| Type of Property: | Multifamily |
|---|---|
| Number of Units: | 140 |
| Location: | Mobile, Alabama |
| Type of Project: | Value-Add. |
| Acquisition Date: | October 2003 |
| Acquisition Highlights: | $2,000 per unit upgrade completed after purchase |
| Holding Period: | 3 years |
| Investment Highlights: | Market sale resulted in 40% appreciation |
| IRR: | 41.83% |
The Hillcrest Apartments are a 140 unit multifamily development located on 6.69 acres in Mobile, Alabama. It was purchased in October of 2003, for $4,000,000. Immediately following the acquisition, we began minor renovations. Our investment of almost $2,000 per unit translated into higher rents and occupancy. Taking advantage of the strength of this assest and the local market conditions, Hillcrest sold for $5,900,000 in 2006, a full 40% more than it was purchased for just three years prior. Our investors netted an internal rate of return of 41.83%.