252 Class A Units at the Front Door of Purdue Research
Park.
Built for Yield First.
Class A, 2020-built professional & workforce rental in West Lafayette, IN — not student housing. SK hynix’s $3.87B facility is rising a half mile away, two new hospitals are under construction next door, and Indiana’s property tax schedule works in our favor for the entire hold.
$100,000 minimum · Accredited investors only · Target close: August 31, 2026
Securities offered pursuant to SEC Regulation D, Rule 506(c). This is not an offer to sell or a solicitation of an offer to buy securities. For accredited investors only.
252 Class A apartments, built in 2020, in West Lafayette, Indiana — a half mile from SK hynix’s $3.87B advanced-packaging facility and adjacent to $414M of new hospital construction. Indiana’s SB1 deduction schedule means property taxes decline over our hold: $1,065,434 in projected savings. 8% preferred return, a flat 80/20 split, and a 14–16% target LP IRR — led by an 8.01% average cash-on-cash yield.
Investment Thesis:
Four Structural Advantages
The Century is not a speculative bet on a single employer or thesis. It has four independent return drivers, each of which works on its own — and the biggest demand catalyst in the market isn’t even in our base case.
Yield, Structurally Protected
Market & Growth Runway
Operational Edge
Income Already Accelerating
Basis Below Replacement Cost (Per Door)
We’re buying 2020 Class A construction for materially less than it would cost to build the same asset today.
20–28% below replacement
Property Snapshot:
252 Units · Built 2020 · Purdue Research
Park
The Century is a 2020-built Class A community at 3483 Apollo Ln, West Lafayette, IN 47906 — 252 units on 10.65 acres in the Purdue Research Park corridor. A professional & workforce rental community, not student housing, with a unit mix weighted to two-bedrooms.
Unit Mix
Average market rent of $2,008 vs. average in-place rent of $1,940 — organic upside embedded in the current rent roll.
Property & Amenity Gallery
Interior Gallery
Community Amenities
Institutional Class A amenity set, 2020 vintage — competing at the top of the West Lafayette market.
Planned $800K Curb-Appeal & Amenity Program
Funded from the $862.5K CapEx reserve and underwritten at zero rent premium — any lift is upside.
Built by Operators,
Not Just Allocators
Gray Capital is a vertically integrated private equity firm — we underwrite, acquire, manage, and exit every asset in-house. The result is an asymmetric return profile: downside protected by declining Indiana property taxes, 10-year fixed-rate agency debt, and an 8% preferred return — upside driven by ~8,500 high-income jobs arriving within miles of the property during our hold.
Achieved during 2024–2025 — the toughest supply cycle in a decade, when national rents were flat to declining (<1%/yr). Gray Capital's vertically integrated operations delivered +3.51% in 2024 and +5.46% in 2025 same-store, outperforming the national market by ~3.5 percentage points annually.
Past performance is not indicative of future results. The 29% average net IRR reflects realized returns across exited investments and is not a guarantee of future returns on this or any offering.
Flats at Stones Crossing
Class A · 292 Units · Greenwood, IN · Acquired October 2025
Gray Capital is a vertically integrated PE firm headquartered in Indianapolis. We underwrite, acquire, manage, and exit every asset in-house — keeping operations, accountability, and alignment under one roof.
Deal Structure & Fees
Transparent alignment — we win when you win.
1.00% Asset Mgmt of EGR
50% deferred to exit
3.00% Property Mgmt of EGR
Self-managed · 50% deferred
None Construction Mgmt Fee
$0 Investor Losses* · $0 Capital Calls* · 500+ Active Investors
*Based on Gray Capital investments from 2015 to present. Past performance is not indicative of future results.
How It Works
From interest to investment in five simple steps.
A Structural Tax Advantage,
Written Into Indiana Law.
