Colonial Gardens Condominiums
Details
Location
Return Summary
Highlights
- Fractured condominium
- Extreme physical distress
- Well below market rents
IRR*
Equity Multiple*
Holding Period
* For active deals, IRR and EM return metrics are projected values that are underwritten with realized distributions, projected distributions, and a conservaitve terminal value.
Project Description
Project Timeline
November 2017
Purchased the first of 89 units and formed a partnership to systematically negotiate the acquisition and renovation of the remaining units over the ensuing years.
October 2019
After purchasing the first 43 units all cash, we leveraged those assets to secure financing, which we then used to renovate the existing units and acquire additional units.
Loan Terms:
- Fixed Rate: 5.25%
- Amortization: 25yrs
- Prepayment: 50bps at any time
February 2021
After purchasing an additional 35 units, bringing our total to 78 out of 89 units, we leveraged the incremental 35 units for an additional round of financing. This funding was used to renovate existing units and acquire the remaining balance of the 89 units, as well as make our first distribution to investors. This first distribution returned 10% of initial equity.
Loan Terms:
- Fixed Rate: 5%
- Amortization: 25yrs
- Prepayment: 50bps at any time
December 2023
Following the acquisition of the final unit in December 2022, we began an extensive exterior and building systems renovation program, including all five boiler and hot water plants, roofs, parking lots, fencing, windows, drainage, sidewalks, landscaping, EV chargers, and 34 covered entries among many other improvements.
A year later, in Decembe 2023 we refinanced all of our previous mortgages with a single, permanent loan through Freddie Mac. The proceeds, combined with all previous quarterly distributions, brought all investors to an 87.4% return of initial equity.