Business Plan · Confidential · Growth Fund
K7 Urban Village
Texas BTR Fund
Execution plan for a $50M equity Build-To-Rent fund focused on mixed-use intergenerational urban villages in San Antonio, Texas. Ground-up duplex-based development targeting 15–20%+ IRR and 2.5x–5.5x equity multiples across a 10-year fund life with a 5-year holding period. 401K / IRA eligible. Schedule K1.
Fund Targets
Target IRR15–20%+
Equity Multiple2.5x – 5.5x
Fund Life10 years
Hold Period5 years
Exit CarryAfter year 3
Time to Close60–90 days
Structure506(c) Reg D
Tax FormSchedule K1
Retirement Eligible401K / IRA
01
Fund Thesis
Ground-Up BTR in Fastest-Growing U.S. Sunbelt Metro
The K7 Urban Village Texas BTR Fund is a higher-return growth fund that deploys K7's Centenarian Village concept in a ground-up greenfield context in San Antonio, Texas — rather than the institutional adaptive-reuse context of the Notre Dame flagship. The fund is a complementary vehicle to the Notre Dame raise: same sponsor team, same intergenerational mixed-use philosophy, different risk/return profile.
- Focus: high-return, complex deals, early-stage ground-up development.
- Return profile: 15–20%+ IRR; 2.5x–5.5x equity multiple.
- Asset class: mixed-use intergenerational senior-plus-workforce housing in BTR configurations (duplex + townhome + 1-bedroom mix).
- Fund structure: 506(c) Regulation D; fund life 10 years, hold period 5 years; 401K / IRA eligible; Schedule K1.
- Cash distributions: exit carry distributions commence after year 3.
- Close: 60–90 days to commitment close.
San Antonio sits in the Texas Triangle with sustained population growth, a pro-development entitlement environment, and a cost basis materially lower than Austin or Dallas. BTR demand fundamentals support premium rents relative to traditional single-family-rental configurations, particularly in intergenerational duplex layouts that serve both workforce renters and active-adult / senior renters simultaneously.
02
Strategy
The Intergenerational Duplex BTR Model
Traditional BTR funds default to single-family detached homes aimed at one demographic — typically young families. The K7 Urban Village fund takes a duplex-anchored intergenerational approach designed to compound rental yield and reduce turnover volatility by pairing two complementary renter segments on the same parcel.
- Duplex configuration: paired units enable workforce / family renters on one side and active-adult / senior renters on the other — a demographic mix that tends to be economically resilient through cycles.
- Townhome + 1-bedroom mix: within a village layout, townhome product serves family renters while 1-bedroom product serves younger workforce and senior-downsizer demand.
- Amenity layer: shared village amenities (walking paths, gathering spaces, small-format retail) create social fabric that extends average length of stay and increases renewal rates — the single largest lever on BTR unlevered returns.
- Cost basis advantage: ground-up BTR at San Antonio land and construction costs continues to price materially below comparable Austin BTR product, creating yield-spread upside.
03
Market
San Antonio — The Quiet Sunbelt Growth Story
MSA Population
2.6M+
7th largest U.S. city
Job Growth Ranking
Top 10 metros
Sustained multi-year
Entitlement Env
Pro-Dev
Texas no state income tax
Basis vs Austin
Materially Lower
Land + hard cost
Why San Antonio > Austin for BTR Right Now
Austin BTR has compressed to low-yield territory on an unlevered basis. San Antonio offers comparable Texas Triangle demographic tailwinds at a structurally lower cost basis — creating wider development yield spreads, which is the single most important driver of BTR equity multiples on a 5-year hold.
04
Fund Structure
Terms & Investor Economics
Fund Size$50M equity
Offering Type506(c) Regulation D
Investor EligibilityAccredited investors only
Target IRR15–20%+
Target Equity Multiple2.5x – 5.5x
Fund Life10 years
Hold Period per Asset5 years
Distribution ProfileExit carry after year 3
Time to Close60–90 days
Tax ReportingSchedule K1
Retirement Eligibility401K / IRA
05
Use of Proceeds
Indicative $50M Deployment Plan
| Allocation | Indicative | Purpose |
|---|
| Land Acquisition | ~$8M | Village-scale parcels in San Antonio growth corridors |
| Horizontal Development | ~$6M | Site work, utilities, entitlements |
| Duplex Vertical Construction | ~$22M | Duplex pairs — workforce + active-adult configuration |
| Townhome / 1-BR Product | ~$8M | Townhome clusters and 1-bedroom amenity product |
| Village Amenities | ~$2M | Shared walking paths, gathering spaces, small retail shell |
| Soft Costs / A&E / Permitting | ~$2M | Cross-project |
| Lease-Up & Working Capital Reserve | ~$2M | Stabilisation bridge |
| Total Equity Raise | $50M | With construction debt layered separately at project level |
Leverage Assumption
Individual village assets will be developed with project-level construction debt in line with market BTR loan-to-cost ratios. Fund-level reporting consolidates equity performance net of project leverage; all return targets quoted are levered returns to the LP equity.
06
Returns & Exit
How Capital Comes Back
Years 1–2
Deploy
Acquire land · construct villages
Year 3
Stabilise
Lease-up · first exit carry
Years 3–5
Harvest
Cash yield + rent-growth compounding
Year 5
Exit
Portfolio sale or recap
Wind-Down
Years 6–10
Residual carry + fund closeout
Equity Multiple Target
The fund targets a 2.5x–5.5x equity multiple over the 10-year fund life, driven by (a) development yield-on-cost spread captured at delivery, (b) 5-year rent-growth compounding in a supply-constrained San Antonio sub-market, and (c) portfolio-scale disposition premium on a clean stabilised BTR portfolio.
07
Risk Framework
Identified Risks & Mitigants
MEDIUM
Ground-up construction cost inflation
Mitigant: San Antonio's sub-market labour and material pricing remains materially below Austin/Dallas. Fund will contract with a small number of repeat regional GC partners to lock pricing at volume. Contingency reserves sized at 5–8% of each village budget.
MEDIUM
Lease-up absorption risk
Mitigant: San Antonio MSA population growth and workforce housing demand support projected absorption. Intergenerational duplex configuration broadens the addressable renter pool vs single-demographic BTR. Lease-up reserve is sized to cover an extended stabilisation period.
LOWER
Entitlement / permitting risk
Mitigant: Texas is a pro-development state with a relatively streamlined entitlement process. Land acquisitions are conditional on entitlement confirmation wherever feasible.
MEDIUM
Interest-rate / cap-rate exit sensitivity
Mitigant: 5-year hold on each asset provides flexibility on timing into better cap-rate environments; fund life of 10 years gives the GP ability to hold through an adverse cap-rate cycle if needed rather than force an exit.
LOWER
Sponsor concentration
Mitigant: K7 sponsor team executes this fund in parallel with the Notre Dame flagship and the Austin Income Fund, each with dedicated asset-management leads. Diversified sponsor capacity across the three funds reduces single-project execution dependency.
Financial model & pro-forma detail
Fund-level IRR scenarios, equity multiple sensitivities, and stabilised-yield model available on the Financials page.
Disclaimer · Confidential Business Plan
Strictly Confidential
This Business Plan for the K7 Urban Village Texas BTR Fund is confidential and for the exclusive use of the authorised recipient. This is a 506(c) Reg D offering limited to accredited investors under U.S. securities laws. Forward-looking statements involve risks and uncertainties; actual results may differ materially.