LCP Austin
Dev Fund
LCP Austin Dev Fund
Austin’s High-Growth
Housing Sector
Up To 22%*
Annual Return
12 Months
Short Lock-Up Period
$20+ Million
Track Record in SFH Projects
$0
Asset Management Fees
$50,000
Minimum Investment
Tiered Preferred Returns
Class A1
$1M
Minimum Investment
22%
Preferred Return
Earn up to 18% returns with an additional 4% bonus available through December 31, 2024
Class A2
$100K
Minimum Investment
17%
Preferred Return
Earn up to 15% return plus an extra 2% bonus if you invest by September 30, 2024
Class A3
$50K
Minimum Investment
13%
Preferred Return
Bonus is carried through the lifetime of the investment (must invest by deadline)
Executive Summary
Background
- Proven prefabricated modular construction model
- 3-year track record in Austin
The Opportunity
- New zoning reforms in 3 homes per single family lot
- Acquire in-fill lots to build attainably priced modular homes with fast-tracked zoning
Prefabricated Modular Construction
- Build homes in half the time
- Lower construction and carrying costs
Investor Advantages
- High tiered preferred returns (up to 22%*)
- No fund fees
- Short 12-month lock-up period
Fund Strategy
Take advantage of new zoning reforms in Austin to build multiple homes per single-family lot, leveraging our expertise in modular construction, to deliver significant returns for our investors.
PHASE 1: BUY
Acquire teardown houses or lots in higher value neighborhoods
PHASE 2: BUILD
PHASE 3: SELL
Here’s Why You Don’t Want To Miss This Opportunity
- No fund fees
- Short 12-month lock-up period
- Retirement Account Funds Accepted
- For Accredited Investors Only
Fill out the form to get started
Advantages Of Modular Construction
Prefabricated Modular Housing allows us to take advantage of the opportunity faster and more efficiently than anyone else.
Maximizing Growth Opportunities
Streamlined for Success: Our Prefab Advantage
At Le Creme Partners, we’ve meticulously optimized our prefab operations to seize emerging opportunities and drive unparalleled growth. By leveraging cutting-edge technology and efficient processes, we ensure:
- Enhanced Efficiency: Faster project completion through streamlined workflows
- Cost Savings: Reduced overhead and production costs, benefiting our investors.
- Superior Quality: Consistent, high-quality construction standards with minimal delays.
- Adaptability: Agile operations that quickly respond to market demands and opportunities.
Advantages To Early Movers
First developers to build under the new zoning
We are building 9 houses on a 3-lot infill development in Austin using prefabricated modular construction (202 PecanDr, 78753)
Homes ready to sell 2H’24
From start to finish, we will have the homes completed in 3-months, significantly faster than using traditional construction.
How To Invest?
*Early investors benefit from bonus preferred return
Download Investor Presentation
Get detailed information about LCP Austin Dev Fund 25, including investment strategies, financial projections, and legal details.
Download Investor Presentation
Get detailed information about LCP Austin Dev Fund 25, including investment strategies, financial projections, and legal details.
Austin Market Overview
Single Family Housing has remained resilient
The overall housing market remains strong
- People aren’t selling who have locked in low rates
- Low supply of new homes
- Builders can’t build fast enough
Source: FHFA House Price Index (Purchase Only Index, Seasonally Adjusted)
Source: FHFA House Price Index (Purchase Only Index, Seasonally Adjusted)
Source: Site Selection Group Advisory Services
Austin Market Overview
AUSTIN projected to be the fastest growing metro in the U.S.
- Economic Boom: Austin’s economy is expanding at an unprecedented rate, fueled by a surge in tech startups, major corporate relocations, and a booming job market.
- Population Surge: The city is experiencing one of the highest population growth rates in the nation, driven by an influx of professionals, entrepreneurs, and families seeking the vibrant lifestyle and abundant opportunities Austin offers.
- Real Estate Potential: As demand for housing continues to soar, the real estate market in Austin is poised for significant appreciation, making it an attractive destination for investors.
- Tech Powerhouse: Home to industry giants and a thriving tech ecosystem, Austin’s reputation as a technology and innovation hub is a key driver of its rapid growth.
Source: Site Selection Group Advisory Services
Austin Market Overview
Job growth in Austin will continue to fuel housing demand
Best Cities for Earning Potential:
- Nashville, TN: Rapid economic growth with expanding job opportunities and increasing salaries.
- Austin, TX: A leader in job creation and high earning potential in a thriving market.
- San Jose, CA: Top earnings driven by the booming tech sector.
Worst Cities for Earning Potential:
- Bakersfield, CA: Faces slower wage growth and fewer high-paying job opportunities.
- Augusta, GA: Limited economic expansion and modest salary increases.
- Scranton, PA: Struggles with a weaker job market and lower earning potential.
Source: U.S. Bureau of Labor Statistics, Site Selection Group Advisory Services
Source: U.S. Bureau of Labor Statistics, Site Selection Group Advisory Services
Source: U.S. Bureau of Labor Statistics, Site Selection Group Advisory Services
Austin Market Overview
Job growth in Austin will continue to fuel housing demand
Top Cities for Payroll Growth:
- Austin MSA: Exceptional payroll growth fueled by a booming tech industry and strong job creation.
