Detroit, Michigan | Urban Revitalization

Back the Detroit Comeback with Century Partners

Back Century Partners to revitalize Detroit’s historic neighborhoods. Own a piece of the comeback and earn strong financial returns.

Currently available to US residents of:
California, Colorado, Illinois, Michigan, Mississippi, New Jersey, New York, Pennsylvania, and Washington, DC.

the story

Detroit is on the comeback, and partners David Alade and Andrew Colom of Century Partners want you to invest in it. CP buys blighted homes, rehabilitates them using local contractors and sources buyers and select renters for a real return. Because quality housing in Detroit is limited, the few clean, affordable units available are often inaccessible. CP expands the quality housing market with sustainably revitalized homes.

The real beauty of the Century Partners model is its potential for local wealth creation. Anyone, including the residents of neighborhoods they invest in, can own a part of these refurbished homes through fund investment. CP has already deployed over $2.2MM of equity to purchase and rehabilitate 35 abandoned or underutilized housing units. What’s more, less blight means greater property values, enabling home-owning neighbors to accelerate their own home appreciation while earning rental income from the house next door.

the story

The Detroit Comeback

Detroit is on the comeback, and David Alade and Andrew Colom of Century Partners invite you to be a part of it. Century Partners is working to breathe new life into blighted neighborhoods in Detroit and democratize access to property ownership, giving anyone a chance to invest in the rehabilitation of historic Detroit neighborhoods through fund investment. Over the last two years, they’ve deployed $3.4M of equity to purchase, rehabilitate and / or lease over 60 abandoned or underutilized housing units, tackling the issue of blight and the shortage of quality family housing head-on.

Soon, they’ll be seeking to raise $550,000 to sustainably renovate to lease or sell single and multifamily homes in the Boston Edison, East English Village, and North End districts and continue rebuilding Detroit.

By investing in this project, you’ll join the project founders in revitalizing historic neighborhoods through property renovation and management, and you’ll become a stakeholder in Detroit’s renaissance.

 
 

the project

Detroit: The Comeback City

Excitement about the Detroit Comeback is spreading. That’s partly because Detroit offers investors—property owners in particular—some of the strongest ROIs (return on investment) in the U.S. Detroit has faced hardship due to the pressures of globalization, political instability and racial tension. These factors contributed toward population decline and abandoned homes, which fueled crime, poverty, and declining property values. But investment and community action are driving change.

Investors already have put billions of dollars into greater downtown development projects, like a new basketball and hockey arena and the city’s first modern light rail system. Up to 5,000 residential units are scheduled to come to market in the next two years. Quicken Loans’ founder Dan Gilbert has invested $2 billion in the acquisition and renovation of nearly 90 buildings in downtown Detroit since 2011, and the city is rallying around the return of their NBA team, the Detroit Pistons, to the downtown area. Technology giants, Microsoft and Amazon, are following suit by relocating offices and building a Detroit workforce. D-Town is back.

use of funds

Invest in what you believe in.

Century Partners wants to focus on acquisitions and renovations in the North End, Boston Edison and East English Village areas. These neighborhoods are close to major commercial corridors in Detroit, and are adjacent to tree-lined avenues of beautiful historic homes. These areas have been challenged by gradual deterioration over several decades, however, Century Partners is now focused on increasing population density and providing quality housing where it existed historically. The team approaches renovations in the spirit of preservation—they aim to embrace the fabric of the community, not alter it.

Century Partners is currently developing its portfolio of 63 housing units across three neighborhoods. Many of these homes were abandoned, dilapidated houses. Century Partners purchase the properties in cash from government entities, banks and individuals at discounted prices from $10,000 to $75,000. With the funds raised through rabble, Century Partners will rehabilitate 32 single and multi-family units already owned. Renovation budgets typically range from $20,000 to $125,000 per housing unit and take three to six months.

Century Partners employs an underutilized group of skilled local builders. The properties are then rented or sold to a professionally, ethnically and income-diverse group that includes graduate students, medical workers, technology workers, young professionals and artisans with verified income. Moreover, the rehabilitation projects are delivering investors a solid return. And though CP’s efforts will result in increased neighborhood-wide property values, their track record shows: no evictions, no displacements or rent increases for inherited tenants.

 
 

the team

David Alade, Andrew Colom, and Kimberly Dowdell

It’s worth noting that founding partners Andrew Colom and David Alade aren’t from Detroit. What drew them to the city is the same thing bringing investors to their project: an opportunity too good to pass up in a city central to American history.

After co-founding Century Partners in 2014, Andrew moved to Detroit in February of 2015, already an accomplished real estate developer with more than 300 units in his portfolio. He has experience in all facets of real estate: from small to large scale renovations to new home construction and property management and real estate accounting. He’s also a writer with a background in film production and theatre. First, he saw a real estate development opportunity. Then, he fell in love with the story of Detroit and decided to become a part of it.

