Goodegg Growth Fund I

Goodegg Growth Fund I Investment Opportunity

Note: Investments will be taken on a first-funded basis.
Welcome
Hello there! On behalf of the entire Goodegg Investments team, we’re glad you’re here, and we’re excited to share with you our latest investment opportunity – Goodegg Growth Fund I.
Goodegg Growth Fund I is your opportunity to invest alongside us in Encore Metro at Millenia – a 215-unit class A multifamily asset completed in 2021 and located in one of the best submarkets in Orlando, Florida.
Goodegg Growth Fund I is open to all investors – whether you’re accredited or not – with a minimum investment of $10,000.
The goal for Goodegg Growth Fund I is to provide you a strong and recession-resilient investment in a stellar multifamily asset in a prime location. 

 
Are you stuck? Here's a video walkthrough of the portal and investment process.
 

The Opportunity
Goodegg Growth Fund I gives you the opportunity to invest in a brand new class A asset in a key growth market with significant opportunity to add value throughout the life of the project.
 Click here to listen in to the Goodegg Growth Fund I investor webinar. 
✅$268 Rent Premiums
Rents are currently $268 below market, and we plan to capture that rent premium gap within 18 months after acquisition. Further, because concessions are no longer being offered, we expect a dramatic decline in outstanding concessions. 
✅Low Cost Per Door
We are purchasing the asset at $266,000 per door, significantly below older vintage properties less than 3.5 miles away, which are trading at $286,000 per door, meaning we are purchasing the asset at a 7% discount. 
✅Low Fixed-Rate Debt
We plan to assume the in-place HUD loan, which has a balance of approximately $33.6M, a 40-year amortization schedule, and a fixed interest rate of 3.8% – terms that are much more favorable than what’s available in today’s market.
✅Strong Appraisal
This asset sailed through our strict due diligence process with flying colors and received a strong 3rd party appraisal at $4.85M above purchase price, which means we’re going in with tremendous built-in value from the get-go. 

Investment Snapshot & Projected Returns
Goodegg Growth Fund I is open to all investors, with the following projected returns:
 




 


Goodegg Growth Fund I




Minimum


$10,000




Preferred Return


7%




LP / GP Split


70 / 30*




Equity Multiple


1.7x - 1.9x




Distributions


Quarterly




*Up to 13% IRR, then 50 / 50 thereafter

Why We Love This Asset
This deal is unlike anything we’ve seen in the current market. Here are some things we love about Encore Metro at Millenia:
✅ The fact that this is a completely off-market acquisition
✅ We are assuming in-place fixed-rate debt at 3.8% 
✅ We are purchasing this asset directly from the developer (meaning no competition and thus getting a fantastic price on the asset)
✅ This asset is a new build (completed in 2021), so it has none of the risks of older properties
✅ The appraisal came in $4.85M above our purchase price, which means instant equity
✅ We have the opportunity to capture a $268 gap between in-place and market rents
✅ The property experienced rapid lease-up to stabilization within 9 months, which demonstrates the strong demand in this burgeoning submarket

Why Orlando
With a lower cost of living and a friendly tax-climate for individuals and businesses, Orlando is a top migration destination. In 2022, Orlando’s growth rate was the 2nd fastest of the top 30 largest U.S. cities – 4x the overall U.S. growth rate. 
It is predicted that Orlando will see a 19% increase in jobs by 2030. Rent growth in the Millenia submarket is up 8.1% over the trailing 12-month period and remains ahead of the market average of 5.7%. 

Strong Track Record Of Success
At Goodegg Investments, we’re extremely proud of our strong track record and our commitment to maintaining the highest standards when it comes to managing the assets in our portfolio.
Over the last 5 years, we’ve completed 40 commercial real estate syndications across over 8,000 multifamily units valued at $1.3B+. Further, we’ve successfully exited 20 of those deals while delivering exceptional returns to our investors.
To learn more about the assets in our overall portfolio, visit the Portfolio page on our website.

