Case Studies

Project Highlights

Acquisition Highlights

  • 300-unit apartment community constructed in 1973Off-market foreclosure acquired at $7.9M ($26K per unit) with extensive deferred maintenance
  • 57% discount to property‚Äôs prior sales price in 2002
  • 49% discount to the current loan balance

$3.9M ($13K per unit) Value Added Repositioning Plan

  • Previous landscaping consisted only of rock beds and provided no drainage. The renovation budget for landscaping totaled $549,482 and included the removal of the rock beds, a full sewer re-pipe, greenery, and other value-add upgrades
  • Amenity upgrades included a new swimming pool, BBQ areas, basketball court, and tot lot. The swimming pool proved to be a significant value added upgrade
  • Value Added: An increase of occupancy from 57% to 90% during only 11 months of ownership

Disposition Highlights

  • Sold for $20.9M ($69k per unit), resulting in a 58.87% property level IRR and a 3.11x equity multiple