Educational Case Study · 2026

Athens, Georgia
40-Unit Multifamily
Acquisition

This page presents an educational analysis of a representative deal type we evaluate. This is not an active offering, no capital is being raised, and all projections are hypothetical for learning purposes only.

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15.0%
Target LP IRR
1.89×
Equity Multiple
7.8%
Avg. Annual CoC
$2.74M
Total Equity Raise
5-Yr
Projected Hold
40 Units
Built 2001 · Brick Masonry
Athens-Clarke County, GA
$6.15M Offer Price
100% Occupied
Inactive Example · Not Raising Capital
01 · Executive Summary

The Opportunity at a Glance

A 40-unit duplex-style community in the Athens-Clarke County submarket presenting a proven value-add renovation thesis atop a deeply stabilized, cash-flowing asset.

$6,150,000
Offer Price
$153,750
Price Per Unit
7.76%
In-Place Cap Rate
$488,519
Yr 1 Projected NOI
$9,305,950
Projected Exit Value
6.08%
Exit Cap Rate

Why This Asset Stands Out

The property operates at 100% physical occupancy with zero evictions filed in six years and 97% average occupancy across 26 months — exceptional operational metrics that compress acquisition risk and establish a high-quality resident base on day one. The prior owner invested over $1.1M in capital improvements, leaving interior renovations as the primary remaining lever for value creation.

1

Fully Stabilized with Proven Rent Growth

Average in-place rents grew from $1,290 to $1,431 (+11%) over 26 months without a single interior renovation — confirming organic market demand for upgraded units.

2

$175 Proven Renovation Premium

The seller renovated one unit interior and achieved a $175/month premium before it was even marketed. The plan calls for 39 units at $8K/unit with a modeled 30% ROI per renovation.

3

Strong Market Positioning

Comparable sales average $174,943/unit. At $153,750/unit, this acquisition price implies a meaningful entry discount relative to the current market transaction level.

4

University + Industrial Demand Anchor

The University of Georgia (43.9K students) provides a stable occupancy floor, while SK Battery America's $2.6B facility and the Bana 85 Commerce Center drive workforce housing demand 3 minutes north.

5

Conservative Underwriting

Y1 proforma applies 5% vacancy against a 100% occupied asset, 1% loss-to-lease, and caps rent growth at 3% annually — well below the market's 11% organic historical performance.

02 · Investment Thesis

Six Questions Answered

Every capital allocation decision demands clear answers to the fundamental questions of value, timing, and execution. Here is how this opportunity responds.

Why This Asset?

A Turnkey Operating Platform with a Clear Renovation Runway

The seller delivered an exceptionally clean operating history: zero evictions in six years, 97% average occupancy, $1.1M+ in capital improvements already completed. New ownership steps in with minimal deferred maintenance and a single, high-ROI task: interior renovations across 39 of 40 units.

Why This Market?

University Anchor + Industrial Catalyst on the Metro Fringe

Athens sits at the intersection of a UGA-driven knowledge economy (43,900+ students, $9.2B state impact) and a rapidly industrializing Jackson County. SK Battery America's $2.6B campus and the 6.1M SF Bana 85 industrial park generate sustained workforce housing demand.

Why Now?

Supply Contraction Ahead of Projected Rent Acceleration

Athens is entering a post-supply-peak stabilization phase. 2026 deliveries are down ~30% YoY and the construction pipeline is shrinking materially. The market analysis projects 3–4% annual rent growth from 2027 forward as supply-demand balance tips back to landlords.

How Does Strategy Create Value?

Interior renovations at $8,000/unit drive a $195–$200/month rent premium — a 30% projected ROI on renovation capital. Combined with 3% annual organic growth, EGI is projected to expand from $708K to $836K over the hold period.

What Downside Protections Exist?

The asset performs at a 7.76% cap rate at acquisition — providing an income buffer. Breakeven occupancy sits at 77% in Year 1; the property has averaged 97% over the last 26 months. UGA-driven demand is structurally non-cyclical.

Why Can This Sponsor Execute?

8 years of owner-operated residential real estate with full self-management: leasing, marketing, contractor coordination, and tenant underwriting across ~30 renters annually. A 15% average annual cash-on-cash track record with multiple assets exceeding 100% appreciation. Hands-on, not a passive allocator.

