Viking Capital Newsletter September 2024

Viking Capital is excited to announce our 30th investment offering, The Townhomes at BlueBonnet Trails, a 114-unit Build-to-Rent community located in Dallas-Fort Worth metroplex. As our readers know, this is the year to a $1Billion under Management and no capital calls ever, and Viking Capital is one step closer to reaching our goal.

This marks our fifth deal under contract for 2024, and while it may be our final one, we are actively searching the nation for one more opportunity.

As always, if you have any questions, do not hesitate to reach out to our Investor Relations Team.

Onward & Upward,

The market is gaining momentum, as Freddie Mac’s Apartment Investment Market Index surged by 8.7% in the first quarter, signaling strong confidence in the multifamily sector.

What this is beneficial for our investors:

Increased Property Values: Rising confidence in the multifamily sector can lead to higher property valuations, enhancing the long-term appreciation of investments.
Greater Rental Demand: As the sector gains momentum, demand for multifamily housing increases, leading to higher rental income.
Stronger Cash Flows: The combination of higher returns and increased rental demand creates reliable cash flows for investors.

The e recent $1.73 billion multifamily acquisition signals major opportunities for investors looking to capitalize on current market conditions. With interest-rate disruptions and short-term oversupply, this environment presents a unique window for strategic investments in multifamily properties.

Key Takeaways:

Increased Confidence in Multifamily: Large acquisitions in the sector, like this one, reflect growing confidence in the long-term fundamentals of multifamily real estate, making it an attractive asset class for investors.
Opportunities in Key Markets: The focus on well-located properties in high-growth areas and surrounding submarkets offers investors diverse opportunities to gain exposure to markets poised for appreciation.
Navigating Market Cycles: The current market disruption creates openings for savvy investors to acquire core-plus and value-add properties at favorable prices, with the potential for strong returns as the market stabilizes.

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With new episodes airing in November, each installment provides expert insights, market trends, and actionable strategies to empower your wealth journey. Featuring engaging interviews from industry professionals and a focus on real-world applications, wealth {un}filtered equips you with the knowledge you need to make informed financial decisions and stay ahead in today’s fast-paced financial landscape.

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Viking Capital is excited to announce the completion of major renovations at Elevate Huebner Grove, following similar upgrades at Greene and Kings Cove earlier this year. These renovations are part of our ongoing efforts to enhance properties across our portfolio to force appreciation for our exits.

Quarterly reports will be distributed at the end of this month. Keep an eye out for them in your inbox.

One effective strategy for real estate investors is using a cost segregation study. Here’s how it can benefit you:

What is Cost Segregation?: A tax strategy that accelerates depreciation for real estate, boosting cash flow and reducing tax burdens on rental income.
Depreciation Breakdown: Multifamily properties usually depreciate over 27.5 years. Cost segregation accelerates this by categorizing items like carpeting, lighting, and landscaping for faster depreciation.
Key Benefits:
- Enhanced Cash Flow: Save on taxes now and reinvest for future growth.
- Time Value of Money: Accelerate deductions and recoup investments faster.
- Lower Tax Burden: Maximize passive losses and reduce taxable income.
- Bonus Depreciation: For 2024, we have 60% bonus depreciation on qualified assets, offering significant tax savings on newly acquired properties despite the phase-out of 100% bonus depreciation.