Highlights

What it is: Springbank apartments is a 6-building 48-unit residential rental property in Dayton, Ohio.

Legal Structure: Limited Partnership

Details

Address: 4880 Springfield St, Dayton, OH 45431

Total Square Footage: 26,550

Land acres: 3.0

# of buildings: 6

# of units: 48

Unit breakdown:

  • 45 one-bedroom one bathroom units
  • 3 two-bedroom one bathroom units


*All transactions will require approval by the EMD on record, Equivesto Canada Inc, subject to suitability review and may be reduced..

View it on Google Maps here.

The Neighborhood

Location and Accessibility

The property is located on the westside of Glendean Avenue, between Springfield Street and Northcliff Drive, less than a mile from Wright-Patterson Air Force Base and 4 miles from Dayton’s Central Business District. There are several highways and significant thoroughfares that provide access into and/or through the market area. I-75, I-70 and I-675 are major interstates in the area while other significant highways include US 35 and SR 4.

Key Features

Nearby features include Wright State University, the Wright-Patterson Airforce base, a major airforce medical centre, and retail centres like The Mall at Fairfield Commons, a 1,140,000 sq. ft. shopping mall with shopping, dining, and entertainment options.

Residential and Recreational Spaces

The area includes single-family homes and multi-family developments, along with recreational spaces like Eastwood Metropark, located immediately north of the property. There is also a large number of churches, schools, golf courses and other recreational facilitates in the immediate area.

Source: Springbank Estate Apartments Appraisal Report March 2024. Login to read Appraisal. 

About the General Partner (GP)

Hay2Brick is a Canadian-based company that invests in commercial real estate across the United States and Canada. For the last 4 years, the Hay2Brick team has built a holding of $34M USD assets under management (AUM). Hay2Brick is Howard Lau, the director of this issuance’s primary business.

Source: Hay2Brick Website

Meet Chiu On Lau (Howard Lau), Director of Hay2Brick

Howard is a US/Canadian Multifamily International Real Estate Developer and Consultant specializing in Acquisitions, Due Diligence, and Multifamily Finance Capital.

He has been the principal of Hay2Brick Group for over 10 years and through Hay2Brick has acquired and managed the rehabilitation of several multifamily projects, specifically in Ohio.

He manages a team of office administrators, property managers, and contractors to upgrade the value-add projects in the Hay2Brick portfolio. Currently, he has acquired, managed and operated a total asset value of $45M CAD ($34M USD), which includes 434 apartments units, 40 buildings, and 350,000 sq ft of residential rental space.

Howard Lau is the CEO of Hay2Brick and oversees all aspects of the operations, including assets acquisition and managing rehabilitation.

The Plan

Value-add strategy

Hay2Brick will implement a renovation upgrade program for Springbank Apartments, the plan is to inject an estimated $10,000/unit to completely revitalize the inside units and the outside of the buildings.

The initial funds will be allocated to unit renovations first, as this approach maximizes the return on upgrades. If the maximum offering amount is met, the funds will be utilized for renovations across all areas, including the hallways, landscaping, parking lot, and units.


The Market

Demographics

The estimated 2024 population is 188,323 people within a 5 mile radius of Springbank Apartments. The average household income within a 5 mile radius is $74,524.

According to the appraisal, the population within a 5-mile radius of Springbank Apartments has remained steady since 2010, with no major growth or decline. It is projected to stay close to its current number within the next 4 years.

Industries and Major Employers

Dayton’s economy is anchored by Wright-Patterson Air Force Base, one of the largest employers in the region, with over 27,000 military, civilian, and contractor personnel. Other major employers include Wright State University, with a significant student and employee base, and several aerospace and technology firms in the area.

Rental Rates

The subject property’s average rental rate is $653 per month, which aligns with local market rates. Comparable properties in Dayton have rental rates ranging from $485 to $778 per month, depending on unit size and condition.

Source: Springbank Estate Apartments Appraisal Report March 2024. Login to read Appraisal. 

Payouts and Perks

Ways to Payout

1. Cash Flow

Investors are projected to receive 7% annualized cash flow paid quarterly, contingent on sufficient cash flows from rental income. This assumes timely rent payments and achieving occupancy rates necessary to sustain distributions, with potential impacts from vacancies or market fluctuations.

2. Active Appreciation

This value-add opportunity projects a property value of $5,834,743 based on a 6.25% cap rate and achieving expected net income, resulting in a $783,889.26 gain for LPs before fees. These estimates depend on successfully executing improvements, maintaining market conditions, and achieving income targets, with results subject to fees and market risks.

3. Mortgage Paydown

An estimated $123,940 mortgage pay down over six years reflects principal reduction through consistent debt servicing. This assumes no changes in loan terms, stable cash flow, and no refinancing interruptions, with potential impacts from economic or market fluctuations.

Disclaimer: Projections and forward-looking statements are not guarantees of returns. Please refer to further disclosures in Item 9 of the Offering Document.

Read offering document Read due diligence

Investment Perks

Terms and conditions: Investment amounts represent a total investment from an individual investor throughout the duration of the campaign in USD. These products will be made to order and shipped within 90 days of the closing of transactions for this offering.

About Equivesto, the Dealer

Equivesto is on a journey to reimagine how private company investment and fundraising is done in Canada. They believe in a future where access to equity investments and opportunities are not limited by privilege or network. They look to design a tomorrow that is driven on community values and collaboration.

Investing in crowdfunding and exempt market offerings has significant risk. Investors may not be able to resell their securities quickly or at all and the securities may be subject to resale restrictions. These investment opportunities may result in the loss of all or most of your investment. You may receive limited ongoing information about a company or an investment made through Equivesto. Please be aware that investments offered by third-parties through this Equivesto operated offering are risky. You may receive limited ongoing information about a company or an investment made through Equivesto.

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Equivesto – Important Legal Notice and Disclosure:

Equivesto Canada Inc. is registered as an Exempt Market Dealer under applicable securities legislation in all Canadian provinces and territories, however, no securities regulatory authority has approved or expressed an opinion about the securities offered on this platform. By accessing this site and any pages thereof, you agree to be bound by its Terms of Use and Privacy Policy. Investing in crowdfunding and exempt market offerings has significant risk. Investors may not be able to resell quickly or at all. Exempt market securities may also receive limited ongoing issuer information. You should invest only if you are prepared not to receive any return on your investment and/or lose your investment in its entirety.

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Forward-Looking Statements

Some information contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “intention”, “will”, “may”, “can”, and similar expressions are intended to identify forward-looking statements. Although the issuer and/or dealer (as applicable) believe that the expectations reflected in such forward-looking statements and/or information with regard to a given investment opportunity are reasonable, undue reliance should not be placed on forward-looking statements since there can be no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Furthermore, the forward-looking statements contained in a news release are made as at the date of such news release and there is no undertaking that any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.