Key Info
FUND TYPE: 506(c)
*accredited investors only
Preferred Return: 8%
Target IRR: 18.4%
MIN. INVESTMENT: $100k
FUNDING DEADLINE: CLOSED
Introduction
The Village is a 267-unit apartment community in Terre Haute, Indiana — a substantial value-add opportunity anchored by a rare below-market assumable loan, a growing local economy, and a proven operations team with a track record of executing exactly this kind of play.
Why Responsive Capital Ventures?
Stephen (Our Founder) says: "The Village marks our second investment alongside the RCV team — and this one is personal in a way that goes beyond the numbers.
During my time on RCV's executive leadership team, I wasn't just watching this deal come together from a conference room. I was on the ground. I personally walked through dozens of units at The Village, conducting full interior and exterior inspections alongside the team. I was part of the conversations about how to drive NOI — where the operational inefficiencies were, what the CapEx priorities should be, how to close the gap between where this property was and where it could be.
When I tell you I believe in this deal, I mean it in the most literal sense possible. I've been inside these units. I've seen the bones of this property. I've sat in the planning sessions. This is not a deal I evaluated from a pitch deck — it's one I helped think through from the inside.
And the team executing it? I've already said it once and I'll say it again: RCV has never missed a preferred return payment to their investors. That's not marketing. That's a standard they hold themselves to personally. I saw it firsthand. These are the right people for this asset."
Overview
The Village is a 267-unit multifamily community acquired through our operating partners at Responsive Capital Ventures (RCV). This is a classic value-add: a stabilized, income-producing asset that has been undermanaged, with rents sitting well below market and an expense ratio that tells you everything you need to know about how the previous ownership ran the place.
The strategy is to bring in a world-class operations team, execute a disciplined $2M CapEx plan funded largely through the property's own cash flow, push rents to market, reduce expenses significantly, and install individual utility metering to shift costs back to tenants. The property is already generating income on Day 1 — we're not waiting on a turnaround. We're optimizing what's already there.
One structural advantage worth noting: the deal was acquired with an assumable Freddie Mac loan at 5.44% — meaningfully below current market rates. In today's rate environment, that's not a minor detail. That's a real competitive edge baked into the deal from the start.
Key Deal Details:
Asset Class: Class B Multifamily (Townhomes and Apartments)
Location: Kokomo, Indiana
Units: 267
Purchase Price: $18,500,000
Total Equity Raise: $5,900,000
Projected Returns: 8% Preferred Return | 23.8% AAR | 18.4% IRR | 2.38x Equity Multiple
Hold Period: 10 years (refinance targeted in Year 3)
Debt: Assumable Freddie Mac loan at 5.44% I/O | $14,700,000 loan amount | 75% LTV
Minimum Investment: $100,000 (0.508% equity per subscription; 59 subscriptions available)
Distribution Schedule: Quarterly, beginning Q4 of Year 1. First preferred return paid within 30 days after end of Q3 Year 1. Accrued preferred return from earlier quarters caught up at refinance.
Tax Advantages: Potential depreciation pass-through benefits. Note: these benefits are passive and typically cannot offset W-2 income. Consult your tax advisor.
Market Background
Terre Haute is a market with more going for it than it gets credit for. With an MSA population of 168,874 and over 14,000 college students between Indiana State University and Rose-Hulman Institute of Technology, the renter demand here is structural — not cyclical.
The local economy is also in the middle of a genuine growth moment. Over $2 billion in federal loans and tax credits have been secured for infrastructure and new development projects. Major employers like Caterpillar anchor the employment base, and the new 400,000 sq. ft. Vigo County Casino Resort — located just minutes from the property — represents a significant new source of local jobs and economic activity. The Village sits next to Terre Haute Regional Hospital, one of the area's largest employers, which creates a built-in pool of stable, working renters.
Market-wide occupancy averages 94.65%, and current vacancy at The Village sits at 90.6% — meaning the gap between where the property is and where the market is represents immediate, achievable upside.
Projected Returns and Financials
The numbers here are driven by four concrete levers RCV will execute against from Day 1.
Rent Growth: Current average rent is $802.67/month. Market rate is $950.00 — a gap of $147/unit on average. With renovations, projected rent growth reaches 32.3% across unit types:
1 Bed / 1 Bath: $698 → $850/mo (21.8% increase)
2 Bed / 1 Bath: $806 → $950/mo (17.9% increase)
2 Bed / 2 Bath: $904 → $1,050/mo (16.2% increase)
Expense Reduction: Current expense ratio is 52%. RCV is targeting 38% through centralized operations — a model they've already proven across their portfolio.