The Century has no tax abatement — it doesn’t need one. Under Indiana’s SB1 framework, our model runs two parallel property tax calculations — the deduction schedule and the regular 2% cap — and applies whichever is lower in each year. The result: property taxes that decline over the hold on a schedule set by state law, not by a negotiated agreement that can expire or fail to transfer.
Method: Gray Capital underwriting model (June 2026) runs the Indiana SB1 deduction schedule and the regular 2% cap in parallel and applies the lower amount each year. · Cost segregation: Study not yet complete; no Year-1 deduction estimates are quoted. · Disclaimer: Tax estimates are illustrative and not tax advice. Tax laws are subject to change. Consult your tax advisor for individual impact.
“Fantastic reporting! Another syndication I’m an LP with provides a single email with a brief update. Your updates and reporting are top shelf.”
Robert McDonald
Gray Capital Investor
“Very happy with my Gray Fund investment! Thoughtful strategy and solid returns. I appreciate the regular updates, on-time distributions, and the overall communication.”
Cathi Scalise
Gray Capital Investor
“Gray Capital has been the highlight of our investment portfolio. The team communicates well and often with investors which is a definite plus.”
Denise Costello
Gray Capital Investor
~8,500 New High-Income Jobs Landing in a Market With Limited Class A Supply.
West Lafayette is anchored by Purdue University — 57,310 students, up 12% year over year — and the Purdue Research Park, home to 200+ companies and 6,000+ high-skill jobs. Now the largest private investment in Indiana history is breaking ground a half mile from The Century, and $414M of new hospital construction is rising next door. The Century sits in the middle of all of it.
The Demand Catalysts
Arriving During Our Hold Period
Our base case assumes none of SK hynix’s demand. Beyond the committed $3.87B, there is industry chatter about a potential additional $1–2B facility and further hiring on the same site. If that materializes, sustained rent growth above 4–5% and cap-rate compression become plausible — but we underwrite it at zero. Potential, not base case.
Purdue Research Park:
The Innovation Anchor Next Door
200+ companies and 6,000+ high-skill jobs in defense, aerospace, and advanced manufacturing — a stable, high-income renter base that predates SK hynix and keeps growing on its own.
Professional & Workforce Rental. Not Student Housing.
The Century’s 892 SF average units — 52.8% of them two-bedrooms — serve the researchers, engineers, healthcare workers, and university professionals who power this market. Purdue’s ~5,500 graduate and professional renters plus the Research Park workforce form the resident base today; SK hynix and hospital staff arrive on top of it.
The high-income employment base anchoring resident demand — today and arriving during our hold.
Also in the submarket: Birck Nanotechnology Center · Indiana Manufacturing Institute. “Arriving” denotes publicly announced facilities under development in the submarket (not tenants of, or partners with, The Century or Gray Capital); “formerly Adranos” reflects Anduril’s 2024 acquisition of the West Lafayette operation. Logos are the marks of their respective owners, shown solely to identify area employers — not an endorsement of, or affiliation with, this offering.
SK hynix and hospital construction workforces on site, half a mile from our front door.
Hospital openings, facility staffing, and the ramp to mass production in H2 2028.
Suppliers, spinoffs, and the maturing advanced-packaging cluster around Purdue.
Our August 2026 close and 7-year hold (through August 2033) are positioned to capture all three.
Sources: Purdue University enrollment reports; SK hynix and State of Indiana public announcements; IU Health and Parkview Health announcements; Gray Capital Research, June 2026.
252 units. ~8,500 jobs arriving. Property taxes that decline by
law.
Sometimes the thesis is simple.
Buy Below Replacement.
Before the Demand Wave Lands.
We’re acquiring The Century at $230,754 per door — 20–28% below what it would cost to build the same asset in 2026 — while the property’s income is already inflecting upward and ~8,500 new jobs are about to land nearby. The window between “income accelerating” and “everyone can see it” is the window we’re buying in.
