Investment was a joint venture between SBT Property and Sun Equity Partners.
Presenting an excellent value-add opportunity, with in-place rents at 25% below market. The business plan featured upgrades the property’s landscaping, common areas, increase rents towards market as leases expire, and to renovate vacated units to command a higher rent.
Investment plan provided an eight-percent preferred return with a 60% promote. and a projected refi in Year 4, returning 112.6% of investor equity, and selling the properties in Year 6 at a 6.0% exit cap rate (30.2MM), yielding a 24% IRR and a 2.61x multiple, post-promote.
- Multifamily garden apartment complex
- Three-Story Brick
- 174 2, and 4 bedroom Units
- Off-Street Parking
- Year Constructed: 1960