Occupancy Upside: 25 units are currently vacant. RCV's team is leasing at near 100% occupancy in the region. That vacancy is costing ownership $149K/year today.
Utility Billing: No individual metering currently in place. Installing individual meters will shift $118K/year in water and sewer costs to tenants.
CapEx Plan: $2M total — $500K deployed upfront for critical repairs and curb appeal, with the remainder self-funded through property cash flow over Years 1–3. Goal is 50% of units renovated in Year 1, remainder in Year 2. Renovation highlights include LVP flooring, kitchen and bathroom upgrades, HVAC replacement, 17 new roofs, exterior siding repairs, and common area improvements. The leasing center will be converted to additional rentable units.
Projected Investor Returns (Base Case):
Preferred Return: 8% (cumulative, accrues from acquisition)
Average Annual Return: 23.8%
IRR: 18.4%
Equity Multiple: 2.38x
Refinance: Year 3
Exit: Year 10
These are projections based on current assumptions and market conditions. They are not guarantees of future performance. Please review the full PPM before making any investment decision.
Our Operating Partners:
The Village is being operated by Responsive Capital Ventures (RCV), a real estate private equity firm with a dedicated team of professionals focused on multifamily acquisition, operations, and investor returns.
https://www.responsivecapitalventures.com/
RCV's centralized operations model is one of the key reasons we chose to invest in this deal. Their team is currently leasing similar properties in the region at near 97% occupancy — which tells you everything you need to know about their execution capability.
Frequently Asked Questions (FAQ)
Q: What makes The Village stand out as a deal?
A: A few things. First, the assumable Freddie Mac loan at 5.44% is a structural advantage that most deals can't offer right now — lower debt costs directly improve investor returns. Second, this is a 267-unit asset, which means RCV's centralized operations model can generate serious economies of scale. Third, the value-add thesis here isn't speculative — the rents are provably below market and the expense ratio is provably too high. The upside is right there on paper.
Q: Why is the expense ratio so high right now?
A: At 52%, the property is being run inefficiently by current ownership. RCV's centralized model targets 38% — and closing that gap is one of the primary drivers of NOI growth and property value appreciation in this deal.
Q: The CapEx plan is $2M — how is that funded?
A: $500K is deployed upfront at acquisition for critical repairs and curb appeal. The remaining $1.5M is self-funded through the property's cash flow over Years 1–3. This approach means investor capital isn't being consumed by renovations — the property pays for its own improvements as it stabilizes.
Q: When do distributions start?
A: Preferred returns accrue from Day 1. The first cash distribution is paid within 30 days after Q3 of Year 1. Any accrued preferred return from the first two quarters is caught up at the time of refinance. No investor goes without what they're owed.
Q: Is the preferred return guaranteed?
A: No — and be skeptical of anyone who tells you it is. The preferred return is a hurdle the GPs must clear before they participate in any profits. It prioritizes you as an LP, but if the deal doesn't perform, it doesn't get paid. That's why the quality of the operating team matters more than the terms on the page.
Q: What's the refinance strategy?
A: RCV is targeting a refinance in Year 3, timed to coincide with stabilization and NOI growth. The goal is to return a portion of investor principal while equity stakes remain in place — allowing investors to continue participating in upside post-refi.
Q: What are the tax benefits?
A: Investors may benefit from depreciation pass-through on their proportional ownership stake. However, these are considered passive losses and generally cannot be used to offset W-2 income. Consult your CPA for specifics.
Q: Can I invest with IRA funds?
A: Potentially yes, but UBIT (Unrelated Business Income Tax) implications may apply. Talk to a qualified tax advisor before doing so.
Q: How often will I receive updates?
A: RCV provides quarterly reporting covering asset performance, financial updates, and operational highlights.
This is a 506(c) offering available to Accredited Investors only. This page is for informational purposes and does not constitute a securities offering or general solicitation. All projected returns are based on assumptions and market trends that may change over time. They should be considered estimates, not guarantees. Please review and execute the PPM and all related offering documents before investing. Mission Capital Funds, LLC and Responsive Capital Ventures do not provide tax, legal, or investment advice.
© Mission Capital Funds, LLC