CWS Capital Partners LLC has experience in structuring three different types of investments: luxury apartment communities, the development of luxury apartment communities, and repositioning of older apartments (these will be in select locations enhanced by a substantial investment to upgrade the community).
Through an affiliated Broker Dealer, CWS Investments, CWS Capital Partners LLC gives the investor a choice in terms of which investment route to take. All of this depends on the specific returns you are seeking and the amount of risk you are willing to take. Each type of investment has very different characteristics, which make them unique from one another.
These investments are not publicly traded and are illiquid. As a result, these investments may not be suitable for every investor. Please refer to the appropriate offering's private placement memorandum for additional risk disclosures.
Investors should always seek advice from their own tax and legal counsel. The products are illiquid and have transfer restrictions. Accordingly, they are deemed to be speculative and involve a high degree of risk.
This material is for informational use only. It is not intended to provide and should not be relied upon to provide tax or accounting advice. Investors should always seek advice from their own tax and legal counsel.
Investment products are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by, any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
Luxury Apartment Communities
CWS Capital Partners LLC offers investment opportunities in existing luxury apartment communities in states such as Texas, North Carolina, Colorado, Georgia, and California through an affiliated Broker Dealer, CWS Investments. These apartment communities range from 50 units to over 600 units in size. The majority of the CWS Capital Partners LLC portfolio consists of Class A apartment communities, which are defined as being in top condition with very little to no need for capital improvements or repairs. CWS Capital Partners LLC will also invest in a Class B property if it is located in a high demand area where there is minimal competition from neighboring properties. This type of investment is most suited for conservative investors seeking predictable cash flow that is substantially sheltered from tax in the early years. We estimate the holding period for Class A or B apartment communities to be 7-10 years.
Another investment type offered by CWS Capital Partners LLC through an affiliated Broker Dealer, CWS Investments, is the development of luxury apartment communities. We either form a joint venture with a reputable partner to develop apartment communities or we develop the communities ourselves. This type of investment is one that requires a higher tolerance for risk, but at the same time, offers a higher reward than a traditional investment in luxury apartment communities. The holding period is estimated at 2-5 years.
The third type of investment offered by CWS Capital Partners LLC through an affiliated Broker Dealer, CWS Investments, is one which involves the acquisition of a lower quality property and making substantial capital improvements to it in order to produce a higher quality property that will command more demand in the marketplace. This type of investment offers cash flow, strong appreciation potential, and a 2-5 year holding period.
It is important that each investor choose an investment type that best suits his or her investment objectives. When reviewing our offerings, investors should take into consideration the following attributes of each offering:
- Investment Risk
- Cash Flow
- Potential For Capital Appreciation
- Holding Period
1031 Exchange Opportunities
Investors should always seek advice from their own tax and legal counsel. The products are illiquid and have transfer restrictions. Tenants-In-Common interests are unregistered securities. Accordingly, they are deemed to be speculative and involve a high degree of risk.
Taxable gains are something every investor worries about. Most sophisticated real estate investors know there is an alternative to paying large capital gains tax. This alternative known as a 1031 tax-deferred exchange is incorporated into our investment strategy on a regular basis. Through a 1031 exchange, we are able to defer up to 100% of our taxable gain and reposition equity into another property we feel outperforms the previous property. Since 1985, CWS Capital Partners LLC has exchanged over $208 million in equity and over $319 million of deferred gain associated with the equity.
Section 1031 of the Internal Revenue Code permits a real property owner who sells his property and then reinvests the proceeds in ownership of like-kind property to do so without immediately paying the capital gains tax.
Reasons to exchange into a CWS Capital Partners LLC property:
- Reduce management responsibility
- Reset depreciation clock
- Improve investment performance
- Consolidation into one property from several properties
- Divide an estate from one property to several properties for heirs or diversification