Foss Fields

Foss Fields is a 500-unit ground-up multifamily development situated on a 300-acre master-planned community in East Sioux Falls, South Dakota. The master development is positioned at the nexus of Sioux Falls' next major commercial corridor and will ultimately include residential, senior housing, multifamily, office park, retail, and healthcare components, creating a true live-work-play environment. Foss Fields is being developed using the same phased build-lease-build strategy Mailbox Money has successfully executed across seven concurrent developments in the Sioux Falls MSA. The land is fully entitled and shovel-ready.

Why This Opportunity

• Supply-constrained submarket: Sioux Falls housing starts are down 52% from 2022 and 20% from 2023, creating a widening gap between housing demand and new supply

• Build-lease-build phasing: Each phase begins approximately six months apart, generating cash flow during construction, supporting stronger refinance terms through in-place income, and reducing absorption risk at stabilization

• Shovel-ready with entitlement risk removed: Mailbox Money partnered with Veldhouse Companies to complete all zoning, architectural drawings, and engineering before investor capital is deployed, allowing vertical construction to proceed without permitting or zoning delays

• Master-planned community: Foss Fields sits within a 300-acre master development in East Sioux Falls with planned residential, commercial, healthcare, and retail components, supporting long-term value creation through live-work-play density

• Strong market fundamentals: Sioux Falls MSA population has grown 14.5% since 2020, with 1.5% unemployment, 6.3% wage growth, and 3.6% YoY multifamily rent growth

• Conservative underwriting in current rate environment: The development was stress-tested at current (higher) interest rates, with potential refinance upside not underwritten into the base case, preserving conservatism

• Projected returns: 22.6% target IRR with a 1.90x equity multiple over a 4-year hold

Deal Structure

• Total capitalization: $81.36M

• Targeted equity: $28.48M

• Debt: $52.88M at 7.5% interest rate, 65% leverage, 25-year amortization, 5-year term with 5 years interest-only

• Year 1 NOI: $651,391

• Year 4 NOI: $4,289,074

• Return on cost: 8.0%

• Exit cap: 5.5%

• Minimum investment: $50,000

• Hold period: 4 years targeted

• Offering: 506(c) Reg D, accredited investors only

LP Investor Tiers

Foss Fields offers a tiered investor class structure with preferred returns and profit splits scaling with commitment size:

• Institutional ($1M+): 8% preferred return, 90/10 profit split

• Platinum ($150K+): 7% preferred return, 85/15 profit split

• Gold ($80K+): 6% preferred return, 80/20 profit split

• Silver ($50K+): 5% preferred return, 75/25 profit split

Project Details

• 500 total units across multiple phases

• Unit mix: 20 studios (500 SF), 260 one-bedroom (600 SF), 140 two-bedroom (854 SF), 80 three-bedroom (973 SF)

• Average unit size: 697 SF

• Projected effective rents: $1,025 (studio) to $1,475 (3BR), average $1,286/unit

• 24 units per building across all phases

• Wellness-focused, no-frills design optimized for construction cost efficiency

• Target operating expense ratio: 28-35%

• Construction cost: $130K-$140K per unit

• Construction timeline: 2024-2026

Timeline

• 9-12 months: First building delivered and occupied, with additional buildings coming online in 12-month increments

• 12-24 months: Achieve cash flow and initiate dividend distributions

• 24-48 months: Complete first refinance event

• 48-120 months: Execute sale with 1031 exchange opportunities