 units in conjunction with local housing authorities throughout the southeast, including the SC Lowcountry Loan Fund, formerly the Lowcountry Housing Trust in Charleston, SC.  Mr. Clark is the Managing Member of Southeastern Development Group.

Eva DiNapoliMs. DiNapoli graduated from Georgia State University with a degree in Accounting (with Honors) and obtained her CPA designation after working with a Big-6 accounting firm in Atlanta, GA.  She expanded her business acumen at Source Finance (national recruiter for accountants and CPA’s), Phoebe Putney Regional Hospital, Bristol-Myers Squibb, and a private profit recovery and audit firm.  Additionally, Ms. DiNapoli has owned and operated multiple private companies through her family office investment group, including a national transportation company, industrial warehouses, plastics manufacturer, and various real estate entities.  Ms. DiNapoli has also personally invested in multiple De Novo Bank start-ups.  Her private financial consulting firm, Four Rivers Capital, is based in Mt. Pleasant, SC.

William S. Irvin:  Mr. Irvin is a licensed South Carolina Real Estate Broker having closed over $30 million in real estate sales over the past five years.  Mr. Irwin also is the Managing Member of Southeastern Property Management, a partner in Southeastern Development Group, and President of numerous residential and commercial homeowner associations.  He has been active in HUD program administration with particular experience in the Neighborhood Stabilization Program, Section 223 financing, and affordable housing voucher programs.  Mr. Irwin’s property management company manages several hundred affordable housing units across the southeast.

Peter Ricciardi:  Mr. Ricciardi graduated cum laude from the University of Pennsylvania with a BA in Economics at the age of 19, having taking the majority of his course load within Penn’s distinguished Wharton School.  A successful entrepreneur, a franchise veteran and an experienced professional sports executive, Peter maintains a robust clientele to which he provides branding, marketing, sales and training services.  His clients include nationally and internationally recognized clients as well as vibrant small businesses and local start-ups.

Charles K. Werk:   Mr. Werk graduated from The University of Georgia with an undergraduate degree in Marketing and went on to earn an MBA in Finance from Georgia State University.  He spent the next two decades as a commercial banker with SunTrust Bank, Manufacturer’s Hanover Trust and The First National Bank of Chicago.  For the past twenty years, he has been the Founder, President and CEO of Flint River Capital, Inc.  Flint River has been an investor and operator of numerous companies within the manufacturing, transportation, warehousing and real estate industries.  Mr. Werk has served on the boards of three commercial banks, most recently with Harbor National Bank in Charleston, SC, where he was a shareholder and an Organizing Director.

 

Four Rivers Capital (FRC)

Four Rivers Capital is a privately held family office investment group, based in Charleston, SC that deals primarily with real estate transactions through direct and indirect property ownership, focusing specifically on value-added transactions, distressed assets and new development.

 

Southeastern Property Management (SPM)

Edward (Butch) Clark and Will Irvin are quality, unassuming individuals with an established reputation for all types of successful development projects, each with decades of experience identifying and delivering on diverse real estate opportunities.  They have established solid relationships with housing authorities and other agencies throughout the Southeast that are charged with increasing the amount and quality of low-income housing, resulting in an explosion of ever-increasing referral opportunties.  So far, they have purchased and managed over 350 affordable housing units around the Southeast.

Some of the housing authorities with whom SPM has built-in relationships:

  • The Lowcountry (SC) Housing Trust
  • Charleston County (SC) Administrator
  • City of Charleston (SC) Housing Authority
  • North Charleston (SC) Housing Authority
  • Greenville (SC) Housing Authority
  • Charleston County (SC) Development Services
  • City of Myrtle Beach (SC)
  • Housing Authority of Myrtle Beach (SC)
  • Spartanburg (SC) Housing Authority
  • City of Tupelo (MS)
  • Clarksdale (MS) Housing Authority
  • Mississippi Home Corp
  • TVA Housing Authority

 

Being keenly aware of the potential growth in this sector, SPM has joined with FRC to form this exciting new venture, FreshStart.  SPM & FRC are seeking an equity partner or partners to join them in a concerted effort to roll out a significant volume of affordable housing assets over the next five years.  Currently, SPM has targeted approximately 500 apartment units encompassing four separate properties in the Mississippi market.  Purchase money required for this initial tranche is approximately $7 million.

Total estimated capital necessary to purchase a total of 2,500 units over the next 60 months is approximately $35 million, of which approximately $7 million in equity capital is needed.

 

By the Numbers

1937 is the year the federal government first initiated a public housing program
2,500 is the minimum number of apartment units that FreshStart is seeking to purchase over the next 60 months
7% is the preferred coupon rate to be paid to investors
20% is the estimated IRR for a fully collateralized investment
4 decades mark the management experience of each key principal of FreshStart
$54,000,000   is the estimated market value at stabilization of 2,500 units (a value increase of approximately $20 million)
350 existing units are currently owned by the management group
24 is the maximum months anticipated unitil stabilization of each property
100% is the expected return of equity investment through HUD refinance
80% is the threshold of the area’s median combined income at which HUD provides benefits to local families
 

 

The discerning investor will certainly appreciate the risk/reward ratio.  FreshStart, welcomes the opportunity to share these opportunities with potential investors in greater depth, offering a review of the financial projections in detail, providing introductions to the principals at SPM and facilitating on-site visits.

Read more about FreshStart’s Affordable Housing Investment Opportunities