03 · Investor Returns

Projected Returns by Investment Level

All projections are based exclusively on underwriting assumptions. Actual results may differ. Past performance is not indicative of future results. Projected distributions are not guaranteed.

Investment LP Equity % Yr 1 CoC Dist. Yr 2 CoC Dist. Yr 3 CoC Dist. Yr 4 CoC Dist. Sale Proceeds Total Return Profit Equity Multiple Target IRR

Cumulative Return Progression — $100K Investment

Yr1: $5,007 | Yr2: $13,310 | Yr3: $21,618 | Yr4: $30,217 | Sale Year: $189,347

Distribution Composition — $100K Investment (5-Year Total)

Cash distributions: $39,110 | Sale proceeds: $50,237 | Return of capital: $100,000

Important Notice: This is an inactive educational case study and not an active project or securities offering. No capital is being raised through this page. All return projections are hypothetical assumptions shown for illustrative learning purposes only and are not guarantees or predictions of future performance. This material does not constitute legal, tax, investment, or securities advice.

04 · Property Overview

The Asset: Duplex-Style
Community

A 40-unit, one-story duplex-style community built in 2001 on 22.92 acres in Athens-Clarke County. The property offers a residential character more akin to single-family than traditional multifamily — a key differentiator in resident retention.

40
Total Units
2001
Year Built
22.92 ac
Site Acreage
1,121 SF
Avg. Unit Size
44,840 SF
Total Rentable SF
Brick
Exterior Construction
20
Buildings
100%
Current Occupancy
Unit Type A
2 Bed / 2 Bath
20 units (50%) · 1,024 SF
Market rent: $1,347–$1,550 (reno)
Unit Type B
3 Bed / 2 Bath
20 units (50%) · 1,218 SF
Market rent: $1,567–$1,663 (reno)
Unit Amenities
Fully equipped kitchen
Private back patio
Front-door parking
W/D hookups
New HVAC systems
New water heaters
Ceiling fans
Personal mailboxes

Spotless Capital Profile

Over $1.1M in capital improvements completed by current ownership over the last six years — new roofs ($138K), HVACs, water heaters, paving, and $613K in building improvements. New ownership inherits a mechanically sound asset.

Flawless Operations

Zero evictions in six years. 100% rent collection over the trailing 12 months. 50% of residents have lived at the property for 3+ years. These are institutional-quality tenant quality metrics.

Home-Ownership Feel

Private driveways, front-door parking, individual patios, personal mailboxes, and a private hiking trail connecting to Sandy Creek Park. The lifestyle differentiator reduces turnover risk compared to conventional multifamily.

Additional Land Optionality

The property sits on 23 acres with a vacant centrally located parcel and existing zoning for additional duplex development. Outdoor amenity development (CrossFit-style fitness, gazebo, grilling zones) can further differentiate the community.

Proven Renovation Premium

One completed renovation achieved a $175/month premium before the unit was even listed for rent — a neighboring resident signed immediately. This constitutes the clearest possible demand signal for the renovation program.

05 · Market & Submarket Analysis

Athens-Clarke County: Stabilizing Market

Source: CoStar Market Analysis Report and independent market research. Athens is best understood as a university-anchored secondary market transitioning toward a landlord-favorable supply environment.

140,438
Athens 2025 Population
43,900+
UGA Students (Fall 2025)
3.0%
Unemployment Rate
~6%–6.5%
2026 Market Vacancy
−30% YoY
2026 New Deliveries
206%
Jackson County Pop. Growth Since 1990
Rental Comparable Summary
Property Units Occ. Avg SF Avg Rent $/SF
Subject Property 40 100% 1,121 $1,467 $1.31
Comparable A 158 91% 971 $1,408 $1.45
Comparable B 64 100% 1,148 $1,406 $1.22
Comparable C 220 92% 1,055 $1,455 $1.38
Comp Average 147 94% 1,058 $1,423 $1.35
Comparable Sales — 2024–2025
Property Units Closed Price/Unit Price/SF
Portico at Lanier 150 Dec '24 $188,400 $164.60
Alessia Gardens 126 Jul '25 $171,428 $149.69
Brookwood Townhomes 70 Jul '25 $165,000 $153.39
Comp Average $174,943 $155.89
Subject Acquisition 40 — $153,750 $137/SF

Structural Demand Anchor — University of Georgia

UGA enrolls 43,900+ students and employs 12,100+ faculty/staff with a $9.2B annual economic impact on Georgia. Enrollment growth provides a non-cyclical demand floor that conventional markets lack.

