Investor Update: Full Speed Ahead—Lilac Way Nears Completion as Occupancy and Revenue Accelerate

As we cross into the final phase of renovations at Lilac Way, the momentum behind this project continues to build. With core buildings nearly finished, strong short-term rental performance in the off-season, and market demand showing no signs of slowing, Q1 2025 is shaping up to be a milestone quarter for our investment strategy in Wyoming.

In this quarterly update, we’ll explore:

Our progress toward full unit renovations and leasing
Revenue trends in short- and medium-term rentals
Market insights from Evanston’s city planning data
The final capital raise and refinance outlook
New opportunities for long-term investors

Let’s dive in.

Renovation Progress: Ahead of Schedule and on Budget

Finalizing Key Buildings

Work in Buildings 105 and 107 is now substantially complete. Building 105 added a new common laundry room and wrapped up unit finishes. Several more units in 107 are finished or near completion.

Importantly, we are on track—or even slightly ahead—of schedule. Our initial goal was to complete all units by the end of Q1, with leasing efforts ramping up through Q2. This would position us well to pursue a 2025 refinance, which many lenders require to follow a 90-day period of 90%+ occupancy. With our current pace and strong tenant interest, that goal remains fully in sight.

Rental Demand Supports Strategy

Even the smaller units in 105, which range from 600–700 square feet, have performed better than anticipated. Rents of $1,095 and $1,195 were achieved despite their compact size, thanks to fresh renovations and a scarcity of comparable housing in the area.

Short-Term & Furnished Rentals: Off-Season Success, Summer Optimism

Six Furnished Units Active

We now have six furnished units live, and despite it being winter—a traditionally slow period for short-term rentals—January revenue was strong, with bookings already trickling in for March. February is naturally a bit slower, but we’re encouraged by the off-season performance.

Meeting—and Exceeding—Projections

Our base case projected $1,800/month per unit, and we’re already hitting those numbers. Many furnished tenants are blue-collar workers, often with per diems or housing stipends, seeking low-cost and shared options. Some opt to share rooms to save money, a trend that led us to pilot a co-living model with room-by-room rentals in a three-bedroom unit.

Medium-Term Strategy Expands

While some leases are short-term, we’re increasingly signing 3-month to 12-month leases with companies, providing workers with predictable, furnished housing. These medium-term rentals (MTRs) continue to deliver strong yield and lower turnover, making them a sweet spot in our strategy.

Final Capital Raise: $150K to Complete the Vision

As planned, we’ve raised capital in tranches, only when needed. This keeps the 15% return-on-capital efficient and ensures no idle funds. We’re now entering the final capital raise of $150,000 to wrap up the remaining units and finalize the repositioning.

This is an easier raise than earlier rounds—thanks to the completed units, rental performance, and visual proof of our strategy in motion.

Note: Per our operating agreement, this final tranche will also receive the 15% annual return previously agreed upon.

Market Outlook: Evanston’s Growth Confirms Our Thesis

City of Evanston’s Housing Report

Recent reports from the City of Evanston underscore the strength of our investment thesis. With the Terra Power Plant (Bill Gates–backed) just 40 miles away and additional multi-billion-dollar Trona mining operations in the region, demand for housing continues to surge.

Evanston currently faces a projected shortfall of 500–1,100 housing units by 2031. In a city of just 11,000 residents, that represents up to 10% of the population in housing demand—an extraordinary figure.

Strategic Location: Interstate Access and Urban Proximity

Evanston sits along I-80, just an hour from Salt Lake City and 45–60 minutes from Park City. Workers who can’t afford Utah housing increasingly commute from Evanston, driving up rental demand while preserving affordability.

What’s Next: Refinancing, New Projects, and an Equity Opportunity

Refinancing Still Targeted for 2025

We continue to push toward a refinance in mid-to-late 2025, pending lender timelines and occupancy stabilization. Additional crew from Casper has accelerated renovations, and we anticipate strong leasing demand as warmer months arrive.

Exploring a New 120-Unit Deal in Evanston

We’re actively exploring a new 120-unit acquisition in the same market. The property is stabilized and operated competently—but we see upside in both rents and management.

Introducing Our New Equity Fund

While Lilac Way was structured as fixed debt, we are now raising for a new equity-based fund with a 5-year hold period and a projected IRR of 20–21%. This vehicle is designed to:

We introduced this offering at a recent Pace Morby & Matt Sorenson conference in Scottsdale, receiving strong feedback from experienced investors and operators.

Final Thoughts

Lilac Way continues to outperform expectations in a market that’s proving more resilient—and more strategic—by the day. As we near completion, occupancy increases, and rental income strengthens, we remain committed to delivering strong, stable returns for our investors.

Thank you for your continued support. Please reach out with any questions, or to express interest in our final capital raise or new equity opportunity.