I am not the expert that others are but my thoughts
- young sponsor never been through a downturn. short track record.
- 9% preferred is good, better than the standard 8%
-60/40 split after 16% IRR is not good, there are deals with better splits
- Generic value add play, invest in units....raise rents....sell at higher price due to increase NOI
- I dont like the short 2 year hold but some would love it
- I think the fees are high, but not unreasonable. I think they said they were paying for renovation so that would balance it out
- exit cap rate of 6.5 seems optimistic in an interest rate environment that is going up. So even if they see the NOI increase, can you really trust that cap rates remain so low?
- conclusion (my opinion only), a pretty generic deal with a young sponsor and middling to less than average financials (fees and waterfall)
I think you could find better deals on Crowdstreet or Realcrowd. I would at least look at the deals on those sites before you invest.
I love syndication, if you are just jumping in I think it is a great way to invest. Good Luck