Industrial Demand Accelerant — Jackson County

SK Battery America's $2.6B facility employs 1,600+ workers 23 minutes away. The 6.1M SF Bana 85 Commerce Center targets full completion by 2029. Amazon's $18.5B Georgia footprint adds logistics employment within commute range.

Supply Pipeline Contracting

2026 deliveries are down approximately 30% year-over-year with absorption remaining positive. The multi-year construction pullback sets the stage for 3–4% annual rent growth projected from 2027 forward.

Near-Term Market Context

Athens is currently digesting 2023–2024 peak deliveries. 2026 vacancy is estimated at 6.0%–6.5% and rent growth is moderate at ~1–2% near-term. Underwriting conservatively models 3% growth annually.

Crime and Income Profile

Athens crime rates are above the U.S. average, which drives higher insurance costs and is reflected in the market's yield premium over Atlanta. Median household income of ~$48K–$52K limits the rent growth ceiling — the asset is appropriately positioned as workforce housing.

06 · Business Plan & Renovation Strategy

Creating Value Through Disciplined Execution

The business plan is straightforward: acquire a stabilized, well-maintained asset at a below-market basis and execute a capital-light interior renovation program with a demonstrated, market-proven rent premium.

Interior Renovation Program

Units to Renovate39 of 40
Renovation Cost Per Unit$8,000
Total Interior Budget$312,000
Exterior Budget$10,000
Contingency (10%)$32,200
Total Renovation Budget$354,200
Renovation Timeline12 Months
Units Renovated / Month~3.5
Rent Premium Per Unit+$195–$200/mo
Projected Renovation ROI~30%
Post-Reno 2BR Rent$1,550/mo
Post-Reno 3BR Rent$1,705/mo

Execution Timeline

1

Months 1–2: Acquisition & Transition

Close acquisition, onboard operations, establish renovation contractor relationships, set up resident communication plan for unit-by-unit program rollout.

2

Months 3–14: Renovation Execution

Rolling renovation at ~3.5 units/month. Renovate on natural turnover or negotiate early exits. Target zero forced displacement. Re-lease renovated units at market premium immediately upon completion.

3

Years 2–4: Stabilization & Income Growth

Fully renovated community stabilized at post-renovation rents. Focus on tenant retention, expense control, and organic rent growth. Property valuation expands with NOI growth.

4

Year 5: Exit

Target disposition at a 6.08% exit cap rate. Projected exit value of $9.3M ($233K/unit), representing a 51% appreciation over acquisition basis. Return of capital and profits distributed to investors.

Sources of Capital

Senior Acquisition Loan (70% LTV)$4,305,000
LP Equity (30%)$2,737,630
Total Sources$7,042,630

Uses of Capital

Property Acquisition$6,150,000
Renovation Budget$354,200
Closing Costs$289,050
Operating Reserves$126,380
Acquisition Fee (2%)$123,000
Total Uses$7,042,630
Debt Terms (Underwriting Assumption): $4,305,000 senior acquisition loan at 6.85% fixed interest rate, 5-year interest-only period, 25-year amortization, 70% LTV. DSCR at acquisition: 1.55×. Debt service: $294,893/year. Note: actual financing terms subject to lender approval at time of acquisition.
07 · Financial Overview

Five-Year Pro Forma

All projections are underwriting assumptions prepared from the sponsor's financial model. They are not a guarantee of performance. 3% annual rent growth and 3% annual expense growth are applied uniformly across the hold period.

NOI Progression (Year 1–5)

Yr1: $456K | Yr2: $548K | Yr3: $549K | Yr4: $557K | Yr5: $565K

EGI vs. Total Expenses (Year 1–5)

