1.Fund Name*

Lynd Living, LLC

2 Investment Dates: 9/2021

3 Asset Class Portfolio Breakdown: Multi-Family

4 Projected Holding Period:  5 years

5 Communication Methods: The platform utilized a comprehensive approach, including:

  • Quarterly Reports

  • Monthly Reports

  • A dedicated website portal where reports were uploaded

6. Effectiveness of Communication – ★★★☆☆ (3 Stars)
Early reporting was problematic and disjointed but the sponsor responded to investor outcry.  Reports were clear and informative, particularly the balance sheets. However, there were instances of over-communication, where updates included excessive detail that didn't enhance decision-making.

7. Tax Reporting – ★★★☆☆ (3 Stars)
K-1s were delivered punctually in some years, while other years saw delays, reducing overall reliability.

8. Investment Plan Execution – ★★☆☆☆ (2 Stars)
Execution of the investment strategy was subpar. ROI failed to meet projections, and holding periods extended significantly beyond the original timeline. Based on performance, I would not reinvest with this sponsor.

9. Holding Period Execution – ★☆☆☆☆ (1 Star)
Holding periods were severely delayed, attributed to various operational and market-related issues. Results did not align with expectations or communication provided during the investment.

10. Return on Investment – ★★☆☆☆ (2 Stars)
Actual returns were well below projected outcomes, contributing to a negative overall experience.

10. Return on Investment – ★★☆☆☆ (2 Stars)
Returns missed initial projections by a wide margin. The outcome was disappointing relative to expectations and market alternatives.

11. Additional Comments

120 W. Josephine Investment Experience

Investment Experience: San Antonio's Broadway Corridor

I invested in the 120 W. Josephine (San Antonio, TX) deal in July 2022, which was managed by LYND Living. This six-story, 261-unit multifamily development project located near the Pearl District seemed attractive given San Antonio was the #12 ranked ULI market in 2021. The sponsor's 40+ year track record and their $1.5B+ in multifamily transactions since 2003 gave me confidence, especially with their 15,000+ units under management across multiple states. Their local San Antonio headquarters felt like a significant advantage for market knowledge.

What initially attracted me was the location play - being less than a quarter mile from the Pearl District transformation was compelling. The fact that an abandoned brewery became a premier destination with the Culinary Institute of America, Hotel Emma (#1 luxury hotel per Condé Nast), and established restaurants showed this area had proven gentrification momentum.

A particularly appealing aspect was the property tax exemption through their partnership with the San Antonio Housing Authority (SAHA) to provide affordable housing. While not an opportunity zone investment, this deal structure would provide 10% of units at 60% AMI and 40% of units at 80% AMI, creating a tax-exempt status that should significantly improve cash flow projections.

The $42 million city bond package specifically for Broadway Corridor improvements gave me comfort that this wasn't just private speculation - there was municipal backing for long-term area development. Plus, seeing major corporate relocations like CPS Energy's $210M headquarters and Credit Human's $112.5M facility suggested sustained demand drivers.

Reality Check:

However, this investment has been significantly more challenging than anticipated. Since my initial investment, we've had 3 capital calls due to construction overruns that weren't properly budgeted for initially. The sponsor did not hit their projected timelines, and the project has been heavily impacted by economic headwinds that dominated the years 2022-2024.

The combination of rising construction costs, supply chain disruptions, and higher interest rates created a perfect storm that LYND seemingly wasn't prepared for. While I understood development risks going in, the frequency of capital calls and timeline extensions have been frustrating.

My Assessment:

The offering materials projected strong returns, including:

Targeted Investor IRR- 21.6%                   Targeted Equity Multiple- 2.6x

Targeted Average Cash Yield  6.7%          Targeted Investment Period   5 Years

Despite the strong location fundamentals still being intact - the Pearl District continues thriving and the city improvements are progressing - the execution challenges have made this a much more capital-intensive and time-consuming investment than projected.

The sponsor has now started conversations around a long-term hold rather than the original stabilize and sell strategy. While this wasn't the plan I initially signed up for, it might actually be attractive given the no property tax benefit - holding long-term could maximize the value of that tax exemption for cash flow generation.

While I still believe in the long-term location thesis, the sponsor's inability to navigate the 2022-2024 economic challenges effectively has been disappointing. The multiple capital calls have significantly impacted my overall returns and tied up more capital than originally planned. Ironically, the property tax exemption that was supposed to boost cash flows hasn't been enough to offset the construction cost overruns and timeline delays.

I'm holding my position given the location advantages and sunk costs, but this experience has made me more cautious about development deals during uncertain economic periods, regardless of sponsor track record. The potential pivot to long-term hold might actually work in our favor if they can finally get operations stabilized and capitalize on the tax-exempt status.  Overall I would not invest with Lynd again.