X Chicago Student Housing

Newly built in 2018 as luxury apartments, X Chicago is poised for conversion to a high-end student housing community due to its location directly across the street from the Univ. of Illinois - Chicago.

Location Chicago, IL
Property Type Student Housing
Closed Date Aug 2022
Realized Investor IRR %
Realized Equity Multiple x
Realized Investment Period years
X Chicago Student Housing, a Student Housing real estate investment opportunity in Chicago, IL listed on the CrowdStreet Marketplace.
Status
deal_status_icon Closed
Investment Strategies
Core

Existing assets generally with little need for capital improvements, typically in major metros, with high occupancy, longer weighted average lease term (WALT), creditworthy tenants, and rents near or above market rate.

Core-Plus

Existing assets with typically attractive occupancy rates, but with the potential to increase cash flow or property value through light improvements, operational efficiencies, and slight increases to the amount or quality of tenants, or rental rates.

Value-Add

Projects requiring significant investment, improvement, and oversight to achieve goals, likely including interior and exterior renovations, operational efficiencies, leasing risk, increasing undervalued rents, and the likelihood of higher leverage.

Note: Designations are defined independently by CrowdStreet. These designations may differ from the offering documents or common industry designations. For more details regarding the specific strategy and objective for a particular deal, reference offering documents.

Opportunistic

Project could require heavy redevelopment, full development, or repositioning to reach its highest potential value. Other situations include distress, major tenancy issues, or other risks requiring drastic intervention from a new sponsor.

Development

Development is considered a subset of opportunistic real estate and has many moving pieces that cause these projects to be high on the risk profile. These risk factors can include pre-development risk (surveys, permitting, entitlement), vertical construction risk, arranging permanent financing, leasing, hiring property management, and so forth. 

Development deals also don't provide cash flow during the construction phase–only when the property is fully constructed and stabilized can it generate income. On the flip side, development projects often target higher targeted returns than other CRE projects.

 

Real Estate Investment Return Metrics

What is IRR (Internal Rate of Return) in Real Estate?

The Internal Rate of Return, or IRR, is one metric commonly used in financial analysis to evaluate and compare different investments. It represents the percentage rate earned over a defined period of time, calculated on the basis of cash flows. IRR differs from other metrics in that it accounts for the concept of the "time value of money", meaning it is calculated as the discount rate that makes the present value of all cash flows from an investment equal to zero. In more simple terms, it is the rate at which an investment grows or declines. In this sense, you can think of it as a time-sensitive compounded annual rate of return.

What is Equity Multiple as it Applies to Real Estate?

Equity multiple is a financial metric that measures the total return on an investment relative to the initial investment. It's calculated by dividing the total cash distributions received from the investment by the total equity invested. An equity multiple greater than 1.0x means the investor is getting back more cash than they invested, while an equity multiple less than 1.0x means the investor is getting back less cash than they invested. Equity multiple is typically another key metric for investors to evaluate and compare investments.

 

Equity Multiple Formula

The formula to use to calculate Equity Multiple

Equity Multiple = Total Cash Distributions / Total Equity Invested

Additional Information on Investor Return Metrics

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Sponsor Details

Sponsor Designation

CrowdStreet categorizes sponsors based on their experience and track record so our investors can get a sense of the firm behind the deal.

Enterprise
FIRM AGE15+ YEARS
LEADERSHIP EXPERIENCE30+ YEARS
PORTFOLIO VALUE$5 B +
  National Platform
  Ranked in the top 250 for estimated value of total holdings per Real Capital Analytics
Tenured
FIRM AGE10+ YEARS
LEADERSHIP EXPERIENCE20+ YEARS
PORTFOLIO VALUE$500 MM +
 Leadership has invested together over multiple cycles
 Dedicated investor relations and accounting staff
Seasoned
FIRM AGE5+ YEARS
LEADERSHIP EXPERIENCE10+ YEARS
PORTFOLIO VALUE$100 MM +
 Network of repeat investors
 Established banking relationships
 Affiliations with national industry associations ULI, NAOIP, CCIM, SIOR or IREM
Emerging
FIRM AGE< 5 YEARS
LEADERSHIP EXPERIENCE2-5 YEARS
PORTFOLIO VALUE< $100 MM +
 Strong leadership experience
 Experience in the proposed asset class and geographic market
 Experience in managing individual investors

Read more about the Sponsors on the Marketplace

Private equity real estate - capital stack priority
Sponsor Equity
$1,161,311.00
Investor Equity
$10,451,801 29.54730417838272%
Senior Loan Amount
$23,760,000 67.16966265224275%
Total
$35,373,112 100%

On the CrowdStreet platform, offerings are treated pari-passu.

Current Investment Opportunities

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Additional Resources for Student Housing Real Estate Investors

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