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Please note that the Securities and Exchange Commission has cautioned investors about unsolicited "mini-tender" offers for investment shares below market value. To learn more, investors may visit the SEC's site devoted to this topic at www.sec.gov/
investor/pubs/
minitend.htm. |
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Champion Farms Apartments
Louisville, Kentucky |
The Property
Champion Farms is a 264-unit, Class "A" luxury multifamily rental community built in 2000. The property is well located in the Springhurst area of eastern Louisville, KY. The Louisville apartment market is in the early stage of a cyclical recovery and this submarket commands among the highest rents in the area. The Louisville MSA has a balanced and diverse economy with modest growth projected over the next five years. |
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Paladin Advantage
Paladin REIT's 70% investment in this joint venture is structured as "preferred equity". The joint venture partner is Buckingham Companies and is not affiliated with Paladin REIT. Paladin REIT will receive a priority return of 8.25% annually on its invested equity from available cash flow and a priority return of its equity upon sale. In exchange for these priority distributions, our joint venture partner may receive additional cash distributions above it's 30% ownership of the property. This structure provides a higher current return and capital preservation protection to Paladin REIT while preserving the opportunity for asset appreciation. |
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| Investment Date |
June 2006 |
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| Total Capitalization |
$23,200,000 |
| Debt |
16,350,000 |
| Equity |
6,850,000 |
| Paladin REIT Investment |
4,790,000 |
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