Legacy Capital Partners is a real estate private equity firm founded in 2004. Our ability to create value and achieve superior returns for our investors rests on five fundamental beliefs:
- 1Investment strategies have a shelf life. That is why we invest through a series of 50Funds® with strategies that work now and can be deployed quickly.
- 2It’s all about the fundamentals. We are real estate professionals experienced in finance rather than finance professionals investing in real estate.
- 3Relationships matter. Great investments are made with great partners whose capacity and ethics make all the difference.
- 4Risk is reduced by having a defined and consistent process for how investment opportunities are analyzed.
- 5Managing other people’s money requires strong internal systems and controls. We take our role as a fiduciary seriously.
Middle market real estate investors, deploying capital nationally through a series of focused funds with targeted strategies.
We focus on secondary markets and filter opportunities based on the partner, the location, and the investment’s ability to generate annual yield and capital appreciation.
Individual Investment Offerings
- 446-bed student housing complex
- Savannah College of Art & Design
- $100,000 minimum investment
- 9.0% annual yield, 1.70X equity in 5 years
- Click here to request a PPM (Available Soon)
- $1.65 million raised
- 8% annual yield, 1.68X equity in 5 years
- 235-unit apartment complex
- Newnan, GA (suburban Atlanta)
- $1.8 million raised
- 8% annual yield, 1.6X equity in 5 years
- 345-unit multifamily community
- Durham, NC (Research Triangle)
Multi-asset Investment Offering
- Portfolio of multiple assets
- $500,000 minimum commitment
- Geographic and Operator diversification
- Current income and capital appreciation
- Learn more about our next 50Fund®
- Initial closing 2013 / fully invested 2015
- $39,065,000 Raised / $39,756,600 Invested
- Nine multifamily assets / 2,598 units
- Total cost basis +$245 million
- 8% annual yield paid current since inception
Our investment process is from the ground up and begins in the trenches, as you would expect from an investment manager with deep roots in real estate development. We strive to reduce the probability of investment errors through a defined sequence of actions; our investment process is the same regardless of fund strategy. It’s what differentiates us from other managers.
Click here to learn more about our process.
“Legacy Capital Partners didn’t set out to create a new asset class, although that may very well be the by-product of our thinking.”
David St. Pierre | Co-Founder and President
There is a real possibility that Legacy Capital Partners’ 50Fund® investment model will change how many investors allocate capital. Fund Managers are constantly told that in order to attract larger investors and raise more capital, they need to raise bigger funds.
At Legacy Capital Partners we believe that bigger funds are not necessarily better. Raising 50 million dollars per fund allows us to systematically deploy capital into focused investment strategies. It eliminates the pressure to chase deals to “get the dollars out.” 50Fund® Investing provides our investors a single stop for deploying significant capital into real estate through a menu of multiple funds with specific strategies designed to take advantage of timely opportunities in the market.
Click here to learn more about Legacy’s next 50Fund®.
A partner with capital, not just a capital partner. The team at Legacy Capital Partners has over 100 years of collective experience in the commercial real estate industry, combining extensive backgrounds in real estate development, management, real estate finance, accounting, and law.
Mitchell C. Schneider
Co-Founder and Chief Executive Officer
Mitchell brings over 25 years of real estate development and legal expertise to Legacy Capital Partners. After practicing real estate law for approximately five years, Mitchell went on to found First Interstate Properties, Ltd., in Lyndhurst, Ohio. As the President and Chairman of the Board of Directors, he directed the company’s growth into a full-service real estate development firm that developed over four million square feet and manages a portfolio of over five million square feet. In March, 2010, Mr. Schneider was appointed to the four-member Investment Committee for National Real Estate Advisors, a multi-billion dollar real estate investment fund manager formerly known as the National Electricians Benefit Fund. Mitchell received his J.D. degree, cum laude, from The College of Law at The Ohio State University as well as a B.A. degree, with honors, in International Political Economics, also from Ohio State.
