SAN FRANCISCO, CA (AUGUST 2022) — Polaris Real Estate Partners, principal investors and managers of multifamily properties, has sold its 120-unit Indigo Apartments in Dallas, TX. This sale is the fifteenth full-cycle capital event – properties acquired, value added and then sold – of 33 assets purchased since 2012. The average net return on investment to investors for the fifteen projects sold was 141%, or 30.9% annualized.
“At the time of purchase, Indigo was named Quail Hollow. The property suffered from the former ownership’s neglect of both the asset and its residents. It took us most of our ownership term to stabilize Indigo, working through COVID-related impacts and challenging resident issues. We rebranded the property, upgraded unit interiors and exteriors and significantly increased income during the time we owned it while maintaining its general condition. These efforts significantly improved the property and doubled its value in about 4.5 years, ultimately providing our investors a net return of 113.5%, or 24.9% annualized, approximately 14% greater than our projected net investor return for this asset about half a year sooner than targeted at the time of purchase,” stated Travis Pacoe, general partner of Polaris Real Estate Partners.
“Indigo is our sixth transaction for 2022. We completed a 1031 exchange with the proceeds by purchasing Hunt Club, a 384-unit property in a strong Austin, TX location, allowing our Indigo investors to defer capital gains taxes while additionally providing equity in a new investment for non-trading investors who wished to join us. We also made room for nine investors who were exchanging out of their own asset sales,” general partner Ron Abta noted. “We are pleased to be able to sell Indigo and provide exceptional returns to our investors well in excess of our target.”
Polaris Real Estate Partners specializes in multifamily investment in the mid-western and central United States. The Polaris senior management team has an average commercial real estate experience tenure of over 26 years. Its two general partners have acquired 7,138 units to build PREP’s current portfolio. Polaris is also deeply committed to enriching the lives of its residents through its social impact programs and community improvement efforts. Polaris Real Estate Partners is seeking individual properties or portfolios of 200 to 1,000 units in size in its targeted areas.