Lions Gate Newton, IA

Investment Highlights

• Strong Revenue Growth Opportunity Proven by Historical Performance
• Muted Supply Driving Market Rent Growth
• Best-In-Class Asset with Modern Unit Features
• Unique Pre-Set Tax Increment Financing Benefits
• Prime and Strategic Location with Strong Connectivity
• Offered Free and Clear of Existing Debt

Strong Revenue Growth Opportunity Proven by Historical Performance

The property is well-positioned for continued rent and revenue growth, supported by full occupancy, strong demand, and a measurable loss-to-lease between in-place rents and current market levels. In addition, the implementation of a bulk internet program provides an immediate and scalable revenue stream, generating approximately $80 per unit in income at a cost of $53 per unit. This combination of mark-to-market rent potential and ancillary income creates a clear path to increasing revenue through natural lease turnover and the internet package roll-out.

This forward-looking upside is reinforced by proven performance, as the asset has already achieved a 12% increase in rental income from February 2024 through January 2025 while maintaining strong occupancy - demonstrating both pricing power and operational stability.

Muted Supply Driving Market Rent Growth

Lions Gate benefits from a supply backdrop characterized by limited competitive new construction, which has helped support stable occupancy and rent growth in the Newton market. As a modern, high quality asset completed in 2019, the property is well positioned to capture sustained demand for quality housing without facing near-term pressure from an oversupplied competitive set. This dynamic supports continued revenue durability and reinforces the asset’s ability to maintain strong cash flow over the long term.

Best-In-Class Asset with Modern Unit Features

Lions Gate offers a thoughtfully designed living experience with a premium finish package and resident-focused amenities throughout. Units feature granite countertops, stainless steel appliances, hardwood flooring, in-unit washers and dryers, and walk-in closets. Building-wide amenities include controlled access, high-speed fiber optic internet, a study lounge, and a multi-use community room. These features deliver an elevated standard of living that supports both strong resident retention and continued rent growth.

Amenities