Austin Multifamily
Austin MSA

INVESTMENT SUMMARY

· Purchased August 2015 for 20% below replacement cost as back-up buyer in a busted sale process.

· Property suffered from an absentee out-of-state landlord.  In-place unit rental rates were approximately 20-35% below rents at comparable properties, especially for larger units.  Occupancy was 70% with multiple non-paying tenants and considerable deferred CapEx and maintenance.

· Substantial property enhancement projects and renovations in a majority of units resulted in significant rent growth and asset-level value appreciation.

· Community was transformed, Nordic stabilized at near 100% economic occupancy within six months, and NOI increased by ~30%.

· Yield on total costs of 7.6% while comparable apartment assets were trading at 5.5-6%.

· Sold in March 2017.