The Benton: Class-A Multifamily Near Walmart HQ
Deal Overview
Total Raise
$8.5M
Minimum Investment
$100K
Hold Period
5-7 Years
LP IRR
19%-22%
Return on Equity
1.9x
The Benton is a strategically positioned 150-unit multifamily housing complex located less than 10 minutes from the new Walmart Corporate headquarters in Northwest Arkansas. This investment opportunity capitalizes on the region's strong economic growth and high demand for quality housing.
Executive Summary
The Benton is a 150-unit, Class A, new construction multifamily development located in Pea Ridge, Arkansas, minutes away from the new Walmart headquarters. This stabilized asset boasts attractive projected returns with full COO secured prior to close.
Key Investment Features:
- Location: 200 Ryan Road, Pea Ridge, AR 72751
- Units: 150 (75 one-bed/one-bath, 75 two-bed/two-bath)
- Construction: 2024, Wood-frame
- Current Occupancy: 20%
Investment Strategy: Acquire the property in late 2024, implement a comprehensive lease-up program, and stabilize the asset by 2026, enhancing its value and generating strong returns for investors.
Meet the Team
HPP Equity focuses on identifying and capitalizing on real estate opportunities in single-family homes and mid-size apartment communities within carefully selected markets. Through acquisition, redevelopment, or stabilization, we strive to maximize profitability.
For stable properties, we enhance income through capital improvements, optimized management, and greater efficiency. In development projects, our local rezoning expertise unlocks the potential of underutilized properties.
Our mission is to build thriving communities while providing strong, consistent returns for our investors.
HPP Equity Background
HPP Equity ("HPP") is a regional investment management firm specializing in acquiring and optimizing strategic real estate assets. Since 2019, HPP has created opportunities in Single Family Rentals (SFR), Student Housing, and Multi-Family portfolios.
HPP oversees $150M in assets under management (AUM) and partners with specialized property managers to provide comprehensive performance oversight. Our assets include nearly 1,000 student beds, 450 SFR/Multi-Family units in Indiana, and 195 units near the University of Arkansas. We continue to pursue acquisitions in high-growth regions like Fayetteville and Bentonville, Arkansas.
With over $80M in debt financing sourced and $25M in capital deployed, HPP leverages a broad capital stack. We aim to achieve $250M in AUM and $26M in annual rental revenue by 2026.
Justin Kain
CEO and Founder
Justin oversees financing, investor relations, business development, and management of a diversified single-family rental (SFR) and student housing portfolio near Notre Dame in South Bend, Indiana, and Northwest Arkansas. After beginning his career as a teacher, Justin transitioned into real estate in 2006, co-founding Over the Rainbow Enterprises and raising private capital for deals by 2008. He has since established multiple ventures, including Smart Guys LLC, Arkad Properties LLC, and HPP Equity, where he has managed over $9 million in SFR renovations, raised millions in equity for property acquisitions, and expanded his portfolio across various markets.
Nathan Kain
CIO and Co-Founder
Nathan directs value-add construction and asset management for a diverse portfolio of Single Family Rental (SFR), multi-family, and student housing properties near Notre Dame in South Bend, Indiana, and Northwest Arkansas. With a Construction Science and Management degree from Clemson University and extensive hands-on experience, Nathan co-founded Smart Guys LLC in 2009, acquiring and renovating nearly 120 properties. He later served as President of HomeWorks Construction, driving annual revenue beyond $6 million. Since 2021, Nathan has overseen acquisitions exceeding $80 million AUM at HPP Equity, leveraging his operational expertise to fuel the company's growth.
Ben Bowerman
Vice President of Capital Markets
Ben leads investor relations and strategic growth initiatives, leveraging detailed research and expertise in structuring debt and capital to expand the company's diversified single-family rental (SFR) and multi-family student housing portfolio near Notre Dame in South Bend, Indiana, and Northwest Arkansas. With a background spanning finance, lending, and property management, Ben has originated over $100 million in loans and worked extensively in community service and development. Since joining HPP Equity in 2023, he has contributed to its growth through roles in accounting, property management, and acquisitions, driving the company's success through strategic opportunities.
Alex Linden
Vice President of Acquisitions
Alex plays a key role in expanding the company's single-family rental (SFR) and multi-family student housing portfolio near Notre Dame in South Bend, Indiana, and Northwest Arkansas. Joining the team in 2023, Alex leads acquisition efforts, including market research, broker relations, and proforma development. With over a decade of experience in property management and acquisitions, he previously helped grow a portfolio from 80 to 350 units and honed his skills in commercial property management at Holladay Properties. Passionate about real estate and helping others, Alex continues to drive growth and innovation at HPP Equity.
