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 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
- 457-unit portfolio
- Knoxville, TN
- $100,000 minimum investment
- 9.0%+ average annual yield, 1.76X equity in 5 years
- Click here to request a PPM
- $3.38 million raised
- 8.5%+ annual yield, 1.65X equity in 5 years
- 612-bed student housing complex
- University of South Florida (Tampa, FL)
- $3.468 million raised
- 8.1%+ annual yield, 1.66X equity in 5 years
- 500-unit apartment complex
- Durham, NC
- $4.39 million raised
- 8.0%+ annual yield, 1.70X equity in 5 years
- 424-unit apartment complex
- Miami, FL
- $2.85 million raised
- 8.0%+ annual yield, 2.05X equity in 7 years
- 648-bed student housing complex
- Salisbury University (Salisbury, MD)
- $1.96 million raised
- 8.0%+ annual yield, 1.75X equity in 5 years
- 354-unit apartment complex
- Atlanta, GA
- $2.73 million raised
- 8.0%+ annual yield, 1.69X equity in 4 years
- 400-unit apartment complex
- Birmingham, AL (Grandview Medical Center)
- $4.08 million raised
- 9.0%+ annual yield, 1.70X equity in 5 years
- 446-bed student housing complex
- Savannah College of Art & Design (Savannah, GA)
- $1.65 million raised
- 8.0%+ 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 April 2016
- $50,000,000 raised / $48,524,098 invested to date
- 13 multifamily assets / 3,653 units to date
- Total cost basis $447.5 million
- 8% annual yield paid current since inception
- 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 Chairman
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 retail real estate development firm that developed over four million square feet of retail space and manages a portfolio of retail and industrial properties 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 Managing Director
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 Knoxville Holdings LLC ("Company") to provide accredited investors the opportunity to invest in Briarcliff I & II, a 377-unit apartment complex and River Hill, an 80-unit townhome complex in Knoxville, Tennessee ("Briarcliff" and "River Hill" and collectively "Knoxville Holdings"). Knoxville Holdings represents an opportunity to invest in a well-located and well-occupied (95%) middle market rental housing portfolio that will provide stable in-place cash flow and value appreciation through increased rental rates tied to select interior renovations, operational improvements and minor common area renovations.
Legacy entered into a joint venture with MACC Realty Partners ("MACC") to acquire Briarcliff and River Hill. This represents the second joint venture between Legacy and MACC. The purchase price was $32,225,000 and the total cost, including $3,544,000 for renovations, contingencies and closing costs, is $35,768,000. This represents a purchase price of $70,514 /unit and a total cost of $78,270 /unit which is well below reproduction cost. The acquisition and renovation were capitalized with two loans in the total amount of $24,893,000 and equity in the amount of $10,875,000. Legacy invested $8,700,000 and MACC and its affiliates invested the remaining $2,175,000.
The Seller had implemented a three-tiered renovation program and the units are currently categorized as follows: Deluxe (unrenovated), Premium (partially renovated), and Select (completely renovated). The investment strategy is to renovate the Deluxe units to the Select and standardize the finishes within the Premium units to provide a more consistent product offering. The planned physical and operational improvements should allow the rental rates to be increased to rates already being achieved at the properties for the renovated units. Furthermore, with an upgraded and more consistent product offering, and hands-on management, the rental rates at the portfolio should begin to approach the higher rental rates being achieved today at comparable properties in the market. These rental rate increases should further strengthen the cash flows and generate the desired capital appreciation during the investment period.
The Company is offering 75.48 membership units ("Membership Units") for an aggregate purchase price of $3,774,000, or $50,000 per Membership Unit (“Offering”). The minimum investment will be two (2) Membership Units for an aggregate purchase price of $100,000 and the maximum investment will be seven (7) Membership Units for an aggregate purchase price of $350,000. However, the Manager may, in its sole discretion, accept investments for less than two (2) or greater than seven (7) Membership Units. The Investor Members will receive an 8.0% preferred return on their invested capital paid from net cash fl ow, refinance proceeds and/or sale proceeds. After the preferred return is paid current, Investor Members will receive 80% of excess net cash fl ow. Once the preferred return is paid current and 100% of the Investor Members capital has been returned, the Investor Members will receive 80% of excess refinance and/or sale proceeds.
To request a Private Placement Memorandum please contact us at legacy@LCP1.com or 216-381-2303.
- Off-market transaction with attractive purchase price and total cost
- Middle market apartment communities with below market rents
- Both properties are well located within their respective submarkets, each with desirable school systems
- Strong in-place cash ﬂows with renovation and management upside
- Experienced Joint Venture partner with in-house property management company
The returns below assume a 5 year investment period and a sale at $89,954 per unit.
- The average annual cash yield is projected to be approximately 9.4%
- An initial investment of $100,000 is projected to generate a total return of $176,000
- 62% of the return on investment is projected to be derived from cash ﬂow