 Goodegg Gives – Meaningful Impact Through Your Investment
In addition to giving you a great opportunity to protect and grow your capital, Goodegg Growth Fund I will also help you to create meaningful impact in local communities and around the world.
When you invest in Goodegg Growth Fund I, you’re contributing to Goodegg Gives – a program where we donate a portion of our proceeds to support worthy causes around the world – all without any impact to your investment returns.
To date, Goodegg Gives has donated over $55,000 to support nonprofits in the areas of:

Fighting human trafficking
Supporting women, children, and families
Cultivating financial literacy
Advancing equity, creativity, and entrepreneurship


FAQs
How does Goodegg Growth Fund I compare to other investment offerings?
The general investment structure for each investor is very similar to that of our current and previous offerings. As an investor, you can expect to receive a preferred return plus a percentage share of cash flow going forward for the overall fund.
The main distinction is that, unlike previous funds, Goodegg Growth Fund I is open to all investors – whether you’re accredited or not – at a minimum investment of $10,000. This structure allows as many people as possible to participate in and benefit from this opportunity.
Please also note that the projected returns for Goodegg Growth Fund I are identical to the Class B returns for Goodegg Wealth Fund II (which is only open to accredited investors at a $50k minimum).
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Who will be the interested buyer(s) for asset after the hold period?
As with our prior investments, there are two types of buyers who will be attracted to Encore Metro at Millenia after the hold period and once we execute on the business plan – (1) other private syndication groups like ours and (2) institutional buyers. 
Having multiple exit strategies and multiple potential buyer groups in mind from the start of the project means that we know exactly what our end goal is and thus can execute on the business plan efficiently. Further, it gives us maximum flexibility while minimizing risk. 
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What type of financing are we getting on Goodegg Growth Fund I?
We will be assuming the in-place HUD loan direct from the developer. This loan comes with a 40-year amortization schedule and a low fixed rate of just 3.8%, which provides additional risk mitigation for your investment.
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How confident are you that you’ll be able to execute on the business plan?
We are extremely confident in the value-add potential of Encore Metro at Millenia. All aspects of the business plan are strategies we’ve successfully implemented at other properties within our portfolio, and we are confident we’ll be able to successfully execute on them at this property as well.
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Is this investment eligible for 1031 exchange?
No. This investment is not set up to take funds from a 1031 exchange. 
 If you are considering selling your property, it might help to know that, with the high year 1 depreciation, the tax shelter you could get from selling a property outright and investing those funds into an opportunity like this one could be comparable to the tax benefits you’d get via a 1031 exchange. 
Of course, we highly recommend you consult your own CPA to discuss your specific situation. 
All that being said, if you are currently in the middle of a 1031 exchange and looking to place your funds, please let us know, and we can help point you in the right direction.
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What is the expected depreciation on this deal?
While we don’t yet have the exact depreciation numbers yet, we do plan to do a cost segregation study shortly after acquisition, and we anticipate significant year 1 losses. We will share those numbers as soon as we can upon closing of the asset.
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Will distributions take place on a monthly or quarterly basis, and when will they start?
Distributions will be quarterly and will begin only after the closing of the fund. More specifics around timing will be shared once the fund closes.
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What type of communication will take place with investors throughout this investment?
As soon as your investment is approved, you'll receive confirmation of your investment. 
We will keep you in the loop as we identify and move through the acquisition process for each asset in the fund.
 Once we close on each asset, you’ll hear from us immediately. We will continue to communicate with each subsequent closing within the fund. 
After the fund closes, you can expect to receive monthly updates from us, along with quarterly financials for all assets held within the fund.

Ready To Invest?
Thank you again for your time in reviewing this opportunity and your consideration for investing alongside us in Goodegg Growth Fund I. 
If you're ready to invest, go ahead and click the "Invest Now" button to get the process started. 
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We look forward to a very fruitful, impactful, and sunny-side-up partnership together!
Note: Investments will be taken on a first-funded basis.
Are you stuck? Here's a video walkthrough of the portal and investment process.