Justin Frey
Vice President of Market Development
Justin drives growth by conducting market research, building community relationships, and contributing to acquisition strategies and proformas. Since joining HPP Equity in 2022, he has helped expand the company's single-family rental (SFR) and multi-family student housing portfolio near Notre Dame in South Bend, Indiana. With a background in real estate investment, property management, and acquisitions, Justin's passion for real estate began early, inspired by his mother's career as a realtor. He holds a Bachelor's degree in Criminal Justice and a Real Estate Broker's License, bringing hands-on expertise to HPP Equity's development initiatives.
Track Record
HPP Equity has a proven track record of success in real estate acquisition, development, and management. Here are some of our completed and current projects:
SB191 Holdings LLC: Purchased in January 2019 for $10.5M with a $1.4M CapEx budget. Projected portfolio valuation of $15M by 2027. Full LP Capital of $2.5M returned in October 2020. Refinanced in July 2022 with $1M distributed to members.
IG Holdings LLC (4 Entities): 2022 acquisition of 640 beds for $30M. $9.5M LP Capital and $28M in debt. $6M capital improvements budget. T12 Revenue: $4.4M, T12 NOI: $1.9M. 2025 Projected Revenue: $6.8M, 2025 Projected NOI: $3.4M. Estimated portfolio value of $60M at a 5.5 Cap or $90k per bed.
SB201 Holdings LLC: Purchased for $6.1M on 9/30/2020 with a $550k CapEx budget. Raised $1.9M for down payment and improvements. Properties appreciated 64% by March 2023 and sold to SB231 Holdings LLC for $7.5M. Original investors now hold over 15% equity in SB231 Holdings LLC.
Deal Overview
- Purchase Agreement: Fully executed PSA for $24.80M with $250,000 earnest money, closing scheduled for mid-January 2025.
- Lease-Up Strategy: Partnered with Lund Management to achieve full stabilization within 18 months.
- Market Advantage:
- Superior location near Walmart HQ, Fortune 500 companies, and thriving local amenities.
- Significant rent growth potential due to strong demand and limited supply in NWA.
- Economic Drivers: Rapid growth fueled by Walmart, JB Hunt, Tyson Foods, and the University of Arkansas.
Why Northwest Arkansas?
- High Growth Market: NWA is expected to enter the top 100 MSAs, driving natural rent increases. NWA was the 18th fastest-growing metro in the U.S. in 2023, with a population increase of 2.3% from 2022 to 2023.
- Milken Institute: NWA has ranked in the top 10 Best-Performing Cities in the Milken Institute's annual list for three years in a row, most recently at number 7 in 2024. The institute attributes NWA's success to strong job growth, high-tech GDP growth, and affordable housing.
- Venture capital investments: The region has seen record-high venture capital investments. Fast Company named NWA number 2 in its top 10 metro areas for minority entrepreneurs.
- Vacancy rates: Vacancy rates in all property sectors across the region are below 10 percent (Fayetteville just hit a record-low commercial vacancy rate of 5.6 percent. This can be compared to regional neighbors Austin, Dallas, and Houston, which have commercial vacancy rates greater than 20 percent).
- Replication of Proven Success: The Principals’ experience managing 1,600+ units in Indiana sets the stage for scaling in this expanding market.
- Strategic Expansion: The Benton follows the success of Ruby on the Creek, further solidifying a foothold in NWA.
Property Details
- 150-unit complex within minutes of the Walmart Corporate Office, downtown Bentonville square, Crystal Bridges, and many other excellent community amenities.
- Fully pre-stabilized new construction project with full COO before closing.
- $24.80M Purchase Price
- 20% occupancy prior to close with potential for $3.0M in leases at stabilization.
Deal Structure
- Debt: $18.8M @ 69% LTC
- Limited Partner Capital: $8.5M
- Limited Partner Equity Share: 50%
- Preferred Return: 8% annually for Limited Partners, beginning in month 13.
- Distributions: All available distributable cash will be disbursed to Limited Partners prior to any disbursement to the General Partner.