Source: Seller T-12; Gray Capital Underwriting Model, Jun 2026
Source: CoStar Lafayette MSA; 2026 construction cost estimates
Source: Gray Capital Underwriting Model (SB1 Deduction Schedule)
Trailing-12 NOI: $2,694,962. Year-1 pro forma: $3,356,268 — deliberately set between the trailing-6 and trailing-3 month run rates. We underwrote below the property’s current trajectory.
Bottom line: The base case — 15.11% LP IRR, 2.40x equity multiple, 8.01% average cash-on-cash — is underwritten on in-place operations, Indiana’s deduction schedule, and a 5.75% exit cap. It does not require SK hynix. The $3.87B facility, any second phase, and the jobs that follow are additive upside — not the base case.
Sources: Gray Capital Underwriting Model (June 2026); seller T-12 financials; CoStar Lafayette MSA.
We underwrite a range, not a point estimate.
The Century targets a 14–16% LP IRR and a 2.40x equity multiple over the 7-year hold — led by an 8.01% average cash-on-cash yield. Treasuries and investment-grade bonds offer yield with no upside; The Century is built to pay a meaningful cash yield and deliver 80% of the appreciation above an 8% preferred return.
Underwritten on in-place operations, the Indiana deduction schedule, and conservative rent growth. No SK hynix demand included.
The downside-protected case. With assumptions stressed further, the projected LP IRR still sits well above the 8% cumulative preferred return — the structural tax advantage and fixed-rate agency debt do the defensive work.
8% cumulative preferred return → return of capital → 80/20 LP/GP split above the pref. No GP catch-up. No IRR hurdle tiers. LPs keep 80 cents of every upside dollar at every performance level.
Deal-level levered returns: 16.55% IRR / 2.62x equity multiple (project-level, before LP/GP split mechanics).
Projections are estimates only and are not guaranteed. All real estate investments carry risk, including partial or total loss of capital. See Important Disclosures and the PPM.
We paid 55 AI agents to break this deal.
Most sponsors show you one number they tuned until it looked good. We ran a 55-agent adversarial simulation whose only job was to find where The Century fails — then we put the controls in your hands. Move the exit cap. Change the hold. The numbers below are the actual model output, not a marketing range.
Uncertainty creates opportunity.
The near-term setup for Midwest multifamily is among the
strongest we’ve underwritten.
Tariffs, rate volatility, geopolitical risk — through all of it, people need shelter. The Century pairs an 8% preferred return and 10-year fixed-rate agency debt with property taxes that decline by Indiana law — while ~8,500 new jobs land within miles during our hold. LP positions are limited.
Forward-Looking Statements: This material contains forward-looking statements regarding projected returns, cash flows, occupancy rates, and market conditions. These projections are based on assumptions that may not be realized. Actual results may differ materially from those projected. All financial projections, including IRR, equity multiple, and cash-on-cash returns, are estimates only and are not guaranteed.
Past Performance: Gray Capital’s historical track record of 29% average net IRR reflects performance across all investments from 2015–2026. Past performance is not indicative of future results. Each investment carries unique risks and market conditions.
Accredited Investors Only: This offering is made pursuant to SEC Regulation D, Rule 506(c) and is available exclusively to verified accredited investors. This material does not constitute an offer to sell or a solicitation of an offer to buy securities to any person in any jurisdiction where such offer or solicitation would be unlawful. Review the PPM for complete terms, risk factors, and legal disclosures.
$0 Investor Losses: Refers to Gray Capital’s track record across all investments since 2015. Does not guarantee future results.
No PPM Substitute: This page is for informational purposes only. The PPM will contain complete offering terms, subscription procedures, risk factors, and legal disclosures.
Illiquidity & Risk: Real estate investments are illiquid and involve significant risks including loss of capital, market changes, rate fluctuations, tax law changes, environmental risks, and leverage risks. Refer to the PPM for complete risk factors.
Tax Disclaimer: Tax benefits described are general in nature and not tax advice. Consult your tax advisor. Tax laws are subject to change.
