Overland Reserve

Overland Reserve is a 94-unit ground-up multifamily development situated on approximately 11.5 acres in North Rochester, Minnesota. The project is designed as a two-phase, build-lease-build development that aligns lease-up with ongoing construction, generating cash flow during the build-out while reducing absorption risk. The property features a diversified mix of studio, one, two, and three-bedroom units targeting a market anchored by the Mayo Clinic, the largest employer in Minnesota. The land is fully entitled and shovel-ready, with zoning, architectural drawings, and engineering already complete.

Why This Opportunity

• 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

• Build-lease-build phasing: Two development phases launched six months apart generate rental income during construction, support stronger refinance terms through in-place cash flow, and reduce vacancy exposure at stabilization

• Healthcare-anchored market: Rochester is home to the Mayo Clinic (38,000+ local employees), driving consistent in-migration, a highly educated tenant base, and steady demand for quality rental housing

• Strong market fundamentals: Rochester multifamily reports 95.9% occupancy, 3.4% YoY rent growth, and projected 23.5% rent growth in 2026 supported by constrained new supply and steady population gains

• Proven sponsor playbook: Mailbox Money is actively executing the same build-lease-build strategy across nine developments in the Eastern South Dakota region

• Projected returns: 22.3% target IRR with a 2.12x equity multiple over a 5-year hold, driven by phased lease-up, refinance events, and disposition

Deal Structure

• Total capitalization: $17.86M

• Targeted equity: $5.42M

• Debt: $12.50M at 6.8% interest rate, 75% leverage, 25-year amortization, 5-year term with 3 years interest-only

• Projected Year 1 NOI: $16,647

• Projected Year 4 NOI: $1,272,321

• Return on cost: 5.0%

• Exit cap: 5.0%

• Minimum investment: $50,000

• Hold period: 4 years targeted

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

LP Investor Tiers

Overland Reserve 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, 22.3% IRR, 2.09x equity multiple

• Platinum ($150K+): 7% preferred return, 85/15 profit split, 22.9% IRR, 1.86x equity multiple

• Gold ($80K+): 6% preferred return, 80/20 profit split, 21.8% IRR, 1.82x equity multiple

• Silver ($50K+): 5% preferred return, 75/25 profit split, 20.5% IRR, 1.77x equity multiple

Project Details

• 94 total units across two phases

• Unit mix: 13 studios (534 SF), 53 one-bedroom (608 SF), 21 two-bedroom (1,022 SF), 7 three-bedroom (1,111 SF)

• Average unit size: 728 SF

• Projected effective rents: $1,263 (studio) to $1,870 (3BR), average $1,497/unit

• Phase 1 buildings: four 14-unit buildings and one 10-unit building

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

• Target operating expense ratio: 28-35%

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

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