The Midtown Payoff: $100K to $119K in 12 Months
My first preferred-equity real-estate deal ran its full term and paid off — a 19.45% IRR over 366 days.
EVIVA Midtown Add-on Project Paid Off
- My first preferred-equity investment in a commercial real-estate project has been repaid in full.
- It ran 366 days from capital commitment to repayment of principal and accrued interest.
- The investment generated a 19.45% IRR.
Key Events
| Date | Cashflows | Description |
|---|---|---|
| Aug 30, 2016 | Capital Commitment | |
| Sep 6, 2016 | ($100,000) | ACH Deposit |
| Oct 18, 2016 | $667 | $4000 monthly distribution (@ 8% APR) |
| Nov 22, 2016 | $667 | $4000 monthly distribution (@ 8% APR) |
| Dec 20, 2016 | $667 | $4000 monthly distribution (@ 8% APR) |
| Jan 19, 2017 | $667 | $4000 monthly distribution (@ 8% APR) |
| Feb 21, 2017 | $667 | $4000 monthly distribution (@ 8% APR) |
| Mar 21, 2017 | $667 | $4000 monthly distribution (@ 8% APR) |
| Apr 20, 2017 | $667 | $4000 monthly distribution (@ 8% APR) |
| May 15, 2017 | $667 | $4000 monthly distribution (@ 8% APR) |
| Jun 8, 2017 | $667 | $4000 monthly distribution (@ 8% APR) |
| Jul 11, 2017 | $667 | $4000 monthly distribution (@ 8% APR) |
| Aug 21, 2017 | $667 | $4000 monthly distribution (@ 8% APR) |
| Sep 7, 2017 | $111,527 | Repayment of principal and accrued interest |
Funding
In September 2016, iFunding announced a $600,000 preferred equity follow-on offering for EVIVA Midtown. The investment offered an estimated 20% preferred return: 8% current return paid monthly and 12% accrual paid at maturity. The target maturity was June 2017 (10-month term). I committed $100,000, which was debited from my bank account on September 6, 2016. iFunding successfully completed the $600,000 raise and closed the transaction on September 16, 2016.
Distribution
On September 1, 2017, JAZCO Property Management announced that the EVIVA Midtown project had been paid off in full and expected to distribute funds the following week. Investors received repayment of principal and accrued interest on September 7, 2017. The project completed in July 2017, but required an additional month to close the sale. The total term extended to nearly 12 months. I received a total of $18,860 over 366 days, achieving an internal rate of return of 19.45%.
Commentary and personal experience — not investment, legal, or tax advice. Investing carries risk, including total loss of capital. Always do your own due diligence.