- Dallas MDiv: Significant payroll expansion driven by a diverse and robust economy.
- Nashville MSA: Impressive growth with increasing job opportunities across various sectors.
Worst Cities for Earning Potential:
- Bakersfield, CA: Faces slower wage growth and fewer high-paying job opportunities.
- Augusta, GA: Limited economic expansion and modest salary increases.
- Scranton, PA: Struggles with a weaker job market and lower earning potential.
Source: U.S. Bureau of Labor Statistics, Site Selection Group Advisory Services
Austin Market Overview
Austin’s job growth has far outpaced housing supply
Jobs/Housing Balance:
- Since 2010, over 66,000 more jobs have been created in Austin than housing units produced
- The jobs/housing balance has increased from 1.24 jobs for every housing unit in 2010 to 1.31 in 2022
Source: City of Austin Planning Department, October 2023
Source: City of Austin Planning Department, October 2023
Our Track Record
3
Years building prefabricated modular housing
$20+ million
prefabricated modular projects(1)
40+
Trained prefab construction Workers
Our Track Record
3
Years building prefabricated modular housing
$20+ million
prefabricated modular projects(1)
40+
Trained prefab construction Workers
Meet the team
Jeff Block
Managing Partner
Jeff’s investment philosophy revolves around building asset-based portfolios that generate strong cash flows and above average appreciation in markets with good longer-term outlooks.
Aram Sarkissian
Managing Partner
LCP Austin Dev Fund I FAQs
$50,000 for Class A3
Yes, each project resides within its own entity with its own ‘builders risk’ and general liability policies.
Turnkey Ventures (David) has negotiated a capacity allocation that is ample to meet our anticipated homebuilding run rate. Additionally, the factory is subject to quarterly review to keep pricing within 5% of local competitive bids.
Yes, the intention is to catch-up any accrued preferred returns as quickly as possible. The sponsor team is not allocated any profits unless the Class A investors are up-to-date on A likely scenario could be as follows… The fund begins operating and eventually benefits from a first sale approximately 6 months from inception. We begin making regular quarterly distributions in the third quarter. However, the Class A investors have two previous quarters of preferred returns accrued. The fund would try and catch-up the Class A investors as quickly as possible, such the future quarterly distributions would simply be for the preceding quarter.
Yes, after a 1-year lock-up period, investors can request a redemption of their invested capital. We will process these on a first-come first-served, best effort basis.
Accredited Investors
3 to 5 years Fund
Yes, there is an active acquisition pipeline that has properties at various stages, including closing, offers out, meets criteria for offer (on deck), in review, and issues (e.g. utility challenges). David’s acquisition team is always working to feed the pipeline.
The acquisition pipeline is dynamic and always changing and the sponsor team reviews it regularly. Currently (as of 5/14), there are offers out on (5) sets of lots with another (8) ready for offers or in review. We don’t anticipate the acquisition pipeline to be a gating factor.
No, the loan for each lot or set of lots will reside in an entity outside of the Fund. The Fund will loan the required capital to that particular entity wherein the developer, David, will obtain and secure the loan. There is a promissory note between the fund and the development entity that is secured by the real estate.
Yes, the homebuyer will receive a 2-10 home warranty that is purchased from a 3rd party, providing a level of insurance. These policies generally cover finishes and systems within two years and structural components for ten years.
There are no fees taken by the sponsors at the fund level. The sponsors are largely compensated on the back-end, after a project sells and after the Class A investors are caught up on their accrued preferred returns. Therefore, the sponsor team’s success is directly tied to delivering results.
The only fee is a low 1% management fee that goes to the developer (David) to help cover some administrative expenses. What are the investor returns? Do I get a piece of the upside? We have chosen to create a simplified fund structure that offers a high preferred return across various levels of investment.
Investment Tiers and Returns
• Class A-1: $1M Minimum, 18% preferred return (20% with additional bonus)
• Class A-2: $100k Minimum, 15% preferred return (17% with additional bonus)
• Class A-3: $50k Minimum, 13% preferred return (15% with additional bonus)
This fund structure helps ensure a solid return for investors, ahead of any sponsor compensation. We offer the high preferred return schedule in lieu of other upside mechanisms.
Our intention is to keep the fund open as long as the underlying business model of providing affordable homes via the new zoning is profitable. We are targeting up to 5 years but that could end sooner depending on market conditions (e.g. if too many people are willing to overpay for lots). Our intention is to move fast and “make hay while the sun shines.”
Having said that, we will try and balance the pacing of the incoming funds to match our acquisition funnel. Therefore, it is possible we may open and close the fund at various times to optimize funding with acquisitions.
Once all paperwork is signed and approved, and your funds are received, you begin accruing your preferred return.
Be a part of Austin's growth story with LCP Austin Dev Fund 25 and enjoy substantial returns on your investment
Be a part of Austin's growth story with LCP Austin Dev Fund 25
and enjoy substantial returns on your investment
*Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Neither Le Creme Partners LLC nor any of its affiliates provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees, and expenses. Prospective investors should consult with a tax or legal adviser before making any investment decision.