Multi-Family Investment
Value creation from a complex investment
Key facts:
- Location: Houston, TX and Phoenix, AZ
- 18 multi-family complexes
- Total of 4,471 units
- Investment volume: $390 million
- Financed initially all equity, a favorable loan was put in place in 2002
- Class A assets with state of the art amenities
- Portfolio sold in 2006 for $712 million
Investment Case:
- Client was co-invested in portfolio of properties
- EII was brought in to develop a strategic plan including:
- Ownership structure: gained full control over project buying other partners out and acquiring neighboring complimentary complexes
- Capital structure: negotiated debt financing (50%) to take a portion of the invested equity out and buy out partners
- Occupancy and NOI: changed leasing strategy, repositioned and upgraded assets led to improved asset level performance
- Occupancy at Sale: 92%
- Result was that performance benefitted from EII Realty Corps.' multidisciplinary approach to investment, redevelopment and repositioning of the assets