David, a close friend from Columbia University, was not far behind, moving to Detroit in May of 2015 to collaborate with Andrew. Prior to forming Century Partners, David spent six years in investment banking at Barclays Capital and Credit Suisse. David facilitated over $100BN in financing for mid-size to Fortune 500 companies, including tens of billions of dollars for the finance arms of the Big 3 US auto companies: Ford, GM and Chrysler.

Kimberly Dowdell joined Century Partners as a partner in 2017. Born and raised in Detroit, Kimberly worked as an architect and real estate project manager in New York and in Washington, D.C. for nearly a decade after graduating from Cornell University. She moved back to Detroit in 2015 upon graduating from Harvard’s Kennedy School to dedicate herself to the city’s revitalization, a goal she had set for herself twenty years earlier. Kimberly worked for the City of Detroit in its Housing and Revitalization Department as an Executive Manager of Public Private Partnerships prior to joining Century Partners.

These three know what it means to #backthecomeback through real estate development, financial inclusion and community advocacy. They have been doing it for years. Now it’s your turn.

details

  • Preferred Equity

    Investment Type

  • 11%

    Minimum Target IRR

  • Beg. October 2019

    Quarterly Dividend

  • October 2022

    Exit

  • $550,000

    Fundraise Amount

  • 8%

    Preferred Return

  • 5 Years

    Term

  • October 2019

    Early Exit Option

Your investment in Rabble One Series A is considered a preferred equity investment. Though Rabble cannot predict nor guarantee the amount investors will earn, should the investment perform as anticipated, there will be two parts to your returns. Please read the offering circular for a full discussion of all of the relevant investment considerations before making an investment decision.

Part 1: similar to a debt investment. You’ll earn a return of 8% per year on your original investment (the principal) through October 2019, the conclusion of the Fund Lockout Period You’ll receive this payment (the “Preferred Return”) as a one-time cash dividend only after the Lockout Period, which ends October 2019. After your Preferred Return is paid in full, the Fund will repay your principal.

Part 2: similar to an equity investment. After your principal has been fully repaid, you will receive a share of the project’s profits. 50% of the cash-flows will be divided among investors in proportion to the amount of each individual’s investment. Century Partners will earn the other 50%.

Exit
: In October 2022, if Century Partners sells the homes acquired with Rabble One Series A funds as planned, you will be able to exit the investment, allowing you to earn a portion of the home sales if they have appreciated beyond Century Partners’ original purchase price. Investors who choose to exit between October 2019 and October 2022 will receive their original investment back, but will not receive the appreciation. (For more details see the put right). The above overview is a partial waterfall (note: a cash-flow waterfall describes who or what gets paid first when rental income or money from selling houses comes in; to review the complete waterfall, refer to the offering circular).

Target Returns (October 2022) For those who hold onto the investment for the duration of the investment, the target returns are 11% IRR. IRR means that the cashflows you would receive within a five year period are estimated to return a minimum target of 68% in five years time but please note that actual performance may vary. This is based on Part 1, Part 2, and Exit described above. You should carefully review the offering circular before making any investment.

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view offering circular

historical returns

The Rabble One Series A investment shares the investment objectives and will be operated and managed in the same manner as Detroit Real Estate Value Fund II, a fund that Century Partners currently manages. From first quarter of 2015 to first quarter of 2016, Detroit Real Estate Value Fund I, Century Partners first fund, has generated average dividend yields of approximately 8% per year. In third quarter of 2016, Century Partners distributed an 8% annualized preferred return dividend to investors immediately following that fund’s 18-month lockout period. In an hypothetical portfolio of $10,000 invested in Fund I, $1400 dividend was paid to the investor in third quarter of 2016 ($1,200 accumulated during the 18-month lock-out period plus the $200 dividend for the third quarter of 2016).

Please note, past performance may not be an indicator of future results.

impact

 
90
NEW RESIDENTS
60
thousand sq ft of abandoned property rehabilitated
0
neighbors displaced
 

Century Partners is tackling the issue of abandoned homes in Detroit. The 50,000 vacant houses in Detroit have taken an economic and social toll on the city. The abandoned homes pulled down property values, sent a message that Detroit is not worthy of investment, and fueled crime. However, in the last few years, Detroit has started to turn the corner, and Century Partners has been leading the way. Soon, Century Partners will convert 10-15 vacant houses into fully rehabilitated and beautiful rental homes that 90 new residents will call home.

The result? Economic vitality – and zero displacement – in neighborhoods that have been overlooked and under-invested for the past 50 years. The benefits are measurable — through their activities, Century Partners will rehabilitate over 60,000 square feet of property. In the process, Century Partners hires local contractors and provides fair-paying jobs to businesses that are the bedrock of the community.

Century Partners also helps stabilize the city’s population growth. Their high quality housing attracts new people from the suburbs and downtown areas into neighborhoods they hadn’t previously considered. More residents will encourage existing businesses to grow, hire, and open their doors. A thriving neighborhood supports local residents, too. It incentivizes people to maintain their homes. And it preserves wealth for local homeowners, whose home value is the key to retirement and stability.

Have a question? Ask the Project Founder.

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