David St. Pierre
Co-Founder and President
David has focused his entire 20-year career on the real estate debt and capital markets, primarily as an institutional real estate lender and investor on a national basis. He has worked with numerous developers and real estate professionals across the country to provide senior and mezzanine debt and equity capital from his current role with Legacy Capital Partners in addition to his previous management positions at KeyBank and Bank One. Prior to co-founding Legacy Capital Partners in 2004, he was a Senior Vice President and acquisition banker with KeyBank Real Estate Capital’s Private Equity Group. In this capacity, he actively identified, underwrote, structured and closed equity and mezzanine investments in a broad range of properties on a national basis. David received his B.A. degree, cum laude, from Ohio Wesleyan University and his MBA degree from Cleveland State University.
Legacy Capital Partners (Legacy) has created LAC The Hue LLC (Company) to provide accredited investors the opportunity to invest in The Hue, a 446-bed purpose-built student housing complex in Savannah, GA serving the Savannah College of Art and Design (SCAD). The Hue was built in 2014 and represents an opportunity to invest in a well-located and stabilized student housing property that will provide stable in-place cash flow and value appreciation through increased rental rates tied to operational improvements and minor renovations.
Legacy entered into a joint venture with Cocke Finkelstein, Inc. (CFI), (www.cockefinkelstein.com) to acquire The Hue on December 18, 2015. This represents the fifth joint venture between Legacy and CFI. The purchase price was $42,075,000 and the total cost, including a $533,071 renovation budget, contingencies and closing costs, was $44,200,000. This represents a purchase price of $94,300/bed and a total cost of $99,100/bed which compares favorably to the cost of new construction. The acquisition and renovation budget was capitalized with a mortgage loan in the amount of $31,100,000 and $13,100,000 of equity. Legacy invested $8,000,000 and CFI invested $5,100,000. Campus First, a CFI affiliate, will be the property manager.
SCAD is a private, nonprofit accredited university whose main campus is located in various buildings scattered throughout Savannah's historic downtown (remote locations include Atlanta and Hong Kong). Enrollment in Savannah is 10,000 students and has been increasing. SCAD provides approximately 4,000 beds. This positive supply/demand imbalance bodes well for sustained demand at the property.
The investment strategy is to aggressively manage the asset to increase rents while maintaining near full occupancy. The property opened for the 2014/2015 school year and has been 100% occupied. Lease-up for the 2016/2017 school year is currently underway and rents are projected to increase $85/bed/month and $45/bed/month for the 2017/2018 school year. A 3.0% annual increase is expected thereafter. Even after the underwritten rental rate increases, The Hue will continue to compare favorably with SCAD provided housing and the limited purpose built student housing options in the market.
The Company is offering 61 Membership Units for an aggregate purchase price of $3,060,000, or $50,000 per Membership Unit. The minimum investment is two (2) Membership Units for an aggregate purchase price of $100,000. The Manager may, in its sole discretion, accept investments for less than two (2) Membership Units.
Investors will receive an 8% preferred return on their invested capital paid from net cash flow, refinance proceeds or sale proceeds. After the preferred return is paid current, investors will receive 80% of excess net cash flow. Once the preferred return is paid current and 100% of the investors' capital has been returned, the investors' will receive 80% of excess refinance and/or sale proceeds.
To request a Confidential Private Placement Memorandum please contact us at legacy@LCP1.com or 216-381-2303.
- Positive supply/ demand imbalance in the market
- Highest value proposition purpose-built student rental in the market
- In-place rents trail inferior university provided housing alternative
- New construction, fully leased and stabilized
- Well located within the historic downtown district and superior location to most on-campus and off-campus housing alternatives
- Unique school with relevant course work and growing enrollment
- Experienced sponsor and student housing management company
THE RETURNS BELOW ASSUME 1) a refinance and partial return of capital after three years and 2) a sale at $114,600/bed after 5 years
- The average annual cash yield is projected to be in excess of 9.0%
- An initial investment of $100,000 is projected to generate a total return of $170,500
- 55%+ of the return on investment is projected to be derived from cash flow