CapitalHive uses a forward-looking approach to evaluate the best use cases for each deal over a 10-year horizon, ensuring alignment with our Opportunity Zone fund objectives.

Evaluation Metrics:

• Projected Cash Flow: Early income potential from rental and lease revenue.

• Appreciation Opportunities: Long-term value gains through renovations, lease-ups, and strategic timing.

• Market Dynamics: Anticipate shifts in demand, rental pricing, and regulatory factors.

• Exit Strategy: Timed to align with optimal market conditions, including the 2034 Olympics and projected exit premiums.

We structure each deal to deliver superior financial performance while maintaining flexibility to navigate unforeseen challenges.

Key Deal Structuring Components:

• Optimal Leverage: Maintain a 70% loan-to-value (LTV) ratio, with interest-only loans in the early years to maximize cash flow.

• Value-Add Strategy: Target improvements that generate immediate returns, such as renovations, operational upgrades, and lease-up strategies.

• Cash Flow First: Ensure assets generate early compounding cash flow to fuel reinvestment and growth.

• Resiliency Planning: Build contingencies into every deal to handle interest rate increases, rental demand fluctuations, and other variables.

At CapitalHive, compliance isn’t just a requirement—it’s a cornerstone of our investment approach. Our regulatory and compliance framework ensures every deal aligns with Opportunity Zone regulations and provides transparency for investors.

Compliance Framework Includes:

• Regulatory Adherence: Maintain 90% of assets within designated Opportunity Zones and align all investments with IRS Opportunity Zone Safe Harbor guidelines.

• Ongoing Monitoring: Regular audits and real-time tracking of all asset and fund performance metrics.

• Transparency: Provide investors with detailed updates and access to live dashboards for full visibility into fund operations.

We prioritize opportunities that offer:

• Early-Stage Cash Flow: Properties with immediate income potential through high lease demand and operational efficiencies.

• Value-Add Potential: Underperforming assets primed for renovations, repositioning, or lease-ups to drive appreciation.

• High-Reward Plays: Long-term investments designed to capture significant upside closer to the fund’s exit timeframe.

Our acquisition and execution process ensures that every deal is meticulously planned, seamlessly executed, and resilient to market changes.

Acquisition Process:

1. Deal Identification: Use data-driven insights to target high-potential properties in strategic locations.

2. Due Diligence: Conduct comprehensive property evaluations, including cash flow projections, market trends, and compliance checks.

3. Best Use Case Development: Create a tailored plan for maximizing each asset’s potential over the 10-year investment horizon.

4. Capital Structure Optimization: Leverage financing to balance risk and maximize investor returns.

Execution Package:

• Flexibility to Adjust: Incorporate adaptive strategies to respond to rate increases, rental demand shifts, or legislative changes.

• Operational Excellence: Implement cost-effective upgrades, streamline management, and focus on tenant retention to stabilize cash flow.

• Exit Strategy Planning: Prepare assets for strategic exits that align with market peaks and fund objectives.