04 /

Investors

Silvergate has a strong track record of delivering superior risk-adjusted returns to our joint venture partners and investors. As a result, most of our investors are repeat clients investing with us across multiple projects. We always attempt to marry the right project with each investor’s individual investment goals and pride ourselves on structuring our investments to align our financial interests with those of our investors. We believe that wealth is created in real estate by maintaining conservative leverage and investing with a long-term perspective.

We have a strong pipeline of potential development opportunities and are eager to build new investor relationships with individuals and funds who wish to capitalize on the strong market fundamentals for rental housing in San Diego County. Please contact Ian Gill, James Reynolds, or Tommy Edmunds if you would like to discuss the opportunities further.

4.1.1 /

Plaza 1640

Project Capitalization
Equity: $6,152,499
Debt: $13,500,061

Project Costs
Total Project Cost: $19,652,560
Project Cost Per Unit: $255,228

Return on Cost
Stabilized ROC: 6.34%

Investment Period
Construction: 25 months
Lease-up: 5 months
Stabilized Operations: TBD
Total: 10+ years

Stabilized Value
Cap Rate: 4.25%
Value: $27,240,000
Value Per Unit: $309,545

Permanent Loan
Loan Amount: $18,350,000
Return of Capital1: $3,311,750
Remaining Equity: $2,840,749

Investor Returns
Cash-on-Cash2: 18.48%

1. 53.83% of original capital returned
2. Annual cash flow as a % of remaining equity

4.1.2 /

Breeze Hill

Project Capitalization
Equity: $5,315,000
Debt: $17,613,353

Project Costs
Total Project Cost: $22,928,353
Project Cost Per Unit: $260,549

Return on Cost
Stabilized ROC: 6.35%

Investment Period
Construction: 22 months
Lease-up: 6 months
Stabilized Operations: 1 month
Total: 29 Months

Stabilized Value
Cap Rate: 4.00%
Sale Price: $32,967,000
Sale Price Per Unit: $374,625

Deal Level Returns
Leveraged IRR: 20.91%
Equity Multiple: 2.32x