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
- 345-unit apartment complex
- Durham, NC (Research Triangle)
- $100,000 minimum commitment
- 8% annual yield, 1.6X equity in 5 years
- Click here to request a PPM
Multi-asset Investment Offering
- Portfolio of multiple assets
- $500,000 minimum commitment
- Geographic and Operator diversification
- Current income and capital appreciation
- Click here for more information
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 50Fund® investing.
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.
Beech Lake Apartments
Legacy Capital Partners (Legacy) has created Holdings One LAC LLC (the Company) to provide accredited investors the opportunity to invest in Beech Lake Apartments, a 345-unit garden style apartment complex in Durham, NC (Beech Lake). Beech Lake represents an opportunity to invest in a well-located and well-occupied (94%+) apartment property that will provide stable in-place cash flow and value appreciation through increased rental rates tied to unit-interior renovations and amenity upgrades.
Legacy entered into a Joint Venture with CAPREIT, Inc. (www.capreit.com) and acquired Beech Lake on April 29, 2015. The purchase price was $28,850,000 and the total cost, including a $3,004,000 renovation budget and closing costs, was $32,765,000. This represents a purchase price of $83,000/unit ($89/sf) and a total cost of $94,900/unit ($101/sf) which compare favorably to recent comparable sales and the cost of new construction. The acquisition and renovation budget was capitalized with a mortgage loan in the amount of $23,080,000 and $9,685,000 of equity. Legacy invested $7,748,000 and CAPREIT invested $1,937,000.
The investment strategy is to make immediate improvements to the clubhouse and the amenity areas and to renovate the interior of each of the units as they become available over the next three years. The proposed improvements and CAPREIT’s professional property management are expected to generate the desired financial performance.
The Company is offering 36 Membership Units for an aggregate purchase price of $1,800,000, or $50,000 per Membership Unit. The minimum investment is two (2) Membership Units for an aggregate purchase price of $100,000. However, 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.
Click here to Request a Confidential Private Placement Memorandum.
- Purchase price and total cost are below recent comparable sale (15% and 3.2% respectively)
- Strategically located asset near Chapel Hill, downtown Durham, Research Triangle Park, universities and major employers
- Rents are 12-41% per month and 3.5-33% per square foot below competitive properties
- Dated interiors present a value creation opportunity
- Project is underperforming strong market fundamentals
- New development occurring within 3 miles with substantially higher rents and at a higher cost basis
- Joint Venture partner is an experienced regional operator with ownership history in the market
The returns below assume a five year investment period and a sale at $105,775/unit
- The cash yield is projected to be a minimum of 8.0% annually
- An initial investment of $100,000 is projected to generate a total return of $160,560
- 65% of the return on investment is projected to come from cash flow