Multifamily
Real Estate Investing

Highlights:

• Immediate mgmt cost reduction per unit of $900
• Highest average income in Indianapolis MSA
• Desirable school system
• Easy commute to over 5,000 medical jobs
• Prior management deemed weak
• Record population growth since 2000: Westfield (229%), Noblesville (105%), Carmel (45%) and Fishers (135%)

Highlights:

• 90% value increase in under 3 years
• All initial capital returned after a cash-out refinance (investors still retain their equity shares)
• Renovation resulting in ~$200 in per door rent increases.
• Ancillary revenue is up ~60% (applications fees, pet rent, water/sewer, trash, garage rent, admin fees, etc.)

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Highlights:

• 7-year business plan was achieved in 3 years
• Significant management expense reduction
• Replaced roofs, full interior renovation, redesigned sewage system and plumbing

Economics:

• Targeted Hold time: 7 yrs
• Realized Hold Time: 3 Yrs
• Targeted IRR: 17%
• Targeted Equity Multiple: 2.09X
• Realized Equity Multiple: 2.55X

Highlights:

• Shared management teams with sister property within close proximity which resulted in reduced maintenance expenses.
• Light upgrades to units and amenities

Economics:

• Targeted Hold Time: 7 yrs
• Hold Time: 3 yrs
• Targeted IRR: 19%
• Realized (Net) IRR: 23%
• Targeted Equity Multiple: 2.8X
• Realized Equity Multiple: 1.8X

Highlights:

• 10-year business plan was achieved in year 4; exceeding multiple and IRR return projections.
• Infused $3M into unit and common area upgrades
• Fully renovated 200 Units
• Substantial capital expenditures: roofs, clubhouse pool

Economics

• Targeted Hold Time: 10 yrs
• Hold Time: 4 yrs
• Targeted IRR: 17%
• Realized (Net) IRR: 23%
• Targeted Equity Multiple: 3.3X
• Realized Equity Multiple: 2.33X

Highlights:

• Positioned strategically within Carmel, IN 
• Voted #1 “Best Places to Live” by Niche.com #3 by Money Magazine
• One of the fastest-growing cities in the nation
• Infusing $5,732/unit in renovations: flooring, lighting, hardware, appliances, countertops, etc.

Metrics:

• Total Square Feet: 289,458

Highlights:

• Renovated all 112 units in the first two years solely with in-house maintenance team changing to modern grey paint scheme, adding new black appliances, new flooring, new countertops, new nickel hardware
• Major Amenity Upgrades: Replaced several roofs, new playground equipment, redecorated clubhouse, replaced all exterior and common area lighting with LED fixtures, parking lot repairs and seal coat/restripe
• Total rent grew 29.6% during operations
• Average rent grew 19% during operations

Metrics:

• Targeted Hold Time: 10 yrs
• Hold Time:7 yrs
• Targeted IRR: 17%
• Realized (Net) IRR: 27.3%
• Realized Equity Multiple: 4.21X

Highlights:

• $1.062M in capital expenditures completed organically over the 4 year hold period, ranging from common area painting, washer/dryer hookup installation, balcony repairs, roof replacements, green repairs (done completely in-house), masonry repairs, and HVAC replacement.
• Average lease rent grew 19% over 4 year hold period (avg 4.8% Y-o-Y)
• Total rent income grew 22.6% over 4 year hold period (avg 5.7% Y-o-Y)
• NOI grew 81% final BAM T12 versus previous owner T12 ($796k to $1.44mm)
• Total Operating Expense reduction of $675/unit from the previous owner

Metrics:

• Hold Period: 4 years
• Actual IRR: 37% (Target – 19.261%)
• Actual Equity Multiple: 3.2x (Target – 2.79x)

Highlights:

• Renovated 200 units
• Major amenity upgrades: new leasing center, renovated fitness center, upgraded playground, new dog park, new bocce ball court
• Average rent growth of 22.9% during operations
• Total rent income grew 21.4% during operations

Metrics:

• Targeted Hold Time: 10 yrs
• Hold Time: 3.5 yrs
• Targeted IRR: 33%
• Realized (Net) IRR: 32%
• Targeted Equity Multiple: 2.3X
• Realized Equity Multiple: 2.42X