SAN FRANCISCO, CA (JULY 2022) — Polaris Real Estate Partners, principal investors and managers of multifamily properties, has sold its 160-unit Waterford Square Apartments in St. Louis, MO. This sale is the fourteenth full-cycle capital event – properties acquired, value added and then sold – of 32 assets purchased since 2012. The average net return to investors for the fourteen projects sold was 142.2%, or 31% annualized.
“At the time of purchase, Waterford Square was our first investment in St. Louis, our second in Missouri and fourth in the Kansas – Missouri area. We acquired Waterford from the original developer of the property. Although we did not upgrade unit interiors to capture incremental increases in rent, we were able to significantly increase income during the time we owned the property while maintaining its general condition. The property is still in very good physical condition and has a long history of stable operations with steady rent growth. These efforts added to the value of the property, ultimately providing our investors a net return of 202.4%, or 32.7% annualized, slightly greater than our historical net investor return averages and approximately 63% greater than our projected net investor return for this asset,” stated Travis Pacoe, general partner of Polaris Real Estate Partners.
“Waterford Square is our fourth transaction for 2022. We are planning to complete a 1031 exchange with the proceeds, allowing our Waterford Square investors to defer capital gains taxes while additionally providing equity in a new investment for non-trading investors who wish to join us,” general partner Ron Abta noted. “We are pleased to be able to sell Waterford Square 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 6,754 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.