Financial Projections
Pro-Forma Acquisition
| Current YR1 | Stabilized | |
|---|---|---|
| Gross Potential Rent | $2,261,280 | $2,722,160 |
| Effective Gross Income | $1,377,071 | $2,957,285 |
| Total Operating Expenses | $1,012,255 | $1,082,963 |
| Net Operating Income | $364,817 | $1,874,322 |
Returns Analysis (5-Year Projection)
LP IRR: 19.19%
LP Total Cash Flow: $15,693,370
LP Equity Multiple: 1.89x
Exit Cap Rate: 5.5%
Sources and Uses
| Sources | Amount |
|---|---|
| Debt | $18,500,000 |
| Equity | $8,500,000 |
| Total Sources | $27,000,000 |
| Uses | Amount |
|---|---|
| Purchase Price | $24,800,000 |
| Renovation Budget | $50,000 |
| Appraisal | $50,000 |
| PCA/Phase I | $4,600 |
| Lender Legal | $75,000 |
| Borrower Legal | $40,000 |
| Survey | $10,000 |
| Title | $40,000 |
| Lender Fee | $190,000 |
| Acquisition Fee | $496,000 |
| Lender Sourcing Fee | $132,000 |
| LP Equity Sourcing Fee | $167,000 |
| Capital Reserve | $945,400 |
| Total Uses | $27,000,000 |
Exit Strategy
Refinancing Strategy: We aim to refinance 100% of the initial capital within 2-3 years, with the goal of appraising the complex at $34.0M and securing a loan of around $27.5M. Anticipated NOI of $1.9M or greater, with a project valuation of $34M based on a 5.5% (New Construction) cap rate.
Return of Capital Schedule:
- 2026 - 2027: 8% Preferred return payments begin 1st quarter once occupancy hits 80%, with full principal paydown occurring in the year 3 refinance.
- Post Refi (Starting early to mid Q3 of 2027): Continued distributions based on cash flow of the property after return of all investor capital and initiation of a HUD Loan.
Invest in The Benton: Class-A Multifamily Near Walmart HQ
Total raise
$8.5M
Min Investment
$100K
Hold time
5-7 Years
LP IRR
19%-22%
Return on equity
1.9x
↓ More details available to qualified investors ↓
Similar Investment Opportunities
Explore more premium deals in our curated collection
Flagship Vineyard Resort in Paso Robles: Sona Hills
$30M committed
A flagship 56-key luxury boutique vineyard resort under development in Paso Robles, CA. Spanning 220 acres, the project includes villas (fractional), suites, restaurants, tasting room, wine making facility, spa & wellness center, event spaces, and more. Investors benefit from a compelling returns...
Total raise
$30M
Min Investment
$250K
Hold time
10 Years
LP IRR
32.73%
Return on equity
3.0 x
Stabilized Multifamily in Naples, FL with Conversion Upside
$0 committed
Jade at Olde Naples is a 104-unit multifamily community in Naples, FL, offering a stabilized investment opportunity with upside potential. This well-maintained property is located in Naples, FL, ranked #1 for the 2024-2025 best places to live by US News and World Report and benefits from high bar...
Total raise
$8.55M
Min Investment
$100K
Hold time
3-5 Years
LP IRR
22.2%
Horizon Apartments: Cashflowing Multifamily in San Antonio
$6.6M committed
Horizon Apartments is a 204-unit multifamily community in San Antonio, TX. This cashflowing asset presents an opportunity for accredited investors to participate in a value-add strategy targeting an 18% IRR and 2.1x equity multiple.
...Total raise
$6.6M
Min Investment
$50K
Hold time
5 Years
LP IRR
18%
Return on equity
2.1 x
Stable Government-Leased Office Investment in Harrisburg, PA
$3.8M committed
This property is a single-tenant office building in Harrisburg, PA serving as the main office for Dauphin County Children and Youth.
...Total raise
$3.8M
Min Investment
$50K
Hold time
5 Years
LP IRR
20.25%
Return on equity
2.2 x
Liminal: Louisville's Premier Adaptive Reuse Opportunity
$5.75M committed
Liminal is a transformative attainable housing investment opportunity that will revitalize a historic landmark into a mixed-use development in Louisville's burgeoning Portland neighborhood. This adaptive re-use project will convert a 137,000 SF riverfront warehouse into 138 workforce apartments ...
Total raise
$5.75M
Min Investment
$50K
Hold time
6.5 Years
LP IRR
21.2%
Return on equity
3.0 x
Green Bay's NOVA: Class-A Multifamily with 20.1% Target LP IRR
$1M committed
NOVA is a new 8-story, Class A, mixed-use multifamily development located at 221 Cherry Street in Green Bay, Wisconsin. The project features 268 units with an average size of 802 SF, approximately 5,000 SF of commercial space, and offers a unique opportunity in the growing Green Bay market.
...Total raise
$12.8M
Min Investment
$87.08K
Hold time
5 Years
LP IRR
20.1%
Return on equity
2.7 x
Onicx Healthcare Real Estate Fund: Capitalizing on the Growing Demand for Medical Real Estate
$50M committed
The fund will be investing in outpatient medical assets with value-add acquisitions and ground-up developments primarily in the Southeast. Onicx is vertically integrated with its own construction and property management teams and has over 20 years of track record in the space.
...Total raise
$50M
Min Investment
$100K
Hold time
3-5 Years
LP IRR
15%-19%
Get Notified About New Deals
Leave your email below and we'll notify you when new deals are added.