Financials · Growth Fund Pro-Forma
K7 Urban Village
Financial Model
Fund-level financial pro-forma for the K7 Urban Village Texas BTR Fund. $50M equity raise, deployed into ground-up intergenerational duplex Build-To-Rent communities in San Antonio. 10-year fund life, 5-year hold, 15–20%+ IRR, 2.5x–5.5x equity multiple target. Exit carry distributions from year 3.
Fund Financials
Fund Size (Equity)$50M
Target IRR15–20%+
Target Equity Multiple2.5x – 5.5x
Base Case MOIC (Y5)~3.2x
Fund Life10 years
Hold per Asset5 years
Exit Carry BeginYear 3
Tax FormSchedule K1
Retirement Eligible401K / IRA
Time to Close60–90 days
01
Fund Economics
K7 Urban Village · $50M BTR Fund Terms
| Texas BTR Fund (USD) | Amount |
|---|
| Fund Size (Equity Raise) | $50M |
| Target Location | San Antonio, TX |
| Product Type | Duplex + Townhome + 1-BR BTR |
| Target IRR | 15–20%+ |
| Target Equity Multiple | 2.5x–5.5x |
| Base Case Equity Multiple (Y5) | ~3.2x |
| Fund Life | 10 years |
| Holding Period per Asset | 5 years |
| Exit Carry Distributions Begin | Year 3 |
| Tax Documentation | Schedule K1 · 401K / IRA eligible |
| Time to Close | 60–90 days |
| Regulatory Structure | 506(c) Reg D · 3(c)5 |
Fund Mechanics
The Urban Village Fund deploys the full $50M into ground-up BTR duplex communities in the San Antonio submarket. Capital is deployed across acquisition, entitlements, ground-up construction, and stabilisation — with exit carry distributions beginning in Year 3 as earlier vintages stabilise. The 2.5x–5.5x equity multiple range reflects deal-level execution spread; base-case pro-forma targets ~3.2x at the 5-year hold.
02
Indicative Use of Proceeds
$50M Equity Deployment Plan
| Allocation | Indicative | % of Fund |
|---|
| Land Acquisition | ~$8M | 16% |
| Horizontal Development (site, utilities, entitlements) | ~$6M | 12% |
| Duplex Vertical Construction | ~$22M | 44% |
| Townhome / 1-BR Product | ~$8M | 16% |
| Village Amenities (walking paths, gathering, small retail) | ~$2M | 4% |
| Soft Costs / A&E / Permitting | ~$2M | 4% |
| Lease-Up & Working Capital Reserve | ~$2M | 4% |
| Total LP Equity | $50M | 100% |
Project-level construction debt layered separately at each asset. All return targets quoted are levered returns to the LP equity, net of project debt service.
03
Return Path
Capital Deployment & Harvest by Year
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 Drivers
The 2.5x–5.5x equity multiple is driven by (1) development yield-on-cost spread captured at delivery, (2) 5-year rent-growth compounding in a supply-constrained San Antonio sub-market, (3) portfolio-scale disposition premium on a clean stabilised BTR portfolio at Y5 exit. The base case assumes a 3.2x terminal multiple; the 5.5x high case assumes a 1.7–2.0x valuation premium from portfolio aggregation and platform scarcity.
04
Scenario Analysis
Low / Base / High Outcomes
Low Case
~2.5x
MOIC · ~15% IRR
Base Case
~3.2x
MOIC · ~17–18% IRR
High Case
~5.5x
MOIC · ~22%+ IRR
Scenario Sensitivity
Low-case assumes compressed rent growth (≤2% p.a.), elevated exit cap rates (~6.5%), and an extended lease-up runway. High-case assumes sustained Sunbelt tailwinds, 5%+ rent growth compounding, cap-rate compression to ~4.75%, and portfolio-aggregation premium at Y5 exit.
05
Key Assumptions
Pro-Forma Assumption Ledger
Construction timeline per village18–24 months
Lease-up / stabilisation6–12 months post-delivery
Stabilised BTR NOI margin55–62%
Base-case annual rent growth3–4%
Exit cap rate (base)~5.75%
Exit cap rate (high)~4.75%
Project-level loan-to-cost55–65%
LP preferred return8% (typical)
LP / GP waterfall split above preferred80 / 20 (typical)
Contingency per village5–8% of budget
Complete due-diligence package
Village-level unit mix, site plans, GC pricing references, San Antonio submarket comps, and full sensitivity analyses available on request to accredited investors.
Disclaimer · Confidential Financial Model
Projected Financials · Forward-Looking
All financial figures for the K7 Urban Village Texas BTR Fund are projected and forward-looking, based on management assumptions regarding construction cost, lease absorption, rent growth, and macro conditions. Actual results may differ materially. This is a 506(c) Reg D offering limited to accredited investors. Investment involves risk of loss of principal.
K7 Capital Partners · 2025 Guadalupe Street, Suite 260, Austin, TX 78705 · www.k7capitalpartners.com