Income growing faster than expenses across the hold period
Line Item In-Place Year 1 Year 2 Year 3 Year 4 Year 5
Gross Potential Rent$671,964$742,390$793,299$801,232$817,257$833,602
Less: Vacancy & Credit Loss$0($97,834)($50,405)($50,405)($51,382)($52,395)
Other Income$64,338$64,338$64,981$65,631$66,944$68,283
Effective Gross Income$730,031$708,894$808,733$816,820$833,157$849,820
Total Operating Expenses($252,760)($252,760)($260,342)($268,153)($276,197)($284,483)
Net Operating Income$477,272$456,134$548,390$548,667$556,959$565,336
Less: Debt Service—($294,893)($294,893)($294,893)($294,893)($294,893)
Net Cash Flow (Before Capex)—$161,241$253,497$253,774$262,066$270,443
Expense Ratio (% of EGI)34.6%35.7%32.2%32.8%33.2%33.5%
Property Value (at market cap)$8,373,184$7,898,422$9,374,194$9,260,209$9,282,654$9,305,950
Exit Assumption: Projected sale in Year 5 at $9,305,950 ($233K/unit) applying a 6.08% exit cap rate to Year 5 NOI of $565,336. Sale costs estimated at 4% ($372,238). Remaining acquisition loan balance at sale is approximately $4,305,000 (interest-only structure). Net proceeds after debt and costs are distributed pro rata to investors based on equity ownership.
09 · Risk Considerations

Material Risks & Mitigants

All real estate investments carry material risk. The following are the primary risk factors identified for this investment. This is not an exhaustive list. Investors should conduct independent due diligence.

Moderate Market Risk

Short-Term Rent Growth Softness

The Athens market is currently absorbing 2023–2024 peak deliveries. Near-term rent growth is estimated at 1–2%. The business plan relies on renovation-driven premiums rather than organic market growth in Years 1–2.

Mitigant: Renovation program creates independent rent uplift regardless of market conditions. The asset is fully occupied at day one.
Moderate Renovation Risk

Cost Overruns & Timeline Slippage

Renovation costs could exceed the $8,000/unit budget due to material cost inflation or unforeseen unit conditions. Delays in renovation completion would defer rent premium realization.

Mitigant: 10% contingency included in the renovation budget. Rolling renovation schedule allows cash flow from occupied units throughout the program.
Moderate Liquidity Risk

Illiquid Investment — 5-Year Hold Period

Investors should expect no liquidity during the hold period. There is no secondary market for LP interests. Capital may be locked for longer than 5 years if exit market conditions are unfavorable.

Mitigant: The asset generates positive cash flow from Year 1. Investors receive annual distributions even during the hold period.
Lower Asset Quality Risk

Physical Asset Condition

The prior owner invested $1.1M+ in capital improvements. Major mechanical systems (HVACs, water heaters, roofs) have been recently replaced, limiting near-term capital expenditure risk.

Mitigant: Comprehensive capex history reduces the likelihood of major unplanned capital expenditures during the initial hold period.
Lower Occupancy Risk

Renovation-Period Vacancy

Interior renovations require unit downtime. The model assumes elevated Year 1 economic vacancy of approximately 13% to reflect renovation-period unit downtime alongside stabilized 5% vacancy thereafter.

Mitigant: Renovation is modeled conservatively at 3.5 units/month on a 12-month schedule. The rolling approach limits the number of units offline at any given time.
Important: This presentation is an educational and informational example only. The deal shown here is not active, and AG Squared Holdings is not raising capital for this project. Nothing on this page constitutes an offer to sell or a solicitation of an offer to buy securities. Projections and forward-looking statements are hypothetical and may not be achieved.
10 · Educational Next Steps

Learn How We
Analyze Deals

This page is for education only and does not involve an active raise. Use the contacts below to discuss our underwriting process, due diligence approach, and the types of multifamily deals we analyze.

1

Request a Process Walkthrough

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2

Review the Hypothetical Model

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3

Educational Q&A Session

Discuss market assumptions, renovation logic, and risk management decisions used in this case study.

4

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Contact AG Squared Holdings

Sponsor
AG Squared Holdings
Principal
Adrian Gonzalez
Email
adrian@agsquaredholdings.com
Website
agsquaredholdings.com
YouTube
@AdrianGonzalez-ag-squared
Status
Inactive educational example (not raising capital)
Projection Basis
Hypothetical assumptions for illustrative analysis
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This presentation has been prepared by AG Squared Holdings for educational and informational purposes only. The deal shown is not active, and no capital is being raised through this page. This content is intended to demonstrate the types of deals we analyze and how we think about underwriting. All projections are hypothetical, illustrative assumptions and are not guarantees of future performance. Nothing on this page constitutes an offer to sell or a solicitation of an offer to purchase any security. This presentation does not constitute legal, tax, financial, or investment advice. Consult your own advisors. © 2026 AG Squared Holdings. All rights reserved.