Starlight U.S. Residential Fund

 

Investment Highlights

Starlight U.S. Residential Fund was established in September 2021 to indirectly acquire, own and operate a portfolio of multi-family properties and single-family rental homes that demonstrate value based on pricing and local supply and demand trends to achieve the Fund’s target metrics and are located primarily in Arizona, California, Colorado, Florida, Georgia, Idaho, Nevada, North Carolina, Oregon, South Carolina, Tennessee, Texas, Utah and Washington.

Strategy

The Fund’s strategy is focused on achieving significant increases in rental rates as a result of undertaking high return, value-add capital expenditures to rental suites, clubhouses and amenities in targeted geographic locations experiencing compelling population growth, employment growth and lifestyle preferences. The Fund's strategy also includes active asset management utilizing reputable best-in-class U.S.-based property managers to implement net operating income growth by maximizing rental rates and ancillary revenue opportunities with rigorous operational controls to manage and reduce costs.

The Fund has a 3-year investment horizon, with two one-year extensions available. 

Active Asset Management
  • Active, continuous revenue management
  • Reduce operating expenses
  • Renovate suites and common areas in multi-family properties and deferred maintenance and targeted renovations in single family homes to attract rental premiums
  • Identify ancillary revenue opportunities
Target Markets
  • United States Major markets with +1M populations (Arizona, California, Colorado, Florida, Georgia, Idaho, Nevada, North Carolina, Oregon, South Carolina, Tennessee, Texas, Utah and Washington)
  • Suburban sub-markets with strong long-term job, population and economic growth
  • Strategically located within respective suburban submarkets with barriers to new development or limited supply
Target Assets

Multi-Family

  • Garden- and wrap-style, Class "A", institutional quality multi-family properties
  • Resort amenities
  • Built in 1990 or newer with no less than 200 suites

Single Family

  • Built in 1970 or newer
Active Asset Management
  • Complete value-add capital expenditures to suites, clubhouses and amenities at multi-family properties and to attract rental premiums
  • Increase revenue through rental maximization
  • Revenue enhancement through ancillary income opportunities
  • Best-in-class property management
Stable Monthly Cash Distributions

The primary objective of the Fund is to generate stable monthly cash distributions for its unitholders and to enhance the value of its assets through active management prior to disposition. The Fund offers across all unit classes an annual, pre-tax distribution target yield of 4% and targets a minimum 11% pre-tax, investor internal rate of return upon disposition of the properties. Canadian dollar distributions are hedged.

EXPECTED LISTING DATE: NOVEMBER 15, 2021

BOARD OF DIRECTORS AND AUDIT COMMITTEE:
  • Daniel Drimmer
  • Harry Rosenbaum, Lead director (Independent)
  • Kelly Smith (Independent)

EXECUTIVE OFFICERS:
  • Daniel Drimmer, Chief Executive Officer
  • Evan Kirsh, President
  • Martin Liddell, Chief Financial Officer
  • David Hanick, Corporate Secretary

UNIT CLASSES
  • Class A: Canadian dollar, to be TSX Venture Exchange listed
  • Class C: Canadian dollar unlisted
  • Class D: Canadian dollar unlisted
  • Class E: U.S. dollar unlisted
  • Class F: Canadian dollar unlisted
  • Class G: U.S. dollar unlisted
  • Class I: Canadian dollar unlisted, Institutional Class
  • Class U: U.S. dollar, to be TSX Venture Exchange listed
The Fund’s limited partnership tax factors (T5013 and RL15) relating to each fiscal year are available on the CDS Innovations Inc. website.

For more information or assistance, contact Starlight U.S. Multi-Family at info@starlightus.com.