Affordable Housing Preferred Equity Co-Investment

Nectar is pleased to present this Affordable Housing Preferred Equity Co-Investment opportunity.​ The Preferred Equity positions have been fully underwritten and funded.​ Now, investors can participate alongside Nectar in these deals to earn a strong 15% yield.​ Investors can participate for as little as $250,000 or they can take the entire pool of $2.8MM.​

**NOTE - the address listed above is the Nectar office.​ This address is NOT included in the collateral of this loan pool.​ Please execute the CA to access more information.​**

What is Nectar?

Nectar provides preferred equity and mezzanine debt to experienced real estate operators who own stabilized, cash flowing properties with low or moderate leverage.​ Investors have the opportunity to participate directly on a deal by deal basis, or in Nectar Fund 2, which owns a diversified portfolio of assets.​ Nectar is a direct lender not a broker or marketplace.​

What is being offered?

Over the past year, Nectar has made a number of preferred equity investments into entities that own and operate cash flowing real estate.​ After initial funding, investors can co-invest to purchase a pro rata share of the investments.​

Structure and Security

The pool consists of 8 preferred equity investments.​ All investments are paid off prior to the maturity date of the senior mortgage.​ 3 of the 8 notes are fully amortizing, the other 5 amortize at 25-75%.​ Remaining term ranges from 41-55 months.​

The Preferred Equity positions are senior to common equity and junior to a first mortgage.​ All financings have a Personal Guaranty with the deal sponsor, and an unrestricted power of attorney to sell the asset after sixty days with no distributions.​

Asset Types & Affordable Housing

7 Multifamily

1 Manufactured Housing

What makes these “Affordable Housing”?

5 are Naturally Occurring Affordable (80% AMI)

3 are Section 8

Markets

There are five states or districts represented in this pool of note: Georgia, Minnesota, Indiana, Michigan, and Washington DC.​ The full list of addresses will be provided in Tier 2 Diligence through DocSend.​

How to Invest

1. ​

   Set up a call with Nectar directly to learn more and gain DD access: https://calendly.​com/walker-nectar/nectar-xchange-loans-introductory-call-clone

2. ​

   Nectar is offering Participation (Co-Investment) in this portfolio of preferred equity investments at a 15% yield (based on IRR).​ Buyers may select specific investments out of the pool to invest on a deal by deal basis, or may choose to spread investment across the entire pool.​ Minimum investment is $250,000.​

3. ​

   Co-investments will be offered as priced on a first come, first served basis.​

4. ​

   Buyers may (optionally) reserve an investment by putting down a 1%, non refundable deposit while going through diligence.​ The Seller will remove that investment from the market for a 14 day diligence period.​

5. ​

   The transaction occurs by using an “Assignment Agreement”, whereby the Seller assigns a fractional interest in the preferred equity agreement to the Buyer.​ If the Buyer wishes to make amendments to the standard agreement, the Buyer can put down a $10,000 refundable deposit.​ This deposit will be used to cover the legal expenses of the Seller, and any excess will be refunded or credited to the closing.​ The standard agreement is accessible in the diligence materials.​

15% Yield to Investors backed by stabilized, cash flow assets

Investors get monthly distributions starting in month one.