2 Property Austin Portfolio Returns 32% to Investors
Less than three years after it is purchased, investors see exit from Austin portfolio
How It Was Done
It all starts with buying right. In November of 2015 our parent company, The PPA Group purchased a two-property portfolio* consisting of a 344 unit apartment complex and a 160 unit complex. While, Austin is historically a very tight real estate market we were able to find a sub-market that was going through rapid changes where we believed we could produce significant value for our investors by purchasing C assets and bringing them up to a B- quality.
As a large organization with its’ own construction company, Ingenium Construction and bulk buying power, the PPA Group was able to renovate many of the units and renovate the club house of one of the properties significantly below labor and material rates. Its’ award-winning property management company, CLEAR Property Management was able to make significant improvements to Net Operating Income (NOI). This was done through implementing our time-tested system, of improving marketing, cutting costs, raising rents and increasing the overall value of the property.
Meanwhile, the dynamic east Austin submarket where the assets were located continued to improve and increase in value.
The end result… These two Austin based multifamily properties produced a total Internal Rate of Return (IRR) of 32% and a Multiple on Investment (MOI) of 2.05x --more than doubling their investment over the 2.67 year hold period.
Past performance is no guarantee of future results. Properties referenced above were sponsored deals of Upside Avenue’s parent company, The PPA Group. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss. Full Disclaimer