Granite Peak Capital

Ridgewood Terrace Apartments

Multifamily · Cedar Ridge, AL
3.5 /5

Solid suburban multifamily with experienced sponsor, but thin margin of safety on projections and no prior portfolio history.

1 source file ▾
Ridgewood Terrace Business Plan.pdf
Tap a metric to see details
Sponsor
4.0/5
Returns
3.2/5 *
Market
3.9/5
Structure
3.5/5 *
Risk
2.8/5
Insights
Bottom Line ▾

Ridgewood Terrace is a well-located value-add play in a strong Austin suburb. The sponsor shows operational depth and the submarket fundamentals support the thesis. Key concerns are the Y1 cash burn requiring a $600K reserve draw and the lack of prior LP relationship in Vyzer's database, balanced against a tight Austin-suburb supply pipeline and a complete operator team.

3 Strengths & 4 Weaknesses ▾
Strengths 3
Experienced operator with 1,200+ unit track record in Texas markets
Cedar Ridge submarket shows 97% occupancy and 6% YoY rent growth
Acquisition fee contributed back as LP equity — strong alignment signal
Weaknesses 4
Y1 negative net income requires $600K reserve draw — thin cushion
Single-asset concentration with no diversification
Interest rate sensitivity on floating rate bridge debt
No prior relationship with this sponsor in Vyzer portfolio database
5 Questions to Ask the Manager ▾
Confirm Form D filing for the SPV entity before wiring
Request trailing 12-month rent roll and occupancy data
Verify GP co-invest amount and alignment mechanism
Stress-test assumptions at 200bps rate increase scenario
Confirm construction budget is a fixed-price contract
Score Detail

Tap any parameter to see what it measures and why we scored it this way.

Sponsor & Team · 25% 4.0/5 ▾
4.0
Track Record Depth
i
4
Historical Performance
i
3
Team Depth
i
4
Operational Infrastructure
i
4
Regulatory Record
i
5
Returns Quality · 20% 6/7 disclosed 3.2/5 ▾
3.2
IRR vs Benchmark
i
3
MOIC
i
4
Cash-on-Cash / Pref
i
3
Revenue Growth Assumptions
i
3
Exit Assumption
i
3
Expense Assumptions
i
3
Downside / Stress IRR
i
N/A
Market Thesis · 20% 3.9/5 ▾
3.9
Demand Fundamentals
i
4
Supply Pipeline
i
4
Employment & Population
i
4
Macro Tailwind
i
4
Competitive Landscape
i
4
Barriers to Entry
i
4
Thesis Differentiation
i
3
Deal Structure · 20% 6/7 disclosed 3.5/5 ▾
3.5
Preferred Return
i
3
Waterfall Fairness
i
3
Fees
i
4
GP Co-Investment
i
4
LP Protections
i
N/A
Liquidity Terms
i
3
GP/LP Alignment
i
4
Risk Profile · 15% 2.8/5 ▾
2.8
Leverage / LTV
i
3
Debt Structure
i
2
Construction Risk
i
3
Regulatory Risk
i
4
Exit / Liquidity Risk
i
3
Interest Rate Sensitivity
i
2

2 parameter(s) not disclosed in the deal documents and excluded from scoring. Ask the GP to provide:

  • Downside / Stress IRR
  • LP Protections