Radiant Active Adult — JAK F&F Equity Opportunity

What This Opportunity Is

📋 What You're Funding

JAK's Initial Development Costs — land loan debt service, property taxes, insurance, permits, engineering, entitlements, architecture, and legal fees. Your capital becomes JAK's LP contribution to the Radiant JV entity.

💰 What You Get

At Construction Loan close, your investment converts to an LP equity position — pari passu with institutional equity investors. Plus a 15% kicker on JAK's promote — a higher kicker than Mayfair, reflecting the project's scale and upside.

🏘️ Active Adult Market

214-unit active adult community on Williams Drive, Georgetown TX — one of the fastest-growing submarkets in the Austin MSA. Strong demographic tailwinds: 55+ population growth, limited institutional supply, sticky long-term tenancy.

📅 Timeline

~6 months pre-development (capital at work, no pref). Construction Loan closes → pref begins accruing. Construction ~20 months. Stabilization and exit at ~3.5–4 years from F&F close.

💵 Minimum & Raise Target

$50,000 minimum. Capital called in 3 tranches over ~3 months. Total F&F target for Radiant: $800,000. Allocation subject to availability.

🛡️ Downside Protection (JV §5.2)

JAK holds a contractual lien on the property. If the land is sold before Construction Closing, JAK (and therefore F&F investors) must be fully reimbursed for all Initial Development Costs plus a pro-rata share of any land sale proceeds. Not typical pursuit capital.

Why Radiant

📊 Georgetown TX — Active Adult Demographics

Georgetown is one of the fastest-growing cities in the US and a top-ranked retirement destination. Williams Drive is a primary corridor with strong institutional interest and limited purpose-built active adult supply. The Radiant JV (with Novak as landowner, agreed land value $5,500,000) positions JAK as Developer/Manager on a ~$49.8M TPC project with an LP project-level IRR target of ~22.7%. F&F investors share in that upside with a 15% promote kicker — the highest kicker in the JAK F&F round.

Target Returns

F&F LP Estimated Returns — Radiant Active Adult

F&F LP IRR

~18–22%

Estimated; slightly below project-level due to pre-dev timing

Equity Multiple

~1.7–1.9x

Over ~3.5–4 year hold

Preferred Return

8% p.a.

Accrues from Construction Loan close — same as institutional

Promote Kicker

15%

Of JAK's promote — highest kicker in the F&F round

JAK Est. Promote

~$2.9M

From AFJV model — subject to final waterfall terms

Hold Period

~3.5–4 yrs

From F&F close to exit/distribution

Returns are estimates based on current AFJV pro forma. Not a guarantee. Promote kicker of 15% only materializes if JAK earns a promote (project must hit return thresholds in the waterfall). Consult your own advisors.

How the Structure Works

1

Pre-Development (~6 months) — No Pref Accrual

F&F capital funds JAK's Initial Development Costs (IDC): land loan debt service, taxes, insurance, permits, engineering, entitlements, architecture, legal fees. This is JAK's developer contribution to the project.

No preferred return accrues during this phase. Capital is at work, not sitting idle.
2

Construction Loan Closes — Conversion Event

Landowner (Novak) contributes the Property at agreed land value ($5,500,000). JAK contributes the accumulated IDC (F&F money) as its capital. Construction loan closes (~60% LTC). Institutional equity fills remaining ~40% LTC. F&F capital stays in the deal as JAK's LP position — pari passu with all other equity.

⭐ Preferred return begins accruing at 8%/yr from this date.
3

Construction, Lease-Up, Stabilization (~20–24 months)

Pref accrues on F&F capital throughout construction and lease-up. JAK manages the project as Developer/Manager. No distributions during construction.
4

Stabilization & Exit (~Month 40+)

Project stabilizes. JV distributes: preferred return first → LP pro-rata capital return → promote waterfall. F&F LLC receives its LP economics plus 15% of JAK's promote — incremental upside above the base LP return.

Downside Protection

🛡️ JV Agreement Section 5.2 — Contractual Lien Protection

F&F capital is protected by a contractual lien on the Property held by JAK under the JV Agreement (§5.2). In the event the project is terminated prior to construction (e.g., Novak sells the land):

(a) Novak must reimburse JAK for ALL Initial Development Costs (the full F&F investment), AND
(b) JAK is entitled to a pro-rata share of any land sale proceeds.

This means F&F investors are not exposed to total loss in a pre-construction termination scenario — unlike typical at-risk pursuit capital. This is a meaningful structural protection baked directly into the JV.

Note: Returns and recovery are still not guaranteed. The land sale price, timing, and legal enforcement all affect actual outcomes. Investors should review the PPM and consult their own legal and financial advisors.

Next Step — Request Full Materials

Andy Heard

aheard@highside-re.com | JAK Development Group

📬 Request Full PPM & Pro Forma →