Harvard Grace Capital

Min. Invest
$5,000
Target Hold
60 mo
Target IRR
22.5%
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Project Summary

Bond yields have been low for some time, forcing income investors to seek alternative investments for their income needs.  HGCC was formed to offer investors predicable recurring income streams with the additional opportunity for capital gains.

2021 presents what may be the biggest opportunity in a generation to acquire quality assets at a discount.  The Pandemic has impacted everyone; however, some businesses have fared better than others.  After nearly, a year of COVID-19, some patterns have emerged as to how the "new normal" will take shape.

  • People are moving back to suburbs
  • Suburban office properties are in demand
  • Co-working spaces are more popular than ever
  • Industrial property demand is soaring due to online retail

By focusing on the 840/565 corridor HGC will opportunistically target stable projects to build an increasing recurring cash returns.

Investment Type Preferred Equity
70/30 Waterfall Participation
Term 60 Months
Raise Amount $10,000,000
Target IRR 22.5%

Why Invest?

THE TEAM

HGCC is board managed by successful entrepreneurs. Each has their own business and real estate experiences and successes.  Harvard GRace has brought this elite team together for this opportunity in time.  The board will bring its collective expertise to HGCCs investment decisions.

We know the target region.  We live and work here.

THE MODEL

Harvard Grace Capital Corporation ("HGCC") will invest in real estate properties and businesses for the purpose generating recurring cash flow and capital gains. These investments will take varying forms. Likely HGCC will provide short-term equity or secured notes with equity attributes.

Since the societal changes implemented of the COVID-19 pandemic, investment firms have changed their tactics for soliciting investment capital.  On CNBC, Fox Business and email blasts, investment firms have opted for general solicitation ads.   these ads offer fixed returns from 9% to 16% with no opportunity for additional upside. These are essentially debt instruments with varying levels of securitzation.

HGCC's preferred stock offering is highly differentiated from other investment options by not only offering a fixed 6.5% preferred return but also a participate with 30% of the profit distributions.  We estimate this will enhance the overall IRR from 6.5% to 22.5%.

Further differentiation comes from how HGCC will be taxed.  Once HGCC has 100 investors, we will elect to be taxed as a Real Esate Investment Trust (REIT).  A REIT is not taxable at the corporate level, as long as it distributes at leaset 90% of its income.

The REIT status also ensures no investor will have "phantom income" or have  to wait for a K-1 to file their taxes.  The only income reporting will be by 1099-DIV, which will be receibed by the end of Januay each year.

Financial Summary

Harvard Grace Capital Corporation (“HGCC”) will invest in real estate properties and businesses for the purpose of generating recurring cash flow and capital gains. These investments will take varying forms. Likely, HGCC will provide short-term equity or secured notes with equity attributes.

HGCC’s preferred stock offering is highly differentiated from other products by not only offering a fixed 6.5% preferred rate but also a participation in the profit distributions, which will enhance the returns on investment to an estimated 22.5% annually over ten years.

Financial Sources

Preferred Equity $10,000,000

Financial Uses

Investment Properties $9,500,000
Costs $500,000

The Tennessee Valley

Harvard Grace's invesmtent focus is the significant growth that's occuring between Nashville, Tennessee and Huntsville, Alabama.  What we refer to as the 840/565 Corridor encompasses the region between I-840, south of Nashville to I-565, which runs through North Alabama and the center of Huntsville.  HGCC has identified multiple opportunites in this area and anticipates more as the region recovers from the pandemic.

Why have we zeroed in on Huntsville?  Huntsville is already Alabama's second-largest city and is the state's fastest-growing as well.  Likewise, the entire northern Alabama region, including Athens and Decatur, are seeing massive investments from industrial interests, creating tens of thousands of jobs.  Recent projections from AL.com estimate Huntsville will be Alabama's largest city by 2028.

Both the public and private sectors fuel Huntsville's growth.  A long-time Army and NASA research hub, Huntsville is home to relocated personnel from the US Army, FBI, CIA, and the NSA as well as many private sector firms that do business with these agencies.

Additionally, the regions manufacturing sector has experienced significant growth driven by Blue Origin (Jeff Bezos' rocket engine company), Facebook, Remington, Polaris and a Toyota/Mazda joint venture and many more inducstrial companies.

All of this activity has made Huntsville, and the entire Tennesse Valley, one of the fastest growing areas in the United States.  Comparatively, however, this region received little attention from the tradtitional large institutional investment firms and REITs, leaving a capital void.  This void creates an opportuntity.  

This opportunity is the primary focus of Harvard Grace Capital!

Investment Strategy

We have chosen the Tennessee Valley first and foremost its a region we know well and have lived and worked in for many years.  Second, its one of the fastest growing regions in the country but because its deemed a small market it does not get a lot of attention.

We we will focus on multi-family, office and industrial properties that are cash flowing and may need some enchancements to further optimize cash flow.  We will consider any cash flowing property we believe can deliver the returns to our investors in a stable and recurring fashion.

We may consider business operations that are inextricably connected to the underlying real estate.  The Tennessee Alabama state line provides arbitrage opportunties on each side.

We will pursue any opportunity that meets the parameters of cash flow generation and secured by real estate.

We will not do new development because of the cash return profile but we may take on cash flowing projects that have additional developement opportunities.

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Investor Tutorial

CERTAIN INFORMATION REGARDING THIS OFFERING

THESE UNITS ARE BEING OFFERED WITHOUT REGISTRATION UNDER ANY FEDERAL OR STATE SECURITIES LAWS, BUT ARE BEING OFFERED UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER COMPARABLE EXEMPTIONS UNDER VARIOUS STATE SECURITIES LAWS. HOWEVER, THE SECURITIES AND EXCHANGE COMMISSION (“COMMISSION”) HAS NOT DETERMINED THAT THESE UNITS ARE EXEMPT FROM REGISTRATION. THESE UNITS HAVE NOT BEEN REVIEWED, APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY, ADEQUACY, COMPLETENESS OR MERITS OF THIS MEMORANDUM, AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL TO, OR A SOLICITATION OF AN OFFER TO BUY FROM, NOR SHALL ANY OF THE UNITS BE OFFERED OR SOLD TO, ANY PERSON IN ANY JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION, PURCHASE, OR SALE IS UNLAWFUL OR UNAUTHORIZED UNDER THE SECURITIES LAWS OF SUCH JURISDICTION.

THE STATEMENTS MADE HEREIN ARE MADE AS OF THE DATE ON THE COVER OF THIS OFFERING MEMORANDUM. THIS OFFERING MEMORANDUM CONSTITUTES AN INVITATION TO THE PROSPECTIVE INVESTOR TO SUBMIT AN OFFER TO SUBSCRIBE. NO PERSON MAY PURCHASE THE UNITS OFFERED HEREBY EXCEPT PURSUANT TO AN EXECUTED SUBSCRIPTION AGREEMENT IN THE FORM PRESCRIBED BY THE FUND, AND THEN ONLY FROM A PERSON TO WHOM THE FUND OR ITS DESIGNATED AGENT HAS DELIVERED A COPY OF THIS OFFERING MEMORANDUM.

THESE UNITS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY THE FUND. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THERE IS CURRENTLY NO PUBLIC MARKET FOR THESE UNITS.

IN MAKING A DECISION TO PURCHASE UNITS HEREUNDER, PROSPECTIVE INVESTORS MUST CONDUCT THEIR OWN INDEPENDENT INVESTIGATION OF THE FUND AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED, AND ARE ENCOURAGED TO CONSULT WITH THEIR ADVISORS AS THEY WILL BE REQUIRED TO REPRESENT THAT THEY ARE ABLE TO BEAR THE ECONOMIC RISK OF THEIR INVESTMENT AND THAT THEY ARE FAMILLIAR WITH AND UNDERSTAND THE FUNDAMENTAL RISKS AND TERMS OF THIS OFFERING.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION WITH RESPECT TO THE OFFERING OF THE UNITS WHICH IS NOT CONTAINED OR REFERENCED HEREIN, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. POTENTIAL INVESTORS MAY, IF THEY SO DESIRE, MAKE INQUIRIES OF THE FUND WITH RESPECT TO THE FUND’S BUSINESS OR ANY OTHER MATTERS SET FORTH HEREIN, AND MAY OBTAIN ANY ADDITIONAL INFORMATION WHICH SUCH PERSON DEEMS TO BE NECESSARY IN ORDER TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS MEMORANDUM (TO THE EXTENT THAT THE FUND POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE).

March 08 2021

Confidential Offering Memorandum: Harvard Grace Capital Corporation

PROSPECTIVE INVESTORS ARE CAUTIONED NOT TO CONSTRUE ANY CONTENTS OF THIS OFFERING MEMORANDUM OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS, AS CONSTITUTING INVESTMENT, LEGAL OR TAX ADVICE; RATHER THEY SHOULD CONSULT THEIR OWN ADVISORS OR COUNSEL WITH THE CAPACITY TO ADVISE AND PROTECT THEIR INTEREST IN CONNECTION WITH ALL MATTERS CONCERNING THIS OFFERING MEMORANDUM.

THIS OFFERING MEMORANDUM DOES NOT KNOWINGLY CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT A MATERIAL FACT, AND ANY SUCH MISSTATEMENT OR OMISSION IS DONE WITHOUT THE KNOWLEDGE OF THE PREPARERS OF THIS DOCUMENT OR THE FUND. AS SUCH THE FUND BELIEVES THAT THIS OFFERING MEMORANDUM CONTAINS A FAIR SUMMARY OF THE MATERIAL TERMS OF ALL MATTERS, DOCUMENTS AND CIRCUMSTANCES MATERIAL TO THIS OFFERING. WHILE THE DATA AND STATEMENTS CONTAINED HEREIN ARE BASED UPON INFORMATION BELIEVED TO BE RELIABLE, NO WARRANTY CAN BE MADE AS TO THE ACCURACY OF SUCH INFORMATION OR THAT CIRCUMSTANCES HAVE NOT CHANGED SINCE THE DATE SUCH INFORMATION WAS SUPPLIED. THIS MEMORANDUM CONTAINS SUMMARIES OF CERTAIN PROVISIONS OF DOCUMENTS RELATING TO THE BUSINESS OF THE FUND AND THE UNITS OFFERED HEREBY, AS WELL AS SUMMARIES OF VARIOUS PROVISIONS OF RELEVANT STATUTES AND REGULATIONS. SUCH SUMMARIES DO NOT PURPORT TO BE COMPLETE AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE TEXTS OF THE ORIGINAL DOCUMENTS, STATUTES AND REGULATIONS.