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Investment Overview
UMusic Row:
Huntsville's Cultural Center
RCP Companies is excited to partner with Universal Music Group, the largest music entertainment company in the world, to bring the nation's first activated UMusic Hotel to anchor UMusic Row - a dynamic, cultural subdistrict within the noteworthy MidCity District mixed-use development.
Development Phases
The early Phase I opportunity allows for land purchase, completion of entitlements and public partnership prior to vertical equity raise, allowing the early investor the ability to enter into the construction/operating phase pari passu to the sponsor, that is, without being subject to the sponsor promote (ie - carried interest of RCP).
Phase I: Pre-Development
- Investment: Q1 2024
- 5.95 acres in established district
- All equity, secured by entitled land
- Land acquired below market value
- Pari passu, no sponsor promote
Phase II: Development
- Investment: Q1 2025
- Phase I 20% contribution markup
- Universal Music Group partner project
- Over $50M in state & local incentives
- +3x LP equity multiple over 7 years
Targeted Returns
*For Phase I LPs who contribute their investment to Phase II.
22%
LP IRR
3.4x
LP MOIC
7 yrs
Return of Capital
Investment Details
Phase 1
Equity Raise
$12M
Product Type
Entitled Land
Sponsor Commitment
10%
Promote
-
Exit Option
20% IRR | 1.2x MOIC
Contribution Option
20% Markup on Investment
Phase 2
Equity Raise
$46M
Product Type
Hospitality, Mixed-Use
Hold Period
5-7 Years
Sponsor Commitment
5%
Promote
25% Over 8%
30% Over 12%
40% Over 15%
30% Over 12%
40% Over 15%
Target LP IRR
20% IRR (22% Phase I LP)
Target LP MOIC
2.9x (3.4x Phase I LP)
Phase 1
Equity Raise
$11M
Product Type
Entitled Land
Sponsor Commitment
10%
Promote
-
Exit Option
20% IRR | 1.2x MOIC
Contribution Option
20% Markup | $14M Value
Phase 2
Equity Raise
±$50M
Product Type
Hospitality, Mixed-Use
Hold Period
5-7 Years
Sponsor Commitment
TBD
Promote
TBD
Target LP IRR
20% IRR (22% Phase I LP)
Target LP MOIC
2.9x (3.4x Phase I LP)
Timeline
