Breneman Capital

Acquisition Recap: Fairhaven Court located in Madison, WI Highlights: Purchase Price: $9,200,000 Acquisition Date: 10/30/2024 Size: 58 Units Untrended Stabilized YOC: 6.74% Debt (Freddie Mac SBL): 61.2% LTV / 5.21% Fixed Interest Rate Why this Investment? Back in Madison: Several members of the Breneman Capital investment team are alumni of the University of Wisconsin-Madison and have extensive knowledge of and deep-rooted connections within the Madison market. This acquisition reestablishes Breneman Capital’s footprint in the Madison multifamily market, where the firm’s founder, Drew Breneman, bought his first four properties almost twenty years ago as an undergraduate student. Impressive Market Fundamentals: Madison demonstrates ideal fundamentals for investment with some of the strongest occupancy and rent growth in the nation. With minimal new supply in the pipeline, the market has great runway potential for sustained growth. Basis: At $158,621 per unit and $162 per square foot, we are acquiring the property at an attractive basis relative to comparable trades in the market and immediate positive cash flow. Demonstrable Upside: The 12 most recent leases signed at the property have commanded an average premium of 15.7% relative to existing rents, which is a testament to the strength of the Madison multifamily market. Our strategy contemplates the continued marking of in-place rents to market. High-Quality Property: Consisting of a townhome building and an apartment building built in 2007 and 2014, respectively, Fairhaven Court offers sought-after amenities (including in-unit laundry, large floorplans, balconies, and a below-grade parking garage) while still being an affordable option for renters in comparison to brand new construction product. Strong Location: The property is just a 5-minute drive to Downtown Verona, home of one of the Madison MSA’s major employers Epic Systems (~13,000 employees), and a 20-minute drive to Downtown Madison. Fairhaven Court’s location is highly desirable for suburban residents given its proximity to top employment options and urban amenities. We are extremely thrilled to have identified and closed such a strong opportunity for our investors, and we are eager to continue building our presence in the State of Wisconsin. For more details, view our portfolio at: https://lnkd.in/gjmCNQmT Disclaimer: This is not an offer to sell or a solicitation to buy securities. Past performance is no guarantee of future results, and investors may experience different results than those shown, including the loss of principal. You should not rely upon forward-looking statements as predictions of future events.

Phoenix Leads the Build-to-Rent Craze, Transforming the Sunbelt Rental Landscape The build-to-rent (BTR) sector is booming nationwide, and Phoenix is at the forefront, with a staggering 9,345 BTR units completed in the past five years, more than any other metro area in the U.S. Why It Matters: Traditionally known for its affordable homes, Phoenix faces an affordable housing shortage. New homes and luxury apartments are aimed at wealthy renters-by-choice and buyers. Home prices have soared in the valley, making homeownership even more difficult for many. Built-to-rent communities provide a middle ground by offering spacious homes with modern amenities and no mortgage, appealing to everyone from empty nesters to families priced out of the home-buying market. The Bigger Picture: The Sunbelt region is seeing an unprecedented rise in BTR homes, with other cities like Dallas, Atlanta, and Houston following closely behind. These developments provide much-needed housing inventory as traditional single-family home sales stagnate due to affordability challenges. Key Takeaways: Affordability: In many markets, renting is now up to $1,000 less per month than owning BTR by the Numbers: In Phoenix alone, over 7,200 BTR units are currently under construction to meet the ongoing demand. Sunbelt Growth: Cities like Phoenix's developer-friendly nature, combined with rapid population growth, make the Sunbelt a hotspot for future rental housing growth. Read the full article on Axios: https://lnkd.in/gTf3hXQE #RealEstate #SunbeltGrowth #BuildToRent #PhoenixMarket #MultifamilyInvesting #HousingCrisis #BrenemanCapital

This summer, our Founder and CEO, Drew Breneman, shared his expert insights on the massive $7 billion redevelopment plan surrounding the United Center, dubbed the 1901 Project. This transformational 55-acre project is poised to reshape the West Loop and surrounding neighborhoods. Drew’s thoughts on the development: “It’s going to be good for neighborhoods in all directions from the United Center … If you look around there, it’s a dense part of the city, but it’s just parking lots and relatively low-density housing, so it’s going to improve the area a lot." The redevelopment represents a generational opportunity for real estate investors, especially as neighborhoods like Fulton Market continue to experience exponential growth. With the Chicago Bulls and Blackhawks seasons kicking off, the buzz surrounding the 1901 Project is more relevant than ever. Read more on our website: https://lnkd.in/dHiY5UYu #RealEstate #ChicagoDevelopment #1901Project #MultifamilyInvesting #WestLoop #UrbanDevelopment #BrenemanCapital #InvestmentOpportunities #ChicagoBulls #ChicagoBlackhawks #TBT

Acquisition Recap: The Lawrence, Lincoln Square, Chicago The Lawrence is a 25-unit mixed-use investment property in Chicago’s thriving Lincoln Square neighborhood. 🔑 Key Highlights: Purchase Price: $7,100,000 Acquisition Date: 8/30/2024 Property Type: Mixed-Use (24 residential units + 1 retail space) Why this Investment? The Lawrence was acquired while subject to a pending foreclosure action, allowing us to secure the property at an attractive price point. Current rents are below market rates, so increasing rents to market rates as leases expire will further increase cash flow and the property's value. Built in 2018, it offers modern amenities like quartz countertops, stainless steel appliances, in-unit laundry, a rooftop deck, and on-site parking. The property is just 0.6 miles from the Western Brown Line CTA Station, making it highly desirable for urban residents. With a strong demographic profile—the average household income within a 1-mile radius is nearly $117,000—this investment presents multiple value-add opportunities, particularly in leasing the retail space and bringing rents to market levels. For more details, view our portfolio at: https://lnkd.in/dneNJFme #RealEstateInvesting #Multifamily #ChicagoRealEstate #ValueAddStrategy #BrenemanCapital #InvestmentStrategy

The Midwest is rapidly gaining traction in the multifamily market, with demand outpacing supply—especially in Madison, WI, one of the top U.S. markets for absorbing new units faster than developers can build them. 🔑 Key Midwest Highlights: - Strong labor market & affordable living costs - Leading the nation in rent growth & economic resilience - Limited new construction creating higher occupancy rates - Highest average cap rates of any region in the country 📖 Read the full article on Yield Pro to learn more: [https://lnkd.in/d4H7KXKn] #RealEstateInvesting #MidwestGrowth #MultifamilyInvesting #MadisonWI #InvestmentStrategy #YieldPro #BrenemanCapital #CapRates #EconomicGrowth

Fairhaven Court Fully Subscribed We're excited to announce that our 58-unit multifamily property, Fairhaven Court in Madison, WI, is fully subscribed! This was the perfect opportunity for many investors: ✅ Immediate cash flow with significant upside potential ✅ 5.21% fixed-rate loan offering strong downside protection. ✅ High-quality construction in a fast-growing market. ✅ A+ location in Madison, with strong demand for multifamily housing. If you missed out, don’t worry! We’ve opened a waitlist. Join now, and you’ll be among the first to know if a spot opens. https://lnkd.in/guwa3HjM #RealEstateInvesting #Multifamily #InvestmentOpportunities #BrenemanCapital #MadisonInvesting #Fairhaven

We are proud to celebrate Tom Stein's 5th anniversary with Breneman Capital! Tom’s journey with us started in 2015 when he sent a bold email asking for a job while still a junior at UW-Madison. After bringing him on as an intern, Tom quickly proved himself. Now, five years later, he’s leading our investor relations and playing a pivotal role in our success. If you're interested in exploring investment opportunities with us, now is a great time to connect—Tom would love to hear from you! #WorkAnniversary #BrenemanCapital #InvestorRelations

How the Fed's Latest Rate Cuts Could Impact Multifamily Investments and Development The Federal Reserve's recent 50 basis point rate cut has sparked discussions across the real estate sector. For multifamily investors and developers, the reduction brings a mixed bag of opportunities and challenges. Here are some key takeaways: - Lower interest rates could reduce borrowing costs, particularly for value-add and core-plus properties. - Cap rates typically take 6 to 9 months to adjust, creating a window for investors to lock in better yields. - Rising construction and labor costs still pose challenges for developers, and more rate cuts may be needed to significantly shift market dynamics. - Refinancing could become easier for multifamily owners as borrowing costs decrease, especially with large amounts of debt maturing by 2025. While the recent rate cut is a step in the right direction, the full impact will take time to materialize. Read the full analysis and learn how to position your multifamily investments in this evolving environment. Reach out to our team for a strategy session. https://lnkd.in/gfyRB3XP #InterestRates #MultifamilyInvesting #CapRates #RealEstate #Fed #EconomicOutlook #InvestmentStrategy #BrenemanCapital

Our CEO, Drew Breneman, has created a free 5-day email mini-course to help investors navigate the world of passive real estate and achieve strong, steady returns while minimizing tax liabilities. 📚 What the course covers: - Key strategies for generating consistent income from real estate - Proven tax-efficient approaches to maximize after-tax cash flow - Insights into building wealth through a diversified real estate portfolio Join the hundreds of investors who have already taken this course and are applying these strategies to their own investments. https://lnkd.in/dRKFCbjZ #RealEstateInvesting #PassiveIncome #WealthManagement #InvestmentStrategy #BrenemanCapital

We are pleased to announce Breneman Capital's latest acquisition in Chicago's Lincoln Square neighborhood. Our Founder and CEO, Drew Breneman, recently commented on the purchase of the distressed 25-unit property bought out of foreclosure: “We were drawn to this particular property since it checks all the boxes we typically look for: Well-located, high-quality construction and an immediate path to increase the value and cash flow quickly through leasing the vacant retail space and adjusting the apartment rents to market rates,” he said in a statement. This acquisition reflects Breneman Capital's strategy of identifying high-quality assets with strong value-add potential. The Lawrence property was listed for nearly $9 million but was acquired by Breneman Capital for just over $7 million. Read more about this acquisition at https://lnkd.in/g8djrwND #RealEstate #Chicago #Multifamily #InvestmentStrategy #BrenemanCapital #PropertyAcquisition