An Apartminium Development by Metonic & Apogee
Congratulations on your investment with Metonic. The construction of Vestara 72 is underway and on schedule. The 3rd party market data supports the Apartminium as a solution to the housing shortage that challenges submarkets like Papillion. Metonic is thrilled to provide a fresh lane of housing for consumers that will drive a special result for investors.
We are especially proud of the Metonic and Apogee teams diligence through the pre-construction process. The Apogee team tirelessly worked to value engineer and improve the project to limit the impacts of inflationary pricing. The Metonic finance team has also worked hard to modify the debt structure in order to combat potential interest rate increases and reduce risk around the future refinance. The finance team was able to hold a below-market interest rate on the construction loan while extending the term of the construction loan to 5 years, allowing the refinance to occur later in the hold period if necessary. We have also elected to reduce the LTV on the project to 70%, further reducing the risk on the overall project. Metonic has agreed to provide any additional equity required as a result of the reduced debt.
Thanks to the work of Apogee and Metonic to value engineer the project and optimize the debt structure, projections for Vestara 72 have improved since we launched the investment opportunity. Our entire team is ready to build and looks forward to keeping you updated on the progress.
Diligence for the Vestara 72 development has paid off with better results than anticipated:
Below Market Interest Rate
for up to 5 years
Stabilized Market Appraisal
Exceeding Rent Expectations
as per the market study
Build to Stabilized Cap Rate
approximately 6.5% construction cap rate
The housing shortage in the Papillion submarket is not letting up. As of June 2022, only 41 rental homes were available in Papillion.
Papillion Rental Occupancy
Avg. Single Family Home Price
up 13% over the past 12 mo.
Single Family Home Mortgage Rates
Renters in the Submarket
pay 26% of their income to rent
are over 50% lower than this time last year
As a result of increased market demand, we have chosen to strengthen the amenity set and Apartminium finishes. The finishes feature high-end quartz countertops, stainless steel appliances, and luxury LTV flooring throughout with plush carpeting in bedrooms.
Amenity enhancements include:
- Co-working, gaming, and an updated fitness studio/equipment to the clubhouse.
- EV Chargers – 10% of garages will have EV charging readiness along with multiple